Posted by Darryl Aarbo — filed in Employment Law
If you’ve been fired from your job, you are usually entitled to some payout, called severance. There are pervasive urban myths about how much an employer has to pay an employee on termination. Some have basis in truth and some are just plain wrong.
There is no formula to severance; anybody or anything that states that is just plain wrong. Determining common law severance requires balance a number of factors and length of employment is only one factor and not always the biggest factor.
One of the big factors is age, older people are going to get more; Okay Boomer‽ Younger people can make fun of it, but it’s a fact. A baby boomer is going to get more than a millennial because the law considers it harder for a boomer to get a job after 25 years with an employer than a millennial after 5 years. Is it true? Not sure; no questions millennials face a tough job market. Sometimes the law is not actually fair.
If you have a written contract or there is a policy in place then that MAY determine the length of severance, but not necessarily. To bind two parties a contract and policy has to meet a number of rules. Do not assume that just because a contract is written and signed by both parties that it is binding. A contract sign by both party after the employee had already commenced employment could be unenforceable because there is no consideration (please see our other blog posts on this issue). Same with a policy found in a binder on a shelf in someone’s office that only gets pulled out after someone is fired, it may not be enforceable.
If you have been terminated and want the severance you’re entitled to, contact a lawyer at Aarbo Fuldauer LLP in Calgary.
Address: 3rd Floor, 1131 Kensington Road NW, Calgary, AB, T2N 3P4
Phone: (403) 571-5120