Is Employee Termination in Canada During Restructuring Wrong?

Is Employee Termination in Canada During Restructuring Wrong?
Is Employee Termination in Canada During Restructuring Wrong?

Is Employee Termination in Canada During Restructuring Wrong?


Generally, an employer has the right to fire an employee without cause if they provide them with enough working notice or payment in place of notice and the termination is not motivated by discrimination.

When an employee is fired without cause and their employer does not give them enough notice, it is the most typical kind of termination which is wrongful. Subsequently, the employee might be qualified for compensation.

Restructuring causes an employee to be fired, however, this does not always mean that the employee was fired unfairly.

The Employment Standards Act, 2000 (“ESA”) in Ontario provides minimum entitlements for notice period compensation, thereby protecting employees.

Employees usually have the right to notice of up to eight weeks, with a minimum of one week’s regular pay for each year of employment.

But if the reorganization leads to many layoffs or if they qualify for severance compensation, workers might be entitled to more under the ESA.

Employers Should Understand About Restructuring Terminations

Employers must adhere to employment laws and regulations during the restructuring process. It leads to the employee termination.

If an employee is fired without cause, companies are required by law to provide them either working notice or money instead of notice, as specified in the ESA.

In addition to the minimum required by the ESA, it is critical to ascertain if the employee is entitled to adequate notice under common law.

In Ontario, if an employer fires fifty or more workers in less than six months after a portion of the film is permanently closed and the worker has spent at least five years with the company, the worker is entitled to mass termination pay.

Termination compensation is an extra payment made after the notice period and is determined by the employee’s length of service. It may also be due by the employer under the ESA.

How are the Employee’s Rights Affected?

An employee’s right may be affected by the conditions of the employment contract, especially any clauses about notice and termination.

Employers are responsible for making sure their employment agreements comply with the ESA and are lawful.

Remedies For Wrongful Termination

Employees may file a complaint with the Ontario Ministry of Labour or pursue legal action to enforce their entitlements if they are not given their minimums under the ESA.

To pursue legal rights and actions, employees may also file a civil law case against their employer. Employees cannot file complaints with the Ministry based on the same facts and then take civil action against their former employer.

Employees may intend that restructuring materially changed their working relations and constituted a constructive termination.

If applicable, this can give them the right to avail notice period and get compensation, mass termination benefits, and severance pay.

For both employer and employee, terminations during restructuring can be challenging and legally cumbersome.

All parties concerned must comprehend the legal prerequisites regarding termination and the concept of wrongful rejection.

Consult an Attorney!

Upon termination, employees may also be entitled to appropriate notice period pay under common law. Regarding your entitlement to notice period compensation and if the package provided by the employer is adequate, an employment lawyer can provide advice.

Workers may file a wrongful dismissal lawsuit if they were fired unfairly during the process of restructuring.

An expert employment advocate can assist your company in creating termination packages and guide terminating employees as part of a restructuring process.

A litigation attorney can also support your company in fighting against allegations of wrongful termination.

Employers can reduce the likelihood of unjust dismissal claims and manage restructuring terminations more skillfully by following employment standards and consulting an expert lawyer.




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