As Justin Trudeau leaves the world of politics, the Canadian Taxpayers Federation revealed that the former prime minister’s “exit package” includes two government pensions and approximately $104,900 in severance pay.
While compensation for Canadian politicians is governed by its own set of rules, many non-unionized employees aren’t aware of their rights to severance if they’re fired or let go—putting them at risk of forfeiting a significant payout.
READ MORE: 6 common employer mistakes that could lead to a bigger payout after termination
To ensure you’re provided with the compensation you’re legally entitled to, here are four things you need to keep in mind.
1. Getting angry could affect your severance entitlements
After finding out that your employment is being terminated, it can be extremely tempting to lash out at your boss. However, keeping your cool is crucial.
Severance for non-unionized workers in Canada can be as much as 24 months’ pay. Losing your temper or doing something to hurt the company could affect the amount of compensation you’re legally entitled to.
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2. You don’t have to sign your severance offer immediately
A common misconception is that Canadians need to accept their employer’s severance offer as soon as possible.
If you receive a severance offer from your boss, don’t sign anything before speaking with an experienced employment lawyer at Samfiru Tumarkin LLP. The company can’t force you to accept it on the spot or a few days after it was provided to you.
READ MORE: 5 things employees should never do before talking to an employment lawyer
As long as you didn’t sign the offer and return it to your employer, you have two years from the date of your dismissal to pursue full severance pay.
3. Termination clauses aren’t always legally enforceable
In some cases, companies include a termination clause in their employment contracts—limiting the amount of compensation individuals are owed when they’re fired or let go.
If the agreement you signed does include this provision, remain calm and contact my firm.
These clauses often fail to hold up in a court of law for various reasons—rendering them unenforceable.
4. You’re likely still owed severance if you’re fired “for cause”
In my experience, Canadians rarely meet the conditions necessary to be terminated for cause. Considered the “capital punishment” of employment law, it’s reserved for the worst workplace transgressions, such as assault, theft or serious insubordination.
One case that my team and I will never forget involved a senior sales representative who was fired for cause shortly after challenging a demotion.
The individual received a phone call from her manager—informing her that she was being moved to the position of “sales associate” as part of an “organizational restructuring.”
After taking a moment to process the update, the sales representative politely objected to the demotion and asked her boss if “other options” could be explored.
Two days later, she got another call from her manager—notifying her that she was being let go without severance pay.
READ MORE: Tech exec’s severance victory: Turning termination into triumph
Almost too stunned to speak, the sales representative managed to ask why this was happening. Her boss told her that she “should’ve taken one for the team” before the call ended abruptly.
Certain she was entitled to compensation, the sales representative cleared her desk and contacted Samfiru Tumarkin LLP as soon as she got home.
Given the strength of her case, we were able to secure a comprehensive severance package for our client through a wrongful dismissal claim.
Fired? Lost your job? Boss pressuring you to accept a severance offer immediately?
Contact the firm or call 1-855-821-5900 for a consultation with an employment lawyer. Get the advice you need and the compensation you deserve.
Lior Samfiru is an employment lawyer and co-founding partner at Samfiru Tumarkin LLP, Canada’s most positively reviewed law firm specializing in employment law and long-term disability claims. He provides legal insight on Canada’s only Employment Law Show on TV and radio.