[Canada] Longer notice of termination required for seasoned workers

In Canada, a new rule requiring federally regulated employers to provide longer notice of termination for staff who have been in their employ for longer periods of time will take effect on February 1, HRD reports.

Under the new Canada Labour Code rule, when an employer terminates the employment of an employee who has completed at least three years of employment, they must either:

• provide the employee with written notice equivalent to at least 1 week per completed year of employment, up to a maximum of 8 weeks of notice or
• pay the employee their regular wages in lieu of notice

In addition, a combination of notice and wages in lieu of notice will reportedly be permitted, according to the federal government.

This does not apply if an employee:

• has not completed three consecutive months of continuous employment
• terminates their employment
• is dismissed for just cause
• is on a temporary lay-off that does not constitute a termination of employment
• has signed an employment contract that provides a specific end date and that the work ends on that specified date

In 2023, Ontario’s government proposed to amend the Employment Standards Act to ensure remote workers a longer notice period in case of a mass layoff.

From February 1, 2024, employers will also reportedly be required to provide employees with a statement of benefits, at the time of termination of employment, detailing their:

• wages
• vacation pay
• severance pay
• any other benefits and pay arising from their employment

At present, s. 230(1) of the code requires federally regulated employers to provide at least two weeks’ notice of termination or pay in lieu to employees it intends to terminate at a later date. 

Source: HRD

(Link via original reporting)

In Canada, a new rule requiring federally regulated employers to provide longer notice of termination for staff who have been in their employ for longer periods of time will take effect on February 1, HRD reports.

Under the new Canada Labour Code rule, when an employer terminates the employment of an employee who has completed at least three years of employment, they must either:

• provide the employee with written notice equivalent to at least 1 week per completed year of employment, up to a maximum of 8 weeks of notice or
• pay the employee their regular wages in lieu of notice

In addition, a combination of notice and wages in lieu of notice will reportedly be permitted, according to the federal government.

This does not apply if an employee:

• has not completed three consecutive months of continuous employment
• terminates their employment
• is dismissed for just cause
• is on a temporary lay-off that does not constitute a termination of employment
• has signed an employment contract that provides a specific end date and that the work ends on that specified date

In 2023, Ontario’s government proposed to amend the Employment Standards Act to ensure remote workers a longer notice period in case of a mass layoff.

From February 1, 2024, employers will also reportedly be required to provide employees with a statement of benefits, at the time of termination of employment, detailing their:

• wages
• vacation pay
• severance pay
• any other benefits and pay arising from their employment

At present, s. 230(1) of the code requires federally regulated employers to provide at least two weeks’ notice of termination or pay in lieu to employees it intends to terminate at a later date. 

Source: HRD

(Link via original reporting)