Employment Insurance Requirements under 3 scenarios: Quitting, Dismissed for Cause, Dismissed Without Cause

| June 7th, 2017 | No Comments »

Eligibility Requirements for Employment Insurance

Paying into the Employment Insurance program is usually automatic, with regular deductions taken from you paycheque – individuals that are self-employed may choose to pay into EI. Further, you must have worked the minimum required hours within the last year. This falls between 420 – 700 hours depending on your geographic area. For Toronto, the required annual amount of hours is 630. Individuals must also be without an income for 7 consecutive days, be actively seeking employment and maintain a record of the specific employers contacted along with the date.

Quitting

To be eligible for Employment Insurance (EI) in Canada, your loss of employment cannot be your own fault.  This means that if you voluntarily quit your employment you will not be eligible to claim EI.

Dismissed for Cause

If an employer dismisses an employee for cause then the employee is usually not entitled to EI. Being dismissed for cause means that the employee has done something wrong to warrant a dismissal without notice or a severance package. When an employee is dismissed as a result of a single incident, the wrongful act must be fundamentally incompatible with the employment relation, making continued employment unfeasible. Examples may include theft, workplace violence, or breach of confidentiality.

Dismissal for cause can also happen as the last step of progressive discipline. This requires an employee to have committed multiple wrongs, receiving a disciplinary measure for each instance. Whatever the case may be, if you feel that dismissal was not warranted, it is important to seek legal consultation. In addition to missing out on EI benefits, an employer would also owe additional payment in damages.

Dismissed Without Cause:

If an employer dismisses an employee without cause, the employee is owed notice or pay in lieu. This does not disqualify an employee’s eligibility for EI – employees that are dismissed without cause are eligible to apply for EI benefits, providing they meet the criteria mentioned above.

 

Severance Pay in Canada

| February 16th, 2016 | 2 Comments »

 

Typically, all non-unionized employees that are dismissed without cause are entitled to notice of their termination or pay in place of notice, known as severance. If you have been dismissed your employer may try to limit your severance pay through a written employment contract or offer letter.

The employer can limit your entitlements to the Employment Standards Act (the “ESA”) minimums if you are a provincially regulated or the Canada Labour Code’s minimums if you are a federally regulated.

Most employment relationships are provincially regulated and the ESA minimums can be as low as one week per year of service up to a maximum of eight (8) weeks. An additional week per year of service is possible up to a maximum of twenty-six (26) weeks if you have been with the organization for at least five (5) years and the employer has a payroll of at least $2.5 million in Ontario.

Despite the above, it is important to know that employers, including the largest and most sophisticated, often do not properly limit their employees’ entitlements to the minimums despite what might seem like appropriate language in the contract. In fact, they often get the language or procedure for limiting severance wrong. As a result, if you are terminated you may be entitled to months of severance pay above the ESA minimums. Factors such as your age, length of service, the job you performed, comparable cases and your total compensation will impact the amount of severance you are entitled to.

Our Severance Calculator can assist you in determining an estimate for your severance, but it does not replace the need to speak with a lawyer directly. A lawyer from the Whitten & Lublin team will assess your contract’s enforceability and apply the factors a judge uses to determine a fair amount of severance.

 

Author: Paul Macchione, Whitten & Lublin