Reasonable Notice of Termination in Canada - For Beginners

Summary

In this video, Amer Mushtaq from YouCounsel explains the concept of reasonable notice of termination in Canadian employment law. He highlights its importance, particularly how it affects financial outcomes for both employees and employers. The video covers what reasonable notice entails, its three forms (working notice, pay in lieu, or a combination), and the difference between common law and statutory rights. Mushtaq also discusses factors influencing reasonable notice periods, such as age, length of service, and job position, while offering insights into negotiating employment contracts to protect one's termination rights.

Takeaways

• 💼 Reasonable notice of termination is a critical concept in Canadian employment law, affecting both employees and employers.
• 💰 Reasonable notice can lead to a significant financial impact, with potential payouts as high as 24 months' income.
• 📜 Common law reasonable notice is the default, meaning employees are presumed to be entitled unless their contract states otherwise.
• ⚖️ There are three main types of notice: working notice, pay in lieu of notice, and a combination of both.
• ✍️ Employment contracts can displace common law rights, limiting termination rights to statutory entitlements or something in between.
• 👩‍⚖️ Courts consider several factors when determining reasonable notice, including the employee's age, length of service, job position, and chances of finding a new job.
• 📅 Older employees, longer-serving employees, and those in higher positions are more likely to receive higher notice periods.
• 🔧 Contracts may include clauses that provide statutory rights or even more generous termination packages, particularly in political or high-profile roles.
• 📝 Negotiating termination rights during the hiring process is critical, as some clauses may be invalid or challengeable.
• 👨‍💼 Consulting an employment lawyer is advised, as many termination clauses can be successfully challenged in court, potentially leading to higher payouts.

Q & A

What is the most important concept in Canadian employment law according to the video?

The most important concept is 'reasonable notice of termination,' which significantly impacts both employees and employers.

Why is reasonable notice important?

Reasonable notice is important because it can translate into a significant amount of money for employees upon termination or for employers if they need to compensate the terminated employee.

What are the two key conditions that must be met for an employee to be entitled to common law reasonable notice?

The employee must be terminated without cause and be entitled to common law rights on termination.

What are the three ways an employer can provide reasonable notice?

1) Working notice: The employee works until a specified end date. 2) Payment in lieu of notice: The employee is terminated immediately but receives compensation. 3) A combination of both working notice and payment in lieu of notice.

What is the difference between common law reasonable notice and statutory notice?

Common law reasonable notice is a right presumed under common law and can be significantly higher than statutory notice, which is determined by specific employment statutes like Ontario's Employment Standards Act.

Can an employer limit or remove an employee’s common law rights to reasonable notice?

Yes, an employer can limit or remove these rights through a written employment contract by including specific termination clauses.

What are the four key factors courts consider when determining reasonable notice?

1) Age of the employee 2) Length of service 3) Position held by the employee 4) Chances of finding another job.

What should an employee do when negotiating an employment contract regarding termination rights?

The employee should try to ensure that common law termination rights are not displaced and remain intact, as these rights can provide greater protection.

What can an employee do if they already have an employment contract with a termination clause?

The employee should review the contract carefully, as many termination clauses may be unlawful or improperly drafted, allowing the employee to challenge the clause and retain their common law rights.

Why is it important to consult an employment lawyer regarding termination clauses?

Termination clauses can be complex, and over 90-95% of them can be challenged successfully. An employment lawyer can help determine if the clause is valid and ensure the employee understands their rights.