The Canadian Labour Standards provide guidelines for employers in regards to individual termination. These guidelines are intended to protect both parties in the action. As a Canadian employer it is imperativeto know what to do when it comes to terminating an employee. This will ensure you are acting under proper protocol and protecting not only yourself, but your organization.
3 Canadian Labour Standards Recommended for Individual Termination
- Notice or payment in lieu of notice. All Canadian employees are entitled to written notice regarding an intention to be terminated from employment. This should be provided at least two weeks before the last day. However, in lieu of such notice the employee can be provided two weeks wages at their normal rate. This applies to all employees except those who have not completed 3 consecutive months of employment, employees who resign or quit from their job, or those who are dismissed for cause. Employees on lay-off are not considered terminated.
- Severance pay. In order to qualify for severance pay an employee must have worked for at least 12 consecutive months with the same employer. The Labour Board calculates severance pay at the equivalent of 2 days pay at the regular rate of wages for each complete year of employment. The minimum benefit is 5 days wages. Employees dismissed for just cause are not entitled to severance pay.
- Unjust Dismissal. Non-management employees who have completed at least 12 months continuous employment with the same employer and are not part of a union are able to file a complaint against an employer when they feel the termination has been unjust. The Canada Labour Code offers more information on the process for filing these types of complaints.
How Can Anserteam Workforce Solutions Help?
One of the leading staffing providers in North America, our recruiters understand and abide by Canadian law. Are you looking to hire staff to supplement your current team? Contact our team of experienced recruiters today for additional hiring support. Have questions on Canadian labour standards? We are happy to assist you with your questions!