By far the largest number of emails I receive has to do with my posts on severance pay. The questions often have to do with whether an employee received a reasonable package when terminated. The issue always is that reasonable is a contextual question both in terms of the personal circumstances of the ex-employee and the period of the economic cycle one is dismissed.
I typically do not post severance related comments on the blog to shield the privacy of the commentator who may be sharing very personal information. However, the common theme centers around where one can go to determine whether they are receiving a fair severance pakcage. Keeping in mind that I live in Ontario, and the information I provide is confined to this jurisdiction, I would offer these practical steps if one has been dismissed.
First, do NOT hide in shame if you have been dismissed. In this day and age, everyone gets down-sized, right-sized, dismissed or however they spin ones dismissal. As a non-financial comment, things happen for a reason and being asked to move on may sometimes be the best thing for someone. Instead, discreetly ask if others are in the same situation. There is strength in numbers (see below).
There are typically three common avenues to explore to ensure one is receiving reasonable compensation: the appropriate ministry of labo(u)r, an employment lawyer and the human rights tribunal.
Minister of Labo(u)r
The ministry of labour is mostly an information resource which is most appropriate if one believes that the severance is below the statutory minimums (for American readers, as I understand it, at will employment states do not work on minimum standards regime, like Canadian provinces, so the first question to ask the state government is what type of employment regime does the state follow), one is due over-time not paid, working condition issues and changes in ones employment for the negative (aka constructive dismissal).
In certain jurisdictions, the ministry of labour can investigate if minimum severance was not paid and penalize the employer for infractions and order payment to the ex-employee.
The advantage of going to a government resource is it is free and is very helpful from an informational perspective but not from a personal advice perspective (for obvious reasons). The disadvantage, as one commentator noted, is that, as a government resources, it moves with typical government speed if an investigation is opened to ensure an employees rights have not been violated. One is looking at a maximum speed of slow and a minimum speed of glacial.
Heres the catch as well. In many jurisdictions, if one requests a ministry of labour investigation, one is barred from taking legal action at the same time. In essence, one is trading in cost (none) in exchange for delayed justice if forthcoming.
See a lawyer
Let me get two points out of the way quickly: (i) many lawyers offer free consultations; and (ii) seeing a lawyer will not result in an all out brawl ending at the Supreme Court. Lawyers who deal in employment law are good for several things (no snickering):
To circle back to my earlier point, if many employees in the same work-place have been laid off, the best thing to do is to round everybody up and share the expense of hiring a lawyer to represent all the ex-employees. It is easier for the employer to fight off one ex-employee than multiple ex-employees with combined resources to hire a lawyer.
The downside of seeing a lawyer is cost and reputation. If one belongs to a small industry, hiring a bulldog lawyer may give one the reputation for being a trouble-maker, making finding the next position harder. This is why it is important to stress to the lawyer what is and is not acceptable conduct while they work on your behalf.
Human Rights Tribunal
Depending on what side of the fence you sit on, human rights tribunals/commissions are the greatest or worst things to happen. If ones dismissal has some type of human rights issue to it (think of dismissal based on race, gender, religion, sexual orientation etc), there are mechanisms to pursue remedies through these bodies.
The advantage of this route is that justice is paid for by the taxpayer (in many human rights tribunals, the complainant bears no cost to pursue the complaint). The disadvantage is that justice may take a long time. Finally, depending on the jurisdiction, one can or cannot bring a human rights complainant concurrently with legal action and/or government investigation.
Most human rights tribunals have a thorough resource section on ones rights. Their websites are good places to start. One can also ask a lawyer if they have both an employment issue and a human rights issue.
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The above is not meant to be an exhaustive review of where to go for help if one has been dismissed. Instead, if nothing else, it should underline that negotiating a fair severance package is not a do it yourself exercise and one should use the resources available to them. Good luck.
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