As interest rates begin to drop, the economic landscape remains dynamic, presenting both opportunities and challenges for employers and employees alike.
Despite recent job gains, Canada’s unemployment rate remains elevated, and finding full-time work continues to be a challenge for many.
According to the latest Statistics Canada report, the unemployment rate edged up to 6.2 per cent in May, with a notable increase in part-time jobs offsetting declines in full-time employment.
This mixed economic outlook underscores the importance of knowing your non-unionized employment rights and being prepared for potential job market fluctuations.
READ MORE: The ‘big 5’ workplace rights most often overlooked by employees
Here, I review five key employment rights that are essential to know amid the current economic conditions.
1. Severance pay may be higher
If you are fired or let go for any non-discriminatory reason, including the economic situation, you are entitled to a severance package.
Severance exists to help bridge the financial gap between jobs. If it’s going to take you longer to find work because of the market conditions, you could be owed additional compensation to account for the lengthier period of unemployment.
In Canada, severance for non-unionized employees can be as much as 24 months’ pay – sometimes more. The amount an individual is owed is calculated using a variety of factors, including their age, length of service, position and employment contract terms.
READ MORE: 5 ways to determine if your severance package is fair
When determining if our clients have been wrongfully dismissed, my firm considers market conditions and the unique aspects of their situation.
In many cases, we are able to offer our services on a contingency basis, meaning you only pay if we successfully secure your severance – an option that provides Canadians with greater access to justice.
2. Temporary layoffs aren’t permitted
During economic downturns, some employers resort to temporary layoffs. This allows companies to reduce costs while retaining the ability to bring staff back when conditions improve and customer demand returns.
What many Canadians don’t realize is that, in most cases, a temporary layoff isn’t permitted. Your employer doesn’t have the right to pause your job and stop paying you.
Depending on the situation, you might be able to treat a temporary layoff as a termination of your employment. An experienced employment lawyer at Samfiru Tumarkin LLP can assess your legal options and help you secure full severance pay.
READ MORE: 5 ways the Pocket Employment Lawyer can unlock your workplace rights
This might be better than sitting at home with no income for months – hoping that you will be called back to work.
3. Your employer can’t cut your pay
High interest rates and economic slowdowns might lead some employers to reduce wages rather than lay staff off.
Many companies believe that they are allowed to unilaterally slash an employee’s salary or commission whenever they see fit. However, this isn’t true.
Substantial changes to an individual’s job must be agreed upon by both the employee and employer.
If your boss asks you to take a pay cut for any reason, you can respectfully choose to refuse their request in writing.
READ MORE: Boss gave you an ultimatum? 4 key rights you have
In the event that your company decides to proceed with the change despite your objection, don’t quit your job. Instead, remain calm and give my team a call.
We can determine if you have grounds for a constructive dismissal claim and help you secure full severance pay.
4. Contractors are often owed a severance package
Another way that employers try to save money during challenging economic conditions is by hiring independent contractors, rather than employees.
If you are a contractor who was fired or let go during these uncertain times, connect with an experienced employment lawyer at Samfiru Tumarkin LLP.
Many independent contractors are actually misclassified employees. In addition to severance pay, we can determine if you are owed other entitlements, such as overtime pay, vacation pay and holiday pay.
READ MORE: What the Uber class-action decision means for independent contractors
Getting your employment status reviewed can make all the difference. Don’t walk away from the compensation you deserve.
5. You don’t have to sign a new employment contract
In times of economic uncertainty, employers may attempt to introduce new employment contracts for existing staff to reduce their liabilities.
These agreements often include terms that are less favourable to employees, such as reduced severance entitlements or non-competition clauses. In Ontario, the latter has been banned since October 25, 2021.
If you receive a new employment contract from your boss, don’t sign anything before speaking with my firm. We can help you understand the implications of the new agreement and negotiate terms that protect your rights.
READ MORE: 5 things employees should never do before talking to an employment lawyer
At Samfiru Tumarkin LLP, we understand that the current economic environment presents unique challenges. As a result, our team is here to provide expert guidance and support.
With a proven track record of successfully advocating for tens of thousands of clients across Ontario, Alberta and British Columbia, we have earned a reputation for trust and excellence in employment law.
If you are a non-unionized employee who needs help with a workplace issue, we are here for you.
Together, we can navigate these challenging times and secure a brighter future for you and your family.
READ MORE: 5 of the most common work situations where getting an employment lawyer can help
Fired? Lost your job? Boss pressuring you to accept a severance offer immediately?
Contact the firm or call 1-855-821-5900 to secure assistance from an employment lawyer in Ontario, Alberta and British Columbia. Get the advice you need — and the compensation you deserve.
Lior Samfiru is an employment lawyer and co-founding partner at Samfiru Tumarkin LLP, Canada’s most positively reviewed law firm specializing in employment law and long-term disability claims. He provides legal insight on Canada’s only Employment Law Show on TV and radio.