You’ve been let go from your job and offered a package and something to sign.
Hilary Page
This can be a confusing moment.
On the one hand, you’ve just lost your income and probably don’t feel like you can afford to fork over money to a lawyer. On the other hand, you’re being asked to sign something that you may not totally understand and will impact your legal entitlements permanently!
Your entitlements on termination
When employees are terminated they are typically entitled to notice of that termination. This is what makes up that package that might be set out in your termination letter. The law around notice can be complicated.
Some employment contracts will effectively limit the amount of notice to which you’re entitled, but many – dare I say most – won’t.
This means you could be entitled to more than is on offer in your termination letter. If you sign the release without having the package reviewed, you could be leaving that money on the table! Indeed, many employers see the package offered in the termination letter as an opening offer. We’ve had clients whose employers outright tell them this in the termination meeting!
When you might not need a lawyer
While we’d recommend that you always get a lawyer to review your package before you sign anything – at the very least to educate yourself on your rights and ensure that you understand what you’re signing – if you’ve been terminated but then immediately get a new job, you might not be entitled to more notice. Notice is – roughly – intended to bridge the gap between the employment you lose and your next job. If your next job is starting right away then there may not be much of a gap.
Minimum standards are just minimums!
Most termination letters will reference minimum standards legislation. In Ontario is this the Ontario Employment Standards Act, 2000. The Act set out the very least – minimum – entitlements that an employer can give you. These include minimum notice of termination. You can learn more here.
Just because an employer has complied with minimum standards does not mean you aren’t entitled to more! It just means they have given you the bare minimum!
If you’ve been let go and have questions about your entitlements, get in touch!
