INTRODUCTION One of the worst things you may ever hear is "You're fired. Clean out your desk and hand in your keys". Unfortunately, these days, more and more people are hearing it. If you lose your job the best advice we can give you is don't panic, think things through clearly and seek appropriate advice to make sure that you are doing the right thing. Keep in mind, this will have a profound effect on you, and on your family.         Employer Rights Notice Other Issues Benefits Including Car Allowance Vacation Pay Vacation Mitigation Tax Implications Other Damages Court System Notice Cost Your Choices Your Case         EMPLOYER RIGHTS The reality is that employers can dismiss employees. In order to do so, they must have just cause—a legal concept that is very narrowly defined. Alternatively, they can fire their employees as long as that firing is not in breach of any agreement, collective agreement or Human Rights Code legislation. It is important to note that though an employer may legally fire employees, that action shall result in the employee exercising certain rights, and require the employer meeting certain obligations. There are various rights that come into play when you lose your job. This list is not exhaustive.         NOTICE One of the main obligations that the employer has in these situations is to give the appropriate notice. That notice can be under The Employment Standards Act for Ontario or The Canada Labour Code for federal employees. These statutes simply provide minimum notice and severance pay. They are no substitute for proper and timely legal advice. The range of notice is between one to eight weeks—and can be provided monetarily or by paid working notice. The amount that can be paid under common law is constantly being revised and thus, not available at the time of publication.         OTHER ISSUES Quite apart from the central issue of notice, the additional options you may pursue in any settlement package may include: Moving Costs Share Options Bonuses Relocation Counselling You may be entitled to the cash value of any of these items that would otherwise come to you if you had not been fired.         BENEFITS INCLUDING CAR ALLOWANCE You may be entitled to the equivalent value of the benefits and car allowance that you are currently being provided with by the Company. In the event of your dismissal, the Courts have generally found that you are entitled, for the period of notice, to the equivalent value of those benefits through your existing employer.         VACATION PAY Normally there is no vacation pay accruing and it is simply credited to you to the extent of your working.         VACATION You are entitled to any outstanding vacation that has not yet been paid. In addition, you are entitled to the proportionate share of your annual vacation for the period of notice you are entitled to under The Employment Standards Act.         MITIGATION In the event you lose your job without just cause, issues to be resolved are how much money are you entitled to, and when will you get it. It is important to note that you have an obligation to mitigate your damages. That includes looking for alternative work at a comparable level and networking. What you have to remember is that you are not automatically entitled to get a lump sum for the period of your notice. Your obligation is to keep track of your efforts in looking for work—including keeping copies of advertisements, keeping track of any phone calls or connections you make, and copies of any cover letters sent in response to ads. Those should be kept accessible. Remember, any action you take from a legal point of view may be delayed from the date you lost your job. It is therefore imperative that you control the information flow in a case of this nature at an early stage.         TAX IMPLICATIONS Most severance payments are taxable. You have a limited ability to shelter some of this money by rolling $2,000.00 per year of service prior to 1995, into an RRSP by way of a retiring allowance. Also, if you have some room left in your RRSP you can direct some of your severance money into a tax free RRSP. If monies are paid for punitive, aggravated or mental distress damages, you will not be taxed on that payment.         OTHER DAMAGES In addition to damages by way of notice, you may be entitled to other damages either for mental distress, punitive or aggravated damages. These are important issues and should be addressed in detail with your lawyer.         COURT SYSTEM You may have heard that court cases take too long, or that you won't have a court date for years. That is no longer the case in the Ottawa Court System. Case Management is a system that propels these cases forward in a timely fashion. Shortly after initiating a lawsuit you will take part in a mediation. You, your former employer, your lawyers and a skilled mediator will sit down in a room and attempt to resolve the outstanding issues resulting from your dismissal. This is an excellent tool that results in the early settlement of many of these cases. If the case is not settled there, you can potentially go to court at an early stage by way of a motion for judgment, in order to resolve your case. If that fails, your case would proceed through a settlement conference and ultimately, a trial. Only ten percent of any of these cases ever end up in a trial. The vast majority of them settle, offering the opportunity to resolve your outstanding issues with your employer and to get on with your career.         NOTICE One of the main obligations that the employer has in these situations is to give the appropriate notice. That notice can be under The Employment Standards Act for Ontario or The Canada Labour Code for Federal Employees. These statutes simply provide minimum notice and severance pay. They are no substitute for proper and timely legal advice. The range of notice is between one to eight weeks—and can be provided monetarily or by paid working notice. The amount that can be paid under common law is constantly being revised and thus, not available at the time of publication.         COST One of the most frequent questions that lawyers are asked is "How much is this going to cost me?" Legal fees are based on a combination of hourly rates and results. We are not in business to spend more of your money than we get for you. Our years of experience add immense value to termination settlements. It is a case of spending money to make money. All fees are tax deductible and your employer may pay a contribution towards your legal fees.         YOUR CHOICES Loss of employment is no different than many other decisions you face on a daily basis in your life. You have a series of alternatives that you must weigh carefully, comparing the advantages and disadvantages to any course of action. When people lose their jobs, they are often provided with an offer of additional money up front by their employer in exchange for signing a Full and Final Release. You should never sign such a document without consulting a lawyer. When you review that document with a lawyer, the choices are going to be clear—you can sign the document and enter into a Release, negotiate, or if that fails, sue your former employer. With proper advice from your lawyer, even these difficult choices can be made with ease.         YOUR CASE What you must keep in mind is that this is your case. It is not the lawyer's or your former employer's case. You have to take control and move forward no matter how difficult it may be. Our role as lawyers is to provide you with the tools to make that transition an easier one. We are confident that with proper legal advice that you can move forward on a positive and productive note after losing your job.

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