Does employee rank affect Federally Regulated Employee severance pay?

employee rank affect Federally Regulated Employee severance pay

For those who work in industries and workplaces like banking, telecommunications, airlines and interprovincial and international shipping, the question of whether they are federally regulated employees is an important one. Unlike their provincially regulated peers, those who are federally regulated have greater termination rights and protections. They are also subject to different rules when it comes to Federally Regulated Employee severance pay.

If you are a federally regulated employee, your employment and labour laws are governed by the Canada Labour Code (CLC). This code sets out basic rights and responsibilities for both workers and employers in the private and public sector.

Among other things, the CLC stipulates that when an employer terminates an employee without cause, it must provide the employee with a notice period. This can be in the form of working notice or pay in lieu, and it must be at least two weeks in length.

Does employee rank affect Federally Regulated Employee severance pay?

However, it is important to note that this is just a minimum requirement, and federally regulated employees might have higher termination entitlements under their employment agreements, common law in most provinces except Quebec or under civil law in Quebec. For example, if your employer has an union, your employment agreement might set out a higher minimum telecommunication employee severance pay than is prescribed by the CLC.

It is also important to understand that federally regulated employees may be able to make unjust dismissal claims. This is a powerful safeguard that can result in you getting your job back after a dismissal. However, the limits and requirements for making an unjust dismissal claim are complex. It is important to speak to an experienced employment lawyer, such as Lior Samfiru of Samfiru Tumarkin LLP, to ensure that your rights are protected.

Unlike their non-unionized colleagues, who can be fired for any reason, a federally regulated employee can only be fired if it is for serious misconduct or if their job no longer exists. This is a significant difference that gives federally regulated employees a great deal of job security and can give them more bargaining power when negotiating a severance package.

While a temporary layoff is common in the private sector, federally regulated companies are required to follow the Worker Adjustment and Retraining Notification Act (WARN) when they lay off a large number of employees. As a result, it’s important to review your employment contract and consider whether you are covered under the WARN act when considering a temporary layoff.

It is also important to remember that a temporary layoff does not affect an employee’s severance package. If your employer tries to implement a major change in your pay, position or title, job duties or other aspects of your employment, it may be a constructive dismissal and could leave you owed severance and additional damages. It is always best to speak with an employment lawyer before accepting any changes to your job or severance package.