revoked if rehired as a Federally Regulated Employee
Many Canadians work in industries regulated by the federal government, including banks, airlines, telecommunications companies and broadcasters. These employees are not unionized and are not subject to provincial labour law, but instead must follow the provisions of the Canada Labor Code (CLC). As a result, they have access to additional protections and remedies than workers who are governed by common law. This includes the ability to claim severance pay if their employer tries to lay off or terminate them in an unjust manner.
In general, non-unionized employees of federally regulated businesses are owed significant severance if they are laid off or fired without cause. This is because the CLC provides a higher standard of notice of termination or pay in lieu of notice for employees than what is mandated by common law. Currently, employees under the CLC must be given two weeks of notice or pay in lieu for a dismissal without cause, while that amount increases with each year of service, according to employment lawyer Trevor Lawson.
A new provision of the CLC, which came into effect on February 1, 2024, requires that employers provide employees who are being laid off or terminated with eight weeks of notice or pay in lieu of employment. This increase is designed to give the federally regulated workforce greater job security than workers who are not covered by the CLC. Regardless of these changes, the CLC still only requires that employers give Federally Regulated Employee severance pay to an employee who has been involuntarily separated from federal service and meets certain other conditions.
Can severance be revoked if rehired as a Federally Regulated Employee?
While the CLC and common law both provide adequate employment standards protections, the former also provides a broader range of adjudicative options in cases of wrongful dismissal for non-managerial employees who are not represented by a union. For instance, a judge can award an telecommunication employee severance pay in a case where the employer terminated an employee for serious misconduct or because it has closed a plant and there are no jobs available for that particular position, among other reasons.
As a result of this greater range of adjudicative options, it is important that federally regulated employees who are being laid off or otherwise affected by an involuntary separation talk to an experienced employment law lawyer right away. Doing so will ensure they are not exposed to the risk of retaliation or other consequences, and that they can take action before it is too late.
This payment helps employees manage their financial obligations, such as mortgage payments, utility bills, and daily expenses, during their job search. Additionally, many telecom companies offer options for severance pay to be spread out over time, providing a steady income stream and aiding financial planning.
Another issue that is important for federally regulated employees to understand is that they cannot be forced to retire on a set age. This is a human rights violation and can be considered a wrongful dismissal. Employees who are forced to retire can file a complaint of wrongful termination with the human rights commission and, in some cases, may be owed substantial severance pay.
