status affect Federally Regulated Employee severance pay
Regardless of the industry, most federally regulated employees are not able to simply quit their jobs without consequence. This is particularly true in sectors like banking, telecommunications and government where many of these employees are not represented by a union. As a result, severance pay packages for these employees are often substantial.
This means that for these employees, the decision to accept a severance package can be a very complicated one. For example, if an employee believes that they were dismissed from their job for an illegitimate reason, or that they have been unfairly denied a raise that they were due, they may choose to take action by filing a complaint with the Federally Regulated Employees Ombudsman. Taking this step could result in them being reinstated to their position, or getting substantial severance pay.
The probationary period is an important part of the employment relationship for Federally Regulated Employee severance pay. It is designed to give an agency the opportunity to examine on the job performance and conduct of a new hire before they can be terminated for cause. During this time, supervisors should focus on providing support to their employees in order to help them succeed. However, agencies should keep in mind that they still need to ensure that an employee’s performance and behaviour is not unsatisfactory or a danger to the mission of the organization.
Does probationary status affect Federally Regulated Employee severance pay?
In addition, the Canada Labour Code requires that a federally regulated employer provide termination notice or payment in lieu to an employee upon termination without cause. Currently, this amount is two weeks of pay or the equivalent in wages. This will increase on February 1, 2024. This change puts the CLC in line with provincial employment standards legislation, which has a similar graduated system for notice/pay in lieu amounts.
The telecommunication employee severance pay for federally regulated employees is set out in the Canada Labour Code and depends on an employee’s length of service. It is calculated by multiplying an employee’s total number of years of service by the minimum severance pay, as defined in the Code. This number is then divided by the number of weeks in a year.
As a result, the severance pay for federally regulating employees is typically much higher than that of provincially regulated workers. This is because provincially regulated workers are not guaranteed any severance pay at all unless they have been fired for an undue reason.
As a result, it is vitally important that federally regulated employers review their policies on severance pay and ensure they are in compliance with the Code. This is especially important when dealing with probationary periods, as employees may be entitled to significantly more severance pay than their employers might think. The team at Samfiru Tumarkin LLP can assist with this process. Our lawyers are knowledgeable about the requirements of the Code and can review the terms of any existing agreements to make sure they comply. We also advise on the best way to draft future employment agreements to protect the interests of our clients.
