Some Resources: Employment Status and Severance Packages in Canada

To determine how to approach the question of severance compensation when you are laid off you must first determine whether your role was regulated by the federal or provincial employment standards. You can check the following three links to determine, first which applies, then to access the standards.(**Please note that the following information is not intended to convey any form of legal advice, it is simply resources that you can find on the internet to guide you in your decision making.)

Link to determine if your workplace is regulated federally or provincially: http://www.rhdcc-hrsdc.gc.ca/eng/labour/employment_standards/regulated.shtml

There is a link on this page that will take you to the Canada Labour Code should you determine that your organization was federally regulated:
http://laws.justice.gc.ca/en/L-2

If your organization is provincially regulated the following link will take you to the Employment Standards Act for your province:
http://www.rhdcc-hrsdc.gc.ca/eng/labour/employment_standards/ministries.shtml

If your position is covered by a collective agreement, the provisions of the collective agreement shall prevail, except in the circumstance that the collective agreement provision does not meet the minimum applicable labour/employment standards.

Severance packages only need meet the standards; however, in most cases they will go beyond the basic standards. Courts will generally consider the following: age, level of responsibility (entry through to senior executive level), length of service with the organization and the availability of similar work and compensation in the market place.

Outplacement Counseling and Your Job Search

If you are laid off you must mitigate your circumstance by conducting a serious search for new employment, or develop a feasible plan for your own business.

Your ex-employer may offer outplacement counseling as part of your severance package. Before accepting this first consider whether or not you really need this service. There are many resources available on the internet to help you in your search for a new position, so if you have access to a computer and internet service you may not need the outplacement counseling.

Once you research appropriate job search and resume/cover letter writing information via the internet you should discuss your approach with a few people to help ensure that you have the best resume and cover letter possible and to help you practice interview skills. Ask people you trust that have experience in management, human resources, and recruiting to review your resume and cover letter and to help you practice interview skills. Join Social Networking groups such as those found on LinkedIn as you will find further resources and networking opportunities available to you there.

A few online resources for writing resumes and cover letters and tips for developing interview skills can be found at:

http://www.workopolis.com/work.aspx?action=Transfer&View=Content/Common/WorkLoginView&lang=EN
http://www.monster.com/
http://seekers.jobbank.gc.ca/common-commun/login-connection.aspx?redirect=true&target=1&lang=en-CA
http://www.resume-resource.com/examples.html
http://jobsearch.about.com/od/interviewquestionsanswers/a/interviewquest.htm

Check out the free resources available to you before opting for outplacement counseling as those packages can cost several thousand dollars and you may be better off negotiating that amount into your package. If you haven’t conducted a job search in a long time or do not feel confident that you can access the needed resources on your own, then the outplacement counseling may be appropriate for your situation.

Should You Obtain Legal Counsel?

If you have long service with your organization, perhaps in the ten year range, and you are in the 45+ age category, you may consider at least consulting with an experienced employment lawyer if the severance package offered to you either just meets or barely exceeds the appropriate employment standards requirements.

An experienced lawyer will be able to advise you as to whether your compensation package is appropriate or not within about 30-45 minutes. Many firms post their hourly rates on their websites, if not, simply ask when you call for an appointment. Ask around for references as you want a lawyer that will negotiate a reasonable package in a manner that maintains a respectful relationship with your ex-employer.

Common Forms of Severance Packages

The most likely form of severance package that you may be offered is a continuing salary for a specific amount of time. There will be a caveat that should you obtain new employment or become self-employed prior to the end of that period, the balance of the severance will be paid out as a lump sum at 50% only. You may also be offered certain benefits coverage to be continued for a specified period of time, although some benefits require that you be actively at work and may not apply. Other items that are often offered are outplacement packages as discussed above and a reference letter.

Often an option to accept a severance package in a lump sum may be available if you ask. This may come with a caveat, such as a discounted rate. You should consult with a lawyer prior to making a decision.

.(**Please note that the above information is not intended to convey any form of legal advice, it is simply resources that you can find on the internet to guide you in your decision making.)