Dealing With Dismissal – A Few Negotiating Tips for Employees and Employers

‘Let go’, ‘downsized’, ‘fired’, ‘indefinitely laid off’, ‘terminated’, ‘dismissed’. These are words no one wants to hear.

In this uncertain economy, being dismissed from your job can be a devastating experience. Gone are the pay cheques, the health and dental coverage, the RRSP contributions and other job perks which you’ve relied on. Not to mention the anxiety and embarrassment of having to leave co-workers, many of whom you have become friends with outside the workplace. What’s more, you are now faced with the prospect of having to go out and find a new job or apply for employment insurance.

Fortunately, the law in Ontario provides you with rights upon dismissal. First, you may be entitled to receive notice of your impending dismissal, or payment for the time when you should have been placed on notice. This is what is often known as pay in lieu of notice. You can generally take these payments in the form of a lump sum or a continuation of payment after dismissal. The amount of pay you may be entitled to depends on many factors including, how long you’ve worked with your employer, your age, your qualifications, and what are your job prospects.

Aside from receiving any payments, you will likely want to obtain new employment. Practically speaking, you might ask yourself the following questions: Will my former employer provide me with a reference? Will the reference be any good? What are my marketable skills? Who can I turn to for help in preparing a resume? In my experience, employees are often surprised to find out that employers are often willing to help employees transition into new jobs. Employers often find that it may be in their interests to do so.

Upon dismissal, an employer may ask you to sign a release, which is a legal document similar to a contract, in which you agree to receive a certain amount of money or certain rights in exchange for your promise not to sue. Before signing this document, you should discuss it with a lawyer to ensure that you are receiving all the benefits which you are entitled to. This may be your best time to negotiate financial compensation and the tools to use in obtaining a new job. These are only some of the benefits you might negotiate.

  • As a former employee, you may be able to obtain a favourable reference letter as part of your compensation package.
  • You may also negotiate the right to review your record of employment – the document sent to Human Resources and Skills Development Canada, which is used to determine your employment insurance eligibility. This may make it easier to obtain employment insurance in the future.
  • Another benefit you may request is the services of an outplacement counseling agency. This is a service where an employee can have their skills reviewed, update their resume, establish business contacts and work on their interviewing skills by professional career counselors.
  • You may also request the right to continue to receive employment perks which you were entitled to during your employment.

Of course, this is only the starting point. If you have been dismissed, you should seek advice from a lawyer practicing employment law to ensure that you get the benefits you are entitled to. If you are an employer looking for guidance with respect to dismissing employees, you should seek legal advice as well.

Pawel Wojtis is a lawyer practicing with Malicki Sanchez, Barristers & Solicitors and can be reached at (905) 274-1650 or via e-mail at Pawel[at]malickisanchezlaw[dot]com regarding any employment law or family law issue. For the complete range of services offered by Malicki Sanchez, Barristers & Solicitors, please visit https://malickisanchezlaw.com/.