In late-2022, the company now known as X Corp. and previously known as Twitter conducted a mass layoff of thousands of employees after Elon Musk acquired the tech giant. In doing so, Musk attempted to deprive thousands of employees of the severance packages that they were entitled to, which led to X/Twitter being sued by thousands of now former employees. Finally, it appears that X/Twitter will begin trying to settle these outstanding lawsuits in mediation sessions scheduled to take place on December 1^st and 2^nd of this year.

What Are the Ontario Laws Regarding Mass Layoffs?

Under Ontario law, a mass layoff occurs when 50 or more employees are terminated within a four-week time period.  Employees terminated as a part of a mass layoff are entitled to a greater floor in terms of their minimum severance package than if it were a regular termination (i.e. less than 50 employees let go in a four-week period).  In Ontario, employees who are a part of a mass layoff are entitled to a minimum of 8 weeks’ pay if there are 50-199 employees terminated, 12 weeks’ pay if there are 200-499 employees terminated or 16 weeks’ pay if there are 500+ employees terminated.  However, these are just the minimum levels of pay the employer must pay, and the terminated employees might be entitled to much more than this.

Why Did X/Twitter Initially Refuse to Negotiate Fair Severance Packages?

X/Twitter had previously refused to negotiate fair severance packages for its terminated employees, but it seems that the tide is finally turning and the company is recognizing that it owes its terminated employees severance packages. Mediation involves a neutral third party helping to facilitate an amicable resolution to a dispute. While the mediator does not have the authority to decide the matter the way that a judge would, mediation is an effective tool to help parties in a dispute reach an agreement to resolve the matter and move forward.

What Can Whitten & Lublin Offer to Employees Seeking Legal Guidance on Severance Packages?

If you are an employee who has been let go we recommend that you seek legal counsel to better understand your right to a fair severance package.  We at Whitten & Lublin are happy to provide insight and advice into your specific circumstances. If you are looking for employment lawyers and would like more information about what Whitten & Lublin can do for you, please contact us online or by phone at (416) 640-2667 today.

Author – Nasyr Asmi