What will be the Impact of Tarriff Wars on Canadian Jobs?
How Could a US-Canada Trade War Affect the Job Market?
Talks of a trade war initiated by US President Donald Trump have dominated the news recently, and understandably so. The Canadian economy is significantly integrated into the US economy, particularly since the passage of free trade agreements from 1988 onward. Even though the tariffs have been postponed until March, there has already been damage done. The uncertainty caused by the threats, and the knowledge that a temporary postponement is no guarantee that tariffs won’t be implemented in the future, is corrosive to investor confidence. This is having, and could continue to have, wide-spreading ripple effects on the Canadian economy and job market.
Many industries are reliant on their access to the US market. It is very likely that the tariffs, and the uncertainty wrought by them, will cause significant job losses. But what does this mean for employees facing termination of their employment?
Are Employees Still Entitled to Severance Pay if Terminated?
These unprecedented times do not change the fact that if you are an employee who has been terminated without cause, you are entitled to reasonable notice. Reasonable notice, or severance pay in place of notice, is meant to provide a ‘bridge’ to your next comparable employment. The main factors that go into calculating your reasonable notice period are age, position, tenure, and salary. While properly drafted termination clauses can potentially limit these entitlements, many are unenforceable. Thus, your reasonable notice entitlements could remain. At the very high end, this can reach 24 months and even beyond in special cases.
Can a Recession Affect Severance Pay?
In fact, the potential recession could extend reasonable notice periods. Beyond the factors listed above, the courts have held that industry downturn and economic slowdowns can make a job hunt more difficult, and thus, weigh in favour of a longer notice period.
How Can Whitten & Lublin Help?
If your employment has been terminated due to the threat of tariffs, you could have significant entitlements owing to you. It is important to not sign any release without receiving independent legal advice, as that might waive your rights to a greater package. An experienced employment lawyer can help assess your case, secure as favourable a settlement as possible, and help you weather the geopolitical storm. Times are stressful enough; termination shouldn’t add any more to that. If you have any questions regarding your entitlements upon termination, please contact Whitten & Lublin online or by phone at (416) 640 2667 today.
Author – Aaron Zaltzman