It is a fact that termination of employment without cause is one of the common practices in the employment law field in Canada; it consists of cases whereby an employer terminates a contract of one of his employees, other than for misconduct, incompetence, or any just cause. At the very least, such termination is legal, provided an employer observes specific requirements under an employee’s contract and under relevant applicable employment laws. Whether you are the employer or an employee, knowledge of the subtleties in this process will make sure that your actions will not be questioned on grounds of legality or fairness.
Notice Periods and Severance Pay
One of the primary legal rights a dismissing employer is required to offer a dismissed employee when effecting a dismissal without cause is a period of working notice, or notice in lieu thereof. The length of notice will be determined based upon numerous factors including the employee’s length of service, position, age and availability of similar employment. These considerations are taken into account at common law, despite the fact that a statutory minimum may be supplied in the provincial or federal employment standards. Severance pay may also be provided in specific circumstances such as where the employee has long service or the employer’s payroll exceeds certain levels. An employment lawyer Calgary should be consulted whether these thresholds are reached to prevent costly disputes arising.
Compliance with Employment Standards Legislation
Upon terminating an employee without cause in Canada, an employer must follow the employment standards legislation of the applicable jurisdiction. In Canada, each province and territory has its own legislation on notices, severance packages, and other entitlements upon termination. The industries under federal jurisdiction-that is, banking and telecommunications, among others-are under the requirements under the Canada Labour Code. Non-compliance may lead to a number of legal implications such as being fined, sued, or even losing business reputation. It would also be required for the employees because they have to be notified of the rights to benefits and other claims under the law.
Written Employment Contracts
A well-written employment contract will pave the way for ease in job terminations and may even help minimize disputes. Such written employment contracts often contain the conditions in the event of termination, or the amount of notice or wages to replace the notice when an employee gets terminated without any proven cause. Not all termination clauses are enforceable, however. If a clause falls below statutory minimums, or if it is otherwise considered unfair, courts may invalidate such a clause and substitute common law. Both parties to an employment relationship should carefully consider the employment contract at the outset of the relationship and seek clarification of any terms that are unclear.
Damages in Lieu of Reasonable Notice upon Termination
The law has thus imposed a corresponding legal duty on a wrongfully dismissed employee to mitigate her damages by making reasonable efforts to find comparable work. Put differently, the damages of an employee upon a case of wrongful dismissal may be mitigated in the case where an employee refuses an offer of suitable employment or neglects to make sufficient efforts in trying to find work. However, it is up to employers to show that the period of notice given, or severance package extended, was enough to afford the employee comparable employment. Good records during the process will help an employer’s position in case a dispute arises.
Pitfalls to Avoid
The most common mistake an employer can make during a termination without cause is the failure to provide adequate notice or severance. This is usually the case when employers solely rely on the statutory minimum, which is typically less generous than the common law entitlements. Other frequent failures include not managing the process, for instance, serving notices of termination in a high-handed or ambiguous manner. For employees, mistakes include failure to seek legal advice to assess the adequacy of the compensation package offered. In doing so, it could avoid many misunderstandings and further reduce the possibility of litigation.
Searching for Resolution within Disputes
Any disputes that are arising in case of termination without cause should best be resolved through negotiations or mediation, before one of the parties is dragged to court. For all concerned, court litigation, aside from being costly, is often long and emotionally draining. Most disputes can be amicably resolved with open communication and professional advice. Applicants who claim unjust dismissal must prove clear losses, and the employer should ensure that all the dismissal documents are full and legally sound.
The no-cause termination of service is a significant event in any employment relationship and involves following due process in regard to numerous legal and contractual requirements. The onus must, however, remain with the employer to allow fair notice or severance according to statutory and common law demands. Still, the employee must assume some responsibilities to acquire the knowledge of his rights. Emphasis on clarity in communications, proper record keeping, and an attitude conducive to disputes flowing will enable both parties to confidently go through the process with honor.