January has been a difficult month for many Ontarians. In addition to the short days, snow, and cold, we are dealing with rising interest rates and, for a significant number, loss of employment.
In the past 4 weeks, numerous employers (including Hudson’s Bay, Postmedia, Salesforce and Hootsuite) have downsized and dismissed staff. With thousands of Ontarians (and their families) impacted by these job cuts, this article offers a few tips for those faced with a termination of employment:
Stay calm and listen: most employers will schedule a termination meeting to end the relationship. These days, the meeting may be either in person or by telephone or videoconference (although some have resorted to email).
If you are asked to attend a dismissal meeting (or suspect it may be one), do so in a polite and professional manner. Have an eye to the future, both in terms of protecting your reputation and maintaining a good relationship with those you may later rely on for a positive reference.
In addition, be sure to listen carefully to what your employer tells you (take notes either during or immediately after the meeting) and avoid committing to anything. Being dismissed is generally an upsetting experience, and it is important not to make any decisions in the heat of the moment. Instead, having heard what your employer has to say, advise politely that you will review whatever termination documents are provided and be in touch.Get organized: Following the meeting, take some time to process the dismissal:
Talk to family and friends and ensure your support network is aware of what you are going through and can support you.
Review the termination documents. Ensure that you have copies of any employment agreements, or policies, you may have signed with your former employer.
If you do not have copies of your employment contract(s)/policies, contact your former employer (ideally in writing) and ask that they send you copies of any such documents.
Take your time: when a person is dismissed, the employer will often issue a termination letter that includes a severance proposal in exchange for the person agreeing to sign a release agreement within a specified time period (often a week). This deadline is arbitrary. It serves, however, to provide the employer with certainty. A week may not be long enough to make an informed decision about the severance offer and whether the terms of the proposed release are reasonable.
People should not be rushed to make this decision. It is generally a provision of every release that the signatory has had a reasonable time to review the document and voluntarily accept its terms. As such, if you need more time, ask for it. In most cases, a polite email to HR seeking an extension will do the trick.Understand your rights: Schedule time to speak with an employment lawyer. Whether with our firm or another, the key is that you speak with someone who, having reviewed any relevant documents and talked to you, can help you understand your rights.
An experienced employment lawyer will be able to assess whether the severance proposal is fair. If not, they will be able to identify the deficiencies and options in response. This process may include:Ensuring that all outstanding entitlements have been provided (i.e., accrued vacation, unpaid bonuses for prior periods of time, or expense reimbursements);
Ensuring that the employer has met its mandatory statutory obligations (which will include issuing certain minimum payments and maintaining benefits coverage for a prescribed period);
Discussing how the severance offer may be improved (i.e., an increased payment, continuation of pension participation, allowing stocks to vest);
The risk/reward assessment of engaging in a negotiation and options for this process;
Canvassing whether it may make sense to seek outplacement support, positive references, a mutually agreed communication to third-parties, or the right to retain certain assets (such as laptops, smart phones etc.);
Ensuring the severance offer is paid in a tax efficient manner;
Considering re-employment prospects and how these may impact strategy; and
Whether there are any other issues that warrant further consideration (such as an employer unwillingness to accommodate a disability or a pregnancy leave pre-termination).
Make the decision that is best for you: having received legal advice, consider what is best for you. A lawyer should ensure you know your options. As part of this process, you will want to reflect on your re-employment prospects, speaking with family, and consider your personal risk tolerance.
Move forward: in addition to responding to the severance offer (as you see best), it is also important to start moving forwards. You may want to:
Apply for Employment Insurance;
Update your resume;
Update your social media accounts; and
Register with job search resources.
Takeaways for Ontario employees
Losing a job is not easy. This is particularly so where you have worked somewhere for a long time. It is not just about a loss of income and financial certainty. It may challenge your sense of purpose, and lead to feelings of embarrassment, rejection, anger and/or depression.
As such, it is important to remain positive. Perhaps the best way to do this is by keeping focused on the things you can control. Beyond that, acknowledge that you will need to grieve, but keep moving forward. Get informed and then make the decision that is best for you. While a termination may seem like the end, it can also present an opportunity.
Vey Willetts LLP is an Ottawa-based employment and labour law firm that provides timely and cost-effective legal advice to help employees and employers resolve workplace issues in Ottawa and across Ontario. To speak with an employment lawyer, contact us at: 613-238-4430 or info@vwlawyers.ca.