partial layoff affect Federally Regulated Employee severance pay
With the COVID-19 pandemic in full swing, many employers have been forced to implement temporary layoffs. As a result, some employees have been given severance pay. In addition, the Government of Canada has amended the federal legislation to allow for a partial termination. While this is not as drastic as a full layoff, it has still been a major impact on workplaces across Canada and internationally. This has caused a lot of confusion and questions regarding how these amendments affect an employee’s severance pay.
The Canada Labour Code (CLC) requires an employer to provide individual employees with statutory notice of termination or pay in lieu of notice based on their length of continuous service. This is a requirement for both federally and provincially regulated employees who are not represented by a union. However, federally regulated employees have additional protections when it comes to their employment because they are employed in industries and places under the jurisdiction of the federal government. This includes banks; transportation companies such as Canada Post Corp and Via Rail Canada; airlines and airports; and broadcasters and telecommunication providers.
These employees are also entitled to Federally Regulated Employee severance pay in addition to their statutory termination entitlements. In the case of severance pay, an employee is entitled to two days of pay multiplied by their regular rate of wages for every full year of service and a minimum of five days of pay. The CLC also requires that an employer give a written statement of benefits to each employee.
Does partial layoff affect Federally Regulated Employee severance pay?
It is important to note that an telecommunication employee severance pay is tax-free. However, it is best to discuss this with a tax professional.
When a Government agency decides to conduct a RIF, it is required to follow the designated process set out in the CLC. The process begins by grouping employees into competitive area categories to limit the scope of the RIF and ensure that each employee is evaluated against others in similar positions with comparable experience, qualifications, and responsibilities. From there, the agency must evaluate each employee and determine whether or not they should be retained, reassigned, or eliminated.
Once the RIF process is complete, an agency must inform each affected employee that they are being separated involuntarily and that they have entitlement to severance pay. This applies to both CSRS and FERS members, and is based on their length of service and their age at the time of separation. It is also important to note that if an employee is entitled to an immediate annuity, their severance package will be higher than that of a non-annuitant.
If you are a Federally Regulated Employee and have been terminated or laid off, we recommend that you contact an experienced employment lawyer. Our team of expert lawyers at Samfiru Tumarkin LLP can help you make an unfair dismissal complaint and seek reinstatement or severance pay. Please note that you only have 90 days to take this step, so it is important to act quickly.