Employee termination is sensitive and technical in nature in Canada, and proper steps need to follow the employer. Fairness in practice and compliance with the law also tend to protect the rights of both parties against costly litigation. Here’s a detailed look at how employee termination can be processed within the laws of Canada.
Understanding Termination Rights
A legal and fair termination would first involve knowledge of both the employer’s and employee’s rights. In Canada, there are two ways to terminate employment: with cause or without cause. Termination for cause usually involves serious employee misconduct or performance that merits summary dismissal. On the other hand, termination without cause means that the employer decides to terminate the employment relationship when, in essence, the employee has not necessarily done anything wrong. Employers should make sure their grounds for such termination are aligned with Canadian employment standards; failure to do this may raise wrongful dismissal claims when rights have been overlooked.
Notice and Severance Pay
Terminations without cause require that employers give notice or pay in lieu of notice. Canadian law requires that employees receive either advance written notice of termination or notice period pay equivalent to the notice period the employee would have worked, whichever option the employer chooses. Again, the requirement is different for various provinces and based on the length of service of an employee. For example, Ontario law says that if an employee has at least three months of service, at least one week’s notice per year of employment, up to eight weeks, must be given. There are also situations in which an employee is entitled to severance pay, which is another financial obligation than notice pay. If too little notice or not enough severance is provided, a court action may be filed and other damages awarded.
Determining Just Cause for Dismissal
An employer who believes they have “just cause” for firing someone will have to go to great lengths to prove indeed that this is the case. The definition of just cause includes serious misconduct: theft, fraud, violence, or persistent insubordination that irreparably damages the employment relationship. The threshold for proving just cause is high, and if an employer terminates someone without sufficient evidence, they risk legal consequences. An employment lawyer can help assess whether there is just cause and can advise how to collect necessary documentation so that termination for just cause is done properly, minimizing the risk of wrongful dismissal claims.
Termination Meeting
The meeting where the termination is to take place is highly important in ending the employment relationship with courtesy and respect. This should be a private meeting, where possible with a neutral third party present, such as human resources. State the actual reason for termination and give time for an employee to ask questions. It is best if discussions are short, factual, and compassionate. An employer should, at this time, also provide a letter of termination which will point out the notice in terms of severance, period, or other benefit entitlements to ensure that employees know what they are entitled to and what they should expect after being terminated.
Providing a Reference and Supporting the Transition
It can also be a gesture of goodwill and professionalism to provide a reference, or even to provide assistance with transitioning the employee from their job. While not legally required, a fairly provided reference has the potential to impact an outgoing employee’s future job prospects positively. Sometimes employers will offer career counseling or employment placement services to help the employee move on. Supporting employees after termination speaks volumes for the employer’s reputation and could reduce potential resentment, which may minimize the potential risks of legal actions or adverse public responses.
Avoiding Common Termination Pitfalls
Employers should be aware of the most common failures in the dismissal procedure. Communication defects, poor documentation, and ignorance of the law bring about a number of complications that can, otherwise, easily be avoided. The employer should have performance appraisals, warning letters, and correspondence regarding the reason for dismissal ready. An employee may file a claim for unfair dismissal or hostile working conditions if their termination is carried out without adequate planning, and this is where preparation is essential in such instances.
Of course, terminating employment is a balancing act between being empathetic yet direct, with some legal backdrop. It is important for employers to refer to the employment standards of their province and, in some cases, take the advice of a lawyer to support the needs of their organization. Appropriately supporting employees through termination serves to protect the organization from potential legal liability and shows respect and fairness in a decent work environment; it benefits the employer’s reputation over time.
