Question 1

What kinds of misconduct can be grounds for immediate termination?

Accepted Answer

Various types of misconduct can lead to dismissal for cause. Some common examples include wilful dishonesty (e.g., fraud, theft, breach of trust, deception), breach of trust, workplace harassment and violence, and wilful insubordination and insolence. Unfortunately, no termination is risk-free for employers, if you’re considering a termination under such circumstances, please contact Peninsula Canada to ensure you mitigate your legal risks.

Question 2

What is the difference between termination pay and severance pay?

Accepted Answer

While most employees may be entitled to termination pay, only a few employees whose employment is regulated by the Employment Standards Act or by the Federal Canada Labour Code would be entitled to severance pay.

Generally, when an employer decides to terminate an employee, they may be entitled to notice of termination or pay in lieu of termination notice.

Whereas severance pay is reserved for employees in Ontario or those who are federally regulated. Severance is to be paid when the employer terminates the employment relationship and if:

* The employee has been employed by the organization for five years or more, or

* Either when the employer has a payroll of $2.5 million or more, or

* When the severance occurs due to the permanent discontinuance of all or part of the employer’s business at an establishment and the employee is one of 50 or more employees terminated within a six-month period as a result

Please note that the eligibility requirements for severance pay vary between these two Canadian jurisdictions.

Question 3

If an employee resigns, are they entitled to severance pay?

Accepted Answer

No. Severance pay may be applicable only to Ontario employees or those that are federally regulated who have been terminated and, in addition to that, fulfill the eligibility requirements to receive this entitlement.

Question 4

Do part-time employees get severance pay?

Accepted Answer

Yes. If the conditions mentioned above apply.

Question 5

Can an employer terminate an employee without cause?

Accepted Answer

Yes. Employment standards legislation across Canada entitles an employer to terminate with the requirement to provide a reason for dismissing employees. However, employers must give terminated employees notice of termination or pay in lieu of notice as required under the employment standards legislation of their jurisdiction, or reasonable notice of termination at common law.

Although employers have the right to terminate an employee without cause, employers are prohibited from terminating employees while they are on a statutory job-protected leave, or for a discriminatory reason under a protected ground recognized in Human Rights legislation, or as reprisal for the exercise of a legislated right.

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