Does quitting your job affect entitlements to EI and severance pay?
During the “Great Resignation”, employees became more mobile than ever. Workers are more willing to change employers and there is less of a premium placed on loyalty. Rare are the employees who will work for one employer their whole lives nowadays.
Generally, if you quit your job voluntarily, you are not legally entitled to severance pay or termination pay. These entitlements are designed to support employees following a termination that is unexpected or initiated by the employer. Quitting usually suggests you’ve made the decision to leave and can plan ahead financially.
“Can I get severance when I quit?” – How resignation affects employment insurance (EI) and severance pay entitlements
As always, it depends on your circumstances. At first blush, you lose entitlements to both if you resign yourself. But there are situations where you could quit and have it considered a constructive dismissal, where you are owed severance. One example is if there are material unilateral changes to your employment relationship or the terms in your employment contract, such as an over-15% reduction in compensation or a demotion in responsibility.
If your employer made significant unilateral changes to your role, hours, salary, or working conditions, and you had no reasonable alternative but to leave, your resignation could be treated as a constructive dismissal.
This entitles you to pursue a severance package under employment law, potentially including termination pay, benefit continuation, and compensation reflecting your service.
If you feel that you are being forced to resign due to significant changes you did not agree to, seek advice from an employment lawyer before taking any further steps. Legal guidance can help you understand if you’re owed a fair severance package based on common law entitlements.
How to quit your job and still get severance pay
If you’re planning to quit your job due to serious issues, like harassment, unsafe work conditions, or a significant change in compensation, document everything. Before resigning, speak with a lawyer to determine if your employer’s conduct amounts to constructive dismissal. This is often the clearest legal route to seek severance after quitting.
Is it risky to leave a job immediately and later claim constructive dismissal?
If an employee does not object to such changes quickly however, they may be found to have condoned the change, which would extinguish any constructive dismissal claim.
Constructive dismissal can also be invoked if the workplace has become so toxic such that a reasonable person could not return to work there.
EI works similarly, where you will only receive benefits upon quitting if you had no other reasonable choice. Unilateral material changes to the employment agreement and discrimination in the workplace would be two examples that could meet that threshold for receiving EI benefits.
Who is entitled to severance pay in Canada?
In Canada, full severance pay is generally owed when a non-unionized employee is terminated without cause, however, entitlement to severance doesn’t always require a direct dismissal. A constructive dismissal claim may also qualify, depending on the facts.
Employee rights to severance depend on the employment contract, length of service, job responsibilities, and lage. In some cases, how much severance pay you could actually receive under common law is significantly higher than statutory minimums.
What am I entitled to when I quit my job?
When you provide your employer with written notice and resign voluntarily, your employer is only obligated to provide you with any outstanding regular wages (including overtime pay, if applicable) and unused vacation pay. You typically lose access to severance, termination pay, and employment insurance benefits unless your resignation qualifies as a constructive dismissal.
If your departure wasn’t entirely voluntary, whether because your employer pressured you to resign or made significant changes to your role without your approval, you should consider consulting an employment lawyer. Legal advice can help you assess your situation and determine what compensation, if any, you’re owed.
How can Whitten & Lublin assist in navigating the process of quitting your job?
It can be risky to leave immediately and try to muster an argument for constructive dismissal after. An experienced employment lawyer can assess your situation and help you maximize your chances of qualifying for entitlements when you do eventually resign.
At Whitten & Lublin, we help employees evaluate their options and protect their rights. Whether you’re facing a hostile work environment, major changes to your job, or pressure to leave, we can help assess whether your circumstances qualify as a constructive dismissal.
If you would like more information about how Whitten & Lublin can help you navigate quitting your job, please contact us online or by phone at (416) 640-2667 today.
