Terminated? What you do when faced with job loss is crucial, employment lawyer warns
Janice Reynolds got something she did not expect for Christmas — she got let go from her job.
Scrooge paid an early visit mid-December of 2016, and being home for Christmas took on a whole new meaning for Reynolds, a talented and dedicated manager downsized after 10 years. “One day I’m panicked about unbought gifts and what to make for Christmas dinner, the next day I’m panicked about paying for any of it.”
In utter shock, she packed up her desk and a week later signed off on the termination package. Fortunately, the 39-year-old landed on her feet within three months but, in retrospect, Reynolds wishes she had had not signed off so soon and instead sought out legal advice regarding her entitlements.
Don’t panic and don’t sign anything right away, stresses leading employment lawyer Andrew Monkhouse.
December and January are among the most active months for layoffs. Being leaner and meaner in the New Year sees companies cutting costs by cutting employees. And with the aggressive minimum wage hike being rolled out in Ontario, there may very well be more terminations as employers look to offset increased operating costs.
According to Andrew Monkhouse, Toronto employment lawyer and head of Monkhouse Law, the initial loss of a job is stressful and it often makes us lose our clarity and confidence. Don’t be rash or irrational. Take a breath, stay calm and carry on. Then get your legal ducks in a row so you know where you stand and what your potential entitlements are.
“What you do is critical to where you end up next and your quality of life going forward. Job loss isn’t going to kill you but what may hurt is signing off on a package without getting legal advice first,” says Monkhouse, adding that entitlements could be relatively significant.
“I would estimate that more than 80 per cent employers owe unilaterally terminated employees more money than what is in the termination letter, which often should include compensation for vacation time, overtime, uncompensated hours or notice entitlements,” says Monk- house, who offers free phone consultations with a licensed legal professional.
Suddenly unemployed? Take time to record exactly what happened. Sign and date everything. Memories fade and preserving your thoughts and actions may be essential for protecting yourself in later claims, potentially from your past employer.
Keep a job application diary of your time spent looking for jobs and of all your sent applications, suggests Monkhouse. Not only does collecting employment insurance require proof that you’re job searching, but “in case there is a legal claim, made either by you or by your previous employer, you want to be able to prove that you acted reasonably in trying to get a new job.”
Don’t go at it alone. Seek out an employment lawyer. Employment law is complicated and technical and often employees are entitled to significantly longer notice than they think. For example, an employee’s initial contract may well be outdated and no longer applicable. Employees with 10 years of service could get a year or more of notice, Monkhouse adds. It is crucial to contact an employment law firm to help you determine potential entitlements.
The bottom line: Act in haste, repent in leisure with a smaller package. While job loss may leave you dazed and confused, your best bet is to discuss and clarify your particular situation with an experienced employment law firm.
“Unfortunately too many people are signing off on packages that they shouldn’t, many are afraid to ask for what they’re owed,” says Monkhouse.
Typically when you’re let go, your employer has consulted with a professional about what your potential entitlements are and has drafted the termination as a first offer. In other words, whatever your termination letter says, there is almost always room for improvement. But getting it often requires legal expertise to identify the ar- eas of potential improvement and negotiation. “You want a lawyer who’s sharing the risk with you. You want to make sure whatever the retainer is, it’s dependant on the results,” he advises.
Just remember that when a situation takes an unexpected turn, the law does not require you to sign anything immediately after your termination. Taking a moment to think and discuss with a lawyer is always in your best interest.
“You know what they always say: ‘It’s not what happens to you, it’s what you do about it.’ So many times abrupt changes like this are exactly what you need to get out of a rut and move on to something you really love,” says Monkhouse.
Next year at this time, that painful termination will be a distant memory “because you’re likely to be in a better position with better pay, fewer hours, a more exciting job or even great coworkers.” You’ll come out stronger in the end.
what you do is critical to where you end up next ... Job loss isn’t going to kill you but what may hurt you is signing off on a package without getting legal advice first.”