Termination of Employees
Employee terminations are never a pleasant experience and are often inevitable. However, expensive legal battles can be avoided with proper knowledge of the law, allowing for informed decision-making. At Roberts & Obradovic Law, we can assist in assessing the legality of a termination under the given circumstances, evaluating any potential risks, and exploring alternative management strategies where feasible.
Important Things to Remember
After deciding to terminate the employment relationship, the employer must plan the specifics of the employee’s termination package. If the employer terminates the relationship without just cause, they are obligated to provide the employee with notice. In certain circumstances, the employer may opt to offer a termination package to the departing employee without compromising its stance that there is just cause for termination.
Depending upon the terms of the employment contract, the employer may be liable for reasonable notice, contractual notice, statutory notice and/or severance pay. If the employer does not provide sufficient notice to the employee, the employee may commence a wrongful dismissal action or bring a complaint to the standards tribunal in the applicable jurisdiction.
Reasonable Notice and Severance Entitlements
Under Canadian common law, employers are legally required to give employees reasonable notice of their intention to terminate the employment relationship, except in cases where there is just cause for dismissal. Neglecting to provide reasonable notice can lead to a wrongful dismissal lawsuit from the employee.
Here are two factors that you should consider:
- Determine the period of reasonable notice – There is no definitive catalogue or list that will guide in assessing reasonable notice in a particular case. In Canada, employers typically reference the Bardal factors, however, other factors may also be considered.
- Calculate the employee’s damages based upon the reasonable notice period – Reasonable notice damages are usually calculated on the basis of the employee’s compensation per month, multiplied by the number of months of reasonable notice. There may be deductions from the damages for mitigation income and collateral benefits.
Reasonable notice may be structured as working notice, or as pay in lieu of notice (either by way of by lump sum or salary continuance), or a combination of both.
How Can Our Employment Lawyers Help You?
Our employment lawyers have extensive experience and can guide you through the intricacies of labor law, including wrongful and constructive dismissals. We can provide legal advice during post-termination negotiations or represent you in court for employment-related issues.
At Roberts & Obradovic, our employment lawyers stay up-to-date with developments and changes in employment law, allowing us to offer our clients the guidance and expertise required when confronted with litigation related to employee termination. Here are some of the areas where we can offer our assistance:
- Avoiding wrongful dismissal claims
- Structuring the termination package
- Determining Liability
- Lump-Sum Package
- Salary Continuance
- Working Notice
- Method of Notice for Minimum Standards Entitlements
- Strategies in Selecting the Reasonable Notice Period
- Termination Package Settlement
- Preparing the Termination Letter
- Preparing Exit Letter and Release of Employment Claims
- Advice on the Termination Meeting
- Employee Termination Policies and Best Practices
Expert advice you need
Consult with our employment lawyers at Roberts & Obradovic Law. We are one of Toronto’s trusted and experienced employment law firms. To get in touch with us, simply give us a call at (647) 724-5179 or fill out our contact form.