Losing a job can be stressful and overwhelming, but if you’ve been terminated by your employer in Canada, it’s important to know your legal rights and options. Canadian employment laws provide protections for workers, ensuring that terminations are fair and that employees receive appropriate compensation. Here’s what you can do if you find yourself in this situation.
1. Understand Whether Your Termination Was Lawful
In Canada, employers can terminate employees in two ways: with cause or without cause.
• Termination With Cause: If an employer terminates you with cause, they must have a valid legal reason, such as serious misconduct, fraud, or repeated policy violations. This type of termination is rare and often contested because it means the employer does not have to provide notice or severance pay.
• Termination Without Cause: The vast majority of terminations are without cause. This means that while your employer doesn’t need to give a reason for letting you go, they must provide you with reasonable notice or pay in lieu of notice (severance).
If you believe you were wrongfully dismissed (e.g., fired for discriminatory reasons or without proper notice/severance), you may have legal grounds to challenge the termination.
2. Review Your Employment Contract
Your first step after termination should be to review your employment contract. Many contracts outline the terms of termination, including notice periods and severance entitlements. However, just because a contract includes a termination clause doesn’t always mean it’s enforceable—especially if it violates employment standards legislation in your province.
If you’re unsure about your contract’s terms, consulting an employment lawyer is a good idea.
3. Know Your Rights to Notice or Severance Pay
Under Canadian employment law, employees terminated without cause are entitled to either:
• Working notice (where you continue working for a set period before your employment ends), or
• Severance pay (compensation instead of notice).
The amount of notice or severance depends on several factors, including:
• Employment Standards Legislation: Each province has minimum notice periods based on years of service. For example, in Ontario, the Employment Standards Act (ESA) provides for up to 8 weeks of notice for long-term employees.
• Common Law Entitlements: Courts often award higher severance than the statutory minimum. Employees could be entitled to several months’ worth of pay, depending on their age, position, and length of service.
Some employees, particularly those in federally regulated industries (e.g., banking, telecommunications), may also be entitled to additional severance under the Canada Labour Code.
4. Apply for Employment Insurance (EI)
If you were terminated without cause, you might be eligible for Employment Insurance (EI) benefits. EI provides temporary financial assistance while you look for new work. You should apply as soon as possible after your termination to avoid delays.
5. Consider Negotiating a Better Severance Package
You don’t have to accept the first severance offer from your employer. In many cases, employers offer less than what you may be entitled to under common law. Consulting an employment lawyer can help you negotiate a better severance package.
6. File a Claim for Wrongful Dismissal
If you believe your termination was unfair, you can take legal action by:
• Filing a claim with your provincial employment standards office (for minimum notice and severance entitlements).
• Taking legal action in court for wrongful dismissal (if your severance package was insufficient).
Employment lawyers often work on a contingency basis, meaning they only get paid if you win your case.
7. Know Your Protections Against Discrimination
Employers cannot fire you for discriminatory reasons, such as age, gender, race, disability, or pregnancy. If you suspect discrimination played a role in your termination, you can file a human rights complaint with the appropriate provincial or federal human rights tribunal.
Final Thoughts
Being terminated from a job can be difficult, but understanding your rights and legal options can help you move forward. Whether negotiating a severance package, applying for EI, or challenging a wrongful dismissal, knowing the law puts you in a stronger position. If in doubt, seeking legal advice is always a smart move to ensure you receive the compensation you deserve.
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