Receiving Your Severance Entitlements

Jan 28, 2014

The Most Common Questions After Termination
How much more severance am I entitled to? How long will it take to receive your severance entitlements? How much will it cost? Is it worth it? These are the most common questions employees ask when they’ve just been terminated. The answers are often very different depending on the person and the circumstances.
Factors That Affect Your Severance Entitlements
Daniel Lublin provided his opinion and answered many employment questions during his live chat on the Globe and Mail’s website. As he explained, there is no standard amount that one is entitled to. Age, tenure, position and precedents have to be considered. Executives and top professionals usually receive more severance than administrative employees. At the same time, long-term employees receive more than short-term employees. Older employees receive more severance than younger employees. Judges often use precedents, which are past court cases, to assess what severance should be where employees have similar characteristics.
Winning a Lawsuit in Canada
As Mr. Lublin explained, it really depends on how much more you can get versus what it could cost. As an example, an individual earns $100,000 plus benefits and works for 6 years. He is let go for restructuring and offered 3 months’ pay, which is $25,000. The individual is older and held a rather senior job, so Mr. Lublin would opine that he could likely receive at least double what he was offered in court. Also, keep in mind that when you win a lawsuit in Canada, a good portion of legal fees are likely to be recovered from the employer.
Contact an Employment Expert
However, most times, the package can be improved without going to court. Often, the employer and employee (through a representative or lawyer) can negotiate a deal that saves both sides the time and costs associated with having to go to court.
Before accepting any severance offer from an employer, it is always a good idea to contact an employment expert who can explain whether that offer outlines, at the very least, the minimum entitlements under the law and how they can be maximized.

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