Serving Scarborough, Markham, Toronto & Surrounding Areas
An employer may terminate an employee’s employment without cause so long as the employee is provided with adequate notice and/or pay in lieu of notice.
Employers have an option of providing working notice or pay instead of working notice. Most employers generally provide pay instead of working notice and therefore choose to immediately terminate employees by providing a termination letter and severance package.
The amount of working notice or pay in lieu of notice that a dismissed employee is entitled, in a termination without cause, depends on a number of factors, such as:
i. Whether an enforceable employment contract exists that limits an employee’s entitlement upon termination. An analysis of the circumstances surrounding the signing of the contract and the bargain itself should be done to determine whether a contract is enforceable to limit entitlements upon termination;
ii. The character of employment held by the employee;
iii. The position held;
iv. The employee’s age;
v. The employee’s ability and likelihood to find alternate comparable employment;
vi. Whether an enforceable company policy sets out the notice period.
There are other factors that may be considered to determine entitlement to notice or pay in lieu of notice. Typically, an employer requires an employee to sign a release in exchange for a severance package. Before signing a release, it is prudent to obtain legal advice from an employment lawyer to ensure that you are being treated fairly, reasonably and according to law.
Whether you’re an employer or an employee, advice from the start from an employment lawyer may promote an early, efficient and cost-effective resolution. In either case, Jagtoo & Jagtoo, Professional Corporation, has the experience to assist in the review or development of severance packages.