Saint John Lawyers • Mosher Chedore

An employer can dismiss an employee with or without having proper or just cause for doing so.

To dismiss an employee for no just cause, proper notice must be given, or, pay in lieu of notice must be paid to the employee. Pay in lieu of notice is the typical method as employers do not wish to keep dismissed employees in the work place subsequent to dismissal for fear of retribution.

Generally speaking, severance pay, when applicable, is an amount owing to an employee who has been terminated without notice and without cause. If you are terminated for just cause such as theft from your employer, you are not entitled to severance pay. If you are not terminated for cause you may be entitled to severance pay. If you are a member of a union, your entitlement to any such severance pay will be determined by the terms of your collective agreement. If you are not a member of a union and you have signed an employment contract, your entitlement to any such severance pay may be determined by the terms of your contract. If you are not a union member and have not signed an employment contract, or your contract does not specify your entitlement to severance pay, then you may be entitled to such pay if you are terminated without cause. The general rule used by the Courts is one month for every year of service. Please note that severance pay generally is in lieu of notice of termination. The Employment Standards Act specifies the minimum pay in lieu of notice. If you have been provided adequate notice, you will not be entitled to severance after the notice period expires, unless your employer agrees to provide one notwithstanding the notice. There are many other factors governing the entitlement to and the amount of severance. If you are not sure of where you stand, you may contact us anytime.