After Shopify eliminated approximately 20 per cent of its workforce in May, dozens of employees contacted my firm – claiming that the company refused to provide them with the severance package they initially agreed to.
Instead, outgoing staff were allegedly asked to accept a smaller package. For many, the alternate offer reduced their compensation by tens of thousands of dollars.
READ MORE: 5 ways to determine if your severance package is fair
Following our review of the allegations, Samfiru Tumarkin LLP launched a $130-million class-action lawsuit against the Canadian e-commerce giant for breaching the contracts it established with the affected workers.
In my decades-long career as an employment lawyer, I have never encountered a situation like this. It reinforces why it’s so important for Canadians to understand their rights to severance.
Unfortunately, many individuals don’t – putting them at risk of not receiving the compensation they are owed when they are fired without cause or let go.
Here are three key rights that non-unionized employees need to be aware of.
1. You are owed full severance pay when you are fired or let go
A common misconception is that severance for non-unionized workers in Canada is one or two weeks’ pay, or a week for every year of service an individual has with the company.
While this might cover the minimum amount of compensation you are entitled to under provincial legislation, our legal system has determined that severance can be as much as 24 months’ pay – even in the event of a mass layoff.
Severance is calculated using a variety of factors, including age, length of service, position at the company and your ability to find new work. To figure out how much compensation you could be owed, use my firm’s free Severance Pay Calculator tool.
If the severance offer you received from your boss falls short of what is legally appropriate, you have been wrongfully dismissed and should contact Samfiru Tumarkin LLP.
We regularly resolve wrongful dismissal claims and can help you obtain proper compensation.
READ MORE: Severance for short-service employees could be more than you expect
In some cases, employers add a “termination clause” to their employment contracts – allowing them to limit a non-unionized worker’s severance package to a few weeks’ pay.
If you are fired or let go, and you did sign an agreement that contains this clause, you should still reach out to my firm before accepting a severance offer.
Many employment contracts aren’t enforceable – failing to hold up in a court of law for various reasons.
Our experienced employment lawyers can review the agreement and inform you of your options if the company’s termination clause is illegal.
READ MORE: Given a new employment contract? Review these key clauses, employment lawyer says
2. You don’t have to sign a severance offer immediately
In my experience, employers often pressure non-unionized workers to immediately accept severance offers that provide them with far less compensation than they are owed.
If you receive an offer from your boss, don’t sign anything until you speak with an experienced employment lawyer at Samfiru Tumarkin LLP. The company can’t force you to accept it before leaving a termination meeting or a few days after it was provided to you.
Getting legal advice before signing the dotted line is crucial. Once you accept a severance offer, you forfeit the right to pursue proper compensation at a later date.
READ MORE: 5 things employees should never do before talking to an employment lawyer
However, if your employer is asking you to agree to a smaller severance package than you initially accepted, contact my firm. This is what dozens of Shopify employees claim happened to them.
We can determine if the company breached the contract it established with you and help you secure the compensation you deserve.
3. You are still owed severance if you were forced to resign
Instead of firing or laying off staff, some companies pressure non-unionized employees to quit their job.
If you were forced to resign for any reason, reach out to my firm immediately. In addition to severance pay, you could be owed compensation for any damages associated with the end of your employment.
READ MORE: Dealing with a bad boss? 3 things you should do
The more evidence you can provide, the better. Gather any relevant documents, including letters, emails or text messages, that show how your employer influenced you to step down.
Let us fight for you
If you are fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.
My firm has helped tens of thousands of non-unionized individuals in Ontario, Alberta and British Columbia resolve their workplace issues.
We can review your situation, enforce your rights and ensure that you receive the compensation you are legally entitled to.
READ MORE: 5 of the most common work situations where getting an employment lawyer can help
Fired? Lost your job? Boss pressuring you to accept a severance offer immediately?
Contact the firm or call 1-855-821-5900 to secure assistance from an employment lawyer in Ontario, Alberta and British Columbia. 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 free advice as the host of Canada’s only Employment Law Show on TV and radio.