Legal Question in Employment Law in Canada

termination of employment due to company restructuring

I have been let know today that due to ongoing difficulties in the telecommunication industry, our company will undergo a major restructuring process; as a result about 32 employees representing about 60% of the company's work-force have received a termination of employment letter which proposes eight weeks pay in lieu of notice.

On the other hand, my Employment Agreement states that for termination without cause (employee not at fault) ''the Employee shall be entitled to severance pay in an amount equal to Base Salary that the Employee would have otherwise entitled during the period following termination equal to 6 months...''

Is it advisable for me not to sign the letter but to ask for the 6 months severance payment? Is it advisable to sue them?


Asked on 4/02/02, 5:54 pm

1 Answer from Attorneys
Steven Matheson Edwards & Carfagnini

Re: termination of employment due to company restructuring

It is not advisable to sign anything until you have made a request for your proper severance. If it states in your contract that the termination notice is higher than what is offered, you should hold your employer to that. If they refuse, you may consider an action against them, based on your employment contract. In any event, you should have a lawyer review the release your employer wants you to sign.

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Answered on 4/04/02, 8:02 am


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