Sunday, October 24, 2010

A clarification on the laws of dismissal

Yes, the law is much stricter here in Canada than it is in the US in regards to firing someone. There is really no such thing as employment-at-will here, unless you count cash under the table type work. That said, it has come to my attention recently that some people have a misconception in regards to the rights of the employee; a misconception that may cost people their job. Thus, I clarify.

An employer can, at will, fire an employee for any reason. This is true whether you are a salaried or hourly employee. Where it does matter whether you're salaried or hourly; whether they have a good reason or not; whether their behaviour is appropriate or not; etc is when it comes to what you get as they throw you out the door. As a Canadian employee, you are entitled to what is known as notice. Notice comes in 2 ways; (a) income in-leiu of notice and (b) time worked. (a) is obviously the most commonly chosen by employers, seeing as they tend to fear retribution unless they escort you out with security the second you're given the news. According to the ESA, statutory notice breaks down as such:



This is, of course, assuming they detailed in the contract that they will be providing you with statutory notice if dismissed. Many contracts miss this, so if you are dismissed and no such clause is in your contract you're entitled to reasonable notice as determined by a civil court (this is generally more generous, and includes considerations such as age, experience, ability to find new work, tenure, management level, etc), but you will have to pay a lawyer.

Finally, as I mentioned one of the impacts on notice is whether they had a valid reason. I believe this is where most misconceptions lie - this does not mean that if you don't agree with the reasoning they it was not just cause. Just cause dismissal means they feel you have breached the employment contract to a point where the contract itself has been made void, ergo you're owed nothing but a kick to the behind out the door. If you don't agree, sue, but think long and hard before you do. Just  cause is very difficult to prove, and generally employers would rather pay notice even with just cause just to avoid possible litigation, so if they have indeed used just cause, they may have a fairly strong case. Standard reasons include severe breach of trust (violating company rules in a way which endangers jobs, cases, etc), breaking the law on the job, breaking the law off work hours in a way that very negatively reflects on the company, etc.

This is just a brief overview, but it seemed necessary. While we're better off than our neighbours to the south, an employee's job is generally not as safe as I've come to believe some of our compatriots believe, and I feel it is my duty to put such myths to rest.

For more on the subject refer to the ESA.

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