Fiona Martyn, an employment lawyer at Samfiru Tumarkin LLP, an employment and labour law firm in Toronto, recommends taking your severance package to a lawyer for review before signing anything. Even though you signed an employment contract upon being hired, sometimes the termination clauses are unenforceable, as the law may have changed during your tenure. “What (an employment lawyer) can do is help you negotiate a better severance package which reflects factors like your age, length of service and position. Severance packages help to bridge the (financial) gap until you find a new job,” she says.
That’s exactly what Michael did (last name withheld for privacy reasons). Michael, who lives in Toronto, lost his job at a large tech company in 2019. “I saw the writing on the wall from a mile away,” he says. “I started getting my ducks in a row.” He was disappointed with his settlement offer—the company let him go only weeks before his stock options would have vested, so his total compensation package was much lower than he expected.
Michael immediately went to a lawyer. “By getting a strong letter from (my lawyer), I was able to get an extra month of severance,” he says. For the one-hour meeting and the letter, he paid $500, which was only a small percentage of the additional severance pay he subsequently received.
How to find an employment lawyer in Canada
You can contact the regulatory organization in your province or territory—like the Law Society of Ontario or the Law Society of British Columbia—for a referral to a qualified employment lawyer. These organizations oversee the practice of law and establish standards of competence for lawyers in each province and territory.
When to apply for unemployment insurance
What is EI? EI used to refer to “unemployment insurance,” but the correct term is now “employment insurance.” To provide provides income to Canadians who have lost their jobs through “no fault of their own” for up to 45 weeksor just over 10 months. The maximum amount you can receive is 55% of your salary, up to $650 a week.
EI begins when you are no longer receiving severance pay from your employer. To be eligible, you have to be out of work and receiving no pay for at least seven consecutive days, and you have to have been terminated without cause. You should apply for EI as soon as you get laid off, regardless of whether your employer offered a severance package, Martyn says. You can apply on the same day you get laid off—even if you don’t yet have the required documents. If you do have severance, simply inform Service Canadawhich administers the EI program, and it will put your EI payments on hold until that period ends. And if you find another job before then, you won’t need EI.
3 ways to prepare for a possible job loss in Canada
Kurt Rosentreter, a senior financial advisor at Manulife, offers these tips to lessen the potential impact of a temporary job loss.
1. Always stay marketable
To prepare for possible job loss, you’ll want to stay marketable—this can help you find another job quickly, says Rosentrer. And the best way to do that is to refresh your LinkedIn profile, get new certificates in your field and keep networking. Don’t be complacent about your skills.
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