wrongful dismissal lawyer

Termination Without Cause: Determining Reasonable Notice

termination without cause

Termination Without Cause – Wrongful Dismissal

When an employee is terminated without cause, it means they are being let go for reasons such as cost cutting, restructuring, or realignment. All employees in Canada are entitled to a certain amount of notice (or pay in lieu of notice) if an employer without just cause terminates them. This compensation is in place to protect employees left without employment with no warning or any type of income.

If you have been terminated without cause in BC, you may have several questions regarding this topic. Below we have compiled some helpful information to help you understand how much you are entitled to when terminated without cause and when payment is required.

How Much Are You Entitled to When Terminated Without Cause in BC?

Termination without cause is perfectly legal in BC if the employer provides you with reasonable notice of termination. Reasonable notice can be given in the form of working notice, pay in-lieu-of working notice or both.

If a BC employer does not provide an employee with reasonable notice, adequate compensation must be issued. If a BC employer fails to do so, a wrongful dismissal case could be brought against them. How much payment is required depends on the length of time an employee was employed:

  • After three consecutive months of employment: one week’s pay must be provided
  • After 12 consecutive months of employment: two weeks’ pay must be provided
  • After 36 consecutive months of employment: three weeks’ pay must be provided
  • For each additional year: a week’s pay (up to a maximum of eight weeks) must be provided

How Much Pay Are You Entitled To When Terminated Without Cause?

There are two types of law – Statutory Law and Common Law.

The statutory requirements for notice are as follows:

  • One week’s pay must be granted after 3 consecutive months of employment
  • Two week’s pay must be granted after 12 consecutive months of employment
  • Three weeks’ pay must be provided after 36 consecutive months of employment.
  • A week’s pay up to a maximum of 8 weeks must be granted for each additional year.

According to common law, reasonable notice is based on length of service, type of position (including salary), age of the employee, and availability of similar employment at the time of termination. Under these requirements, reasonable notice may amount to at least one month per year of employment.

The Period of Common Law Notice Can Be Varied – BC Employment Law

Under common law, severance is not just one or two weeks’ compensation — an employee terminated without cause can be owed up to 24 months of pay. However, it may be stipulated in the original employment contract when hired by the company. This contract may require less notice of termination than common law requirements, but not less than the entitlements listed under the BC Employment Standards Act/Statute Law. 


Have You Been Terminated Without Cause in BC?

If you are involved in a termination without cause situation, it is important you speak with Tim Louis, an experienced employment lawyer, to ensure that your employment rights are applied, and you have been provided with fair compensation. Hiring a lawyer that specializes in employment law will help ensure that you receive a””fair settlement. If you have been let go by your employer or require a severance package review, contact Tim Louis Law today by calling 604-732-7678 or email timlouis@timlouislaw.com, and we will set you up with a no-obligation telephone consultation.

Learn more about termination without cause in the BC Employment Standards Act

 

 

 

 

 

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What is Wrongful Dismissal?

Wrongful Dismissal

What is Wrongful Dismissal?

If you’ve been terminated by your employer, or just want a clear understanding of your rights when it comes to wrongful dismissal law in BC, you’ve come to the right place.

We always encourage employees to seek advice from an experienced legal team that specializes in employment law; however, we also like to educate our clients so they become more familiar with key terms to gain a broad understanding of laws surrounding wrongful dismissal claims.

 

What is Wrongful Dismissal?

A wrongful dismissal occurs when an employee is terminated by their employer without being provided any reasonable notice.

Generally, there are 3 types of wrongful dismissal scenarios:

  • An employer terminates employment without cause and refuses to pay adequate compensation.
  • An employer terminates an employee for cause and fails to pay compensation.
  • An employer alters terms and conditions of employment and ‘constructively dismisses’ an employee by creating a hostile, toxic and intolerable work environment — resulting in the employee being forced to resign from their position.

If you are an employee in BC, your rights are protected by both the Employment Standards Act of British Columbia and federal law — however, it is important to note that a wrongful dismissal claim does not occur simply because an employer has terminated an employee for an illegitimate reason. For example, an employer may have terminated an employee for financial reasons, when in fact there is no basis for doing so.

An employer does not legally have to be completely honest with their reasons for termination, as long as they have just cause to terminate or provide reasonable notice of termination or salary in lieu of notice.

The notice period an employee is entitled to will vary depending on these factors:

  • Length of employment
  • Age of the employee
  • Type of position (including salary)
  • Availability of similar employment in the job market at the time of termination

 

What is ‘Just Cause?’

Under Canadian law, an employer can legally apply just cause termination in the event of serious employee misconduct such as theft, sexual harassment, dishonesty, conflict of interest, incompetence, insubordination, and other types of highly inappropriate conduct during employment. Some “just cause” actions are easier for an employer to prove than others.

Under these circumstances, an employer can terminate an employee immediately without any requirement to provide:

  • Warnings
  • Reasonable notice
  • Severance pay
  • Pay in lieu of notice

 

Proving Wrongful Dismissal

The first thing you will want to do is prove that you were an employee of the company.

Generally, this can be done by providing:

  • Your letter of termination
  • Your Record of Employment (ROE)
  • Pay stubs
  • Proof that you were terminated without adequate notice.

Moving forward, your employer must prove that you were dismissed for ‘just cause.’

 

Do Not Sign a Severance Offer

When you are terminated, your employer may offer you an exit agreement and or offer you a severance package to sign off on, with a short deadline. If you feel you have been wrongly dismissed, do not sign a severance offer before speaking to an employment lawyer. Your employer cannot legally impose a deadline on your full severance entitlements.

Legally you have 2 years following termination to receive your severance pay — if you sign off on a severance package from your employer, you have also signed away your right to pursue legal action for severance pay under common law.

 

Timeline for Filing a Wrongful Dismissal Case in B.C.

To file a claim under the B.C. Employment Standards Act, you have 6 months from the termination date. To sue your employer, you have 2 years from the date you were let go. This goes for employees who work full-time, part-time, or an employee on probation

 

Contact A Trusted Employment Lawyer

If you feel you may have been wrongfully dismissed, it is important to obtain legal advice as early as possible. If you or someone you know has experienced a wrongful dismissal, Tim Louis Law is here to help. We are on your side and will fight hard to ensure that our clients receive full compensation. For more information or to set up a free consultation with Tim Louis & his compassionate, trusted team of experts, call 604-732-7678 or email timlouis@timlouislaw.com

Source: https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/00_96113_01

 

 

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Terminated Without Cause?

Wrongful Dismissal

What Are You Entitled To If You Are Terminated Without Cause?

When an employee is terminated without cause, it means they are dismissed for reasons other than workplace misconduct or breach of contract, which would, in that case, be defined as ‘termination with just cause.’

Oftentimes termination without cause occurs during times of economic downturn or when a company is trying to cut costs or chooses to engage in restructuring or realignment. As long as the reason for the termination or lay-off is not discriminatory, such actions are completely legal.

If your employer follows the employment law, and manages the termination correctly, including giving you reasonable notice of termination, meaning notice or pay in lieu of notice, you will have sufficient time to seek other means of employment or at least be compensated financially for your loss of work.

If the employer does not follow the correct legal procedures, a wrongful dismissal case may result, which means it would be time for you to seek the services of an employment lawyer to make a claim for compensation.

How much payment are you due under statute law when terminated without cause?

Payment due is dependent on the duration of your employment at the company. Nevertheless, the following minimum statutory requirements apply:

  • After three consecutive months of employment: one week’s pay must be provided
  • After 12 consecutive months of employment: two weeks’ pay must be provided
  • After 36 consecutive months of employment: three weeks’ pay must be provided
  • For each additional year: a week’s pay (up to a maximum of eight weeks) must be provided

How much payment is your due under common law if you are terminated without cause?

At common law, you are entitled to substantially more than under statute law. Each case is different depending on age and skill set. Generally speaking, you are entitled to between 4-6 weeks of severance pay per year of employment. However, your employer can deduct from this amount any income you earn during this period of time. Even if you earn no money during this time, the court will make a deduction if you failed to make reasonable efforts to look for employment.

When is a payment not required when terminated without cause?

Pay is not required when terminated without cause if reasonable notice is provided. Under common law, reasonable notice is based on length of service, the age of the employee, type of position and the availability of similar employment at the time of termination.

Under these guidelines, the reasonable notice might amount to at least one month per year of service. This may also be specified in your original employment contract. However, even though your contract may require less notice of termination than common law requirements, it cannot be less than the entitlements listed under the BC Employment Standards Act.

As long as these requirements are met, no payment is necessary in termination without cause cases.

Pay or notice is not required in the following circumstances:

  • You resign or retire
  • Your contract ended
  • You have worked at the company for less than three consecutive months
  • You worked on-call (freelanced), were hired to perform specific work in 12 months or less, or were hired temporarily
  • An unexpected event makes it impossible for the planned duties to be carried out
  • You refuse to accept reasonable alternative employment
  • You are terminated for just cause

The reasonable notice and compensation laws governing termination are clear. All employers and even employees should understand them; otherwise, the laws might be breached, and unfair dismissal cases result, which calls for court action.

Filing a wrongful dismissal claim in Vancouver

If you were terminated without proper notice or pay and wish to file a wrongful dismissal claim, contact us at Tim Louis and Company. Our experienced Vancouver employment lawyer will evaluate your case and guide you through the process.

 

 

 

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