Are you looking into BC termination laws? Employment-related lawsuits have been making headlines in Vancouver, Canada, as employees seek justice for wrongful termination, discrimination, and unpaid severance.
These lawsuits are an indicator of the increasing awareness among employees of their legal rights and a desire to hold employers accountable.
One of the most high-profile cases involved Willie Desjardins, former Vancouver Canucks head coach, who was fired by the team’s owner, Francesco Aquilini, in 2017.
Desjardins filed a lawsuit against Aquilini, claiming that his dismissal was unjustified and that he was owed $1.3 million on his contract. However, the judge ruled in favour of Aquilini, stating that Desjardins had not provided sufficient evidence to prove wrongful dismissal.
BC Termination Rules
Another noteworthy case was a class-action lawsuit filed by former employees of Lululemon Athletica. These employees alleged that they had been terminated without cause and had not been paid severance.
The judge awarded the plaintiffs $185,000 in damages, citing Lululemon’s violation of British Columbia’s Employment Standards Act, which requires employers to provide terminated employees with severance pay.
Similarly, former employees of Earls Kitchen + Bar filed a class-action lawsuit, claiming that they had been terminated on the basis of their age and appearance.
Understanding BC Termination Laws: A Comprehensive Guide
The judge ruled in favour of the plaintiffs, awarding them $9,000 each in damages, and found that Earls had implemented a discriminatory hiring policy that resulted in the termination of older, less attractive staff members.
In 2019, a former employee of Onni Group filed a lawsuit alleging that she had been wrongfully terminated after informing her employer of her pregnancy.
The case is still ongoing, but it serves as a reminder of the importance of employers ensuring that they do not discriminate against employees based on their gender, pregnancy, or other protected characteristics.
Laws Governing Termination and Severance in BC
These cases reflect the growing trend of employees seeking legal recourse for unfair treatment in the workplace. According to data from the Canadian Centre for Policy Alternatives, there has been a steady increase in the number of employment-related lawsuits in British Columbia over the past decade. In 2018, there were 4,875 cases filed in the province, up from 2,708 in 2009.
These cases highlight the importance of employers treating their employees fairly and by the law. As the legal landscape continues to evolve, employers must stay informed and proactive in preventing discrimination and wrongful termination in the workplace.
Severance Calculator In BC
Assuming that you have been employed for exactly 5 years, your salary is $80,000 per year, and you are entitled to 2 weeks’ notice or pay instead of notice, the calculation for your severance pay would be as follows:
Length of service: 5 years
Amount of notice or pay instead of notice: 2 weeks
Regular wages: $80,000 per year
Calculation formula: Since you are paid every year, the formula is to multiply your regular weekly rate (which is your regular yearly salary divided by 52 weeks) by the number of weeks of notice or pay instead of the notice required. So, $80,000 / 52 = $1,538.46 per week, and 2 weeks x $1,538.46 = $3,076.92.
If you were terminated without cause, you would be entitled to $3,076.92 in severance pay. Again, this is based on the minimum requirements set out in the Employment Standards Act of BC, and your employment contract may provide for more generous severance pay.
Do you get severance if you get fired in BC?
Employees who have been employed for three months or more are entitled to receive one week’s notice of termination or pay instead of notice for each year of service, up to eight weeks. An employee who has worked for four years, for instance, would be entitled to four weeks’ notice of termination or pay instead of notice.
Employees who have worked for five years or more and work for an employer with a payroll of $2.5 million or more are entitled to receive an additional two weeks’ notice or pay instead of notice, for up to ten weeks.
It is important to note that these are the minimum requirements set by the ESA, and some employment contracts may provide for more generous severance pay.
If an employer breaches the terms of an employment contract, an employee may also be entitled to additional severance pay.
Understanding BC’s Termination Policies and Severance Packages
There are situations under which employees may not be eligible for severance pay. For example, employees terminated for cause due to misconduct may not qualify for severance pay. Similarly, employees who resign voluntarily would not be eligible for severance pay.
It’s worth mentioning that severance pay is taxable income, and employees should be mindful of this when negotiating severance packages.
According to data from the BC Human Rights Tribunal, the number of wrongful dismissal claims has risen dramatically in recent years. There were 140 claims filed in 2018, up from just 46 in 2015.
Employers should ensure that they comply with the ESA requirements when terminating employees and do not breach the terms of an employment contract to avoid the risk of wrongful dismissal claims.
What is the difference between termination pay and severance pay in BC?
When an employee’s employment is terminated in British Columbia, they may be entitled to receive two different types of compensation: termination pay and severance pay.
Termination pay is the minimum amount of money that an employer is required to pay an employee who has been terminated without cause.
This compensation is calculated based on the employee’s length of service and the amount of notice or pay instead of notice the employer is required to provide under the Employment Standards Act of BC.
An employee who has worked for four years would be entitled to receive four weeks’ notice of termination or pay in lieu of notice.
Severance pay, on the other hand, is an additional payment made to employees who have been employed for at least five years and whose employer has a payroll of $2.5 million or more.
In addition to the notice or pay in lieu of notice required under the ESA, these employees are entitled to receive an additional two weeks’ notice or pay instead of notice, for a maximum of ten weeks.
BC Termination Laws
It’s worth noting that termination pay is a minimum requirement set by the ESA, while severance pay is a benefit that only certain employees are entitled to receive. Also, some employment contracts may provide for more generous severance pay.
According to a report by the BC Ministry of Labour, severance pay is a relatively rare form of compensation in BC. In 2018, only 0.3% of all terminations in BC resulted in severance pay being paid to employees.
This could be because not all employees meet the criteria for receiving severance pay under the ESA.
How long does an employer have to pay you after termination in BC?
If an employee is terminated for cause, the employer may be allowed to withhold payment until the investigation into the cause for termination is complete. Nonetheless, the employer must still provide the final payment as soon as possible.
The final pay includes all wages, overtime pay, vacation pay, and any other compensation that is owed to the employee. This includes any termination pay or severance pay that the employee is entitled to receive under the ESA or their employment contract.
Employees who have not received their final pay can file a complaint with the BC Employment Standards Branch. In 2020, the branch received over 8,000 complaints for unpaid wages, which represented approximately 20% of all complaints received.
A recent report by the BC Ministry of Labour found that unpaid wages were the most common complaint filed with the branch.
The BC Employment Standards Branch investigates complaints and may order employers to pay any outstanding wages, interest, and penalties. In some cases, the branch may also issue a monetary penalty to the employer for failing to comply with the ESA.
Can you get severance pay if you are fired for a cause?
When an employee is fired for cause, it means that they were terminated due to serious misconduct or breach of contract. Common examples of cause for termination include theft, harassment, or insubordination.
Under the Employment Standards Act of BC, employees who are terminated for cause are not entitled to receive severance pay. However, they may still be entitled to receive any outstanding wages, vacation pay, or other compensation owed to them by the employer.
In some cases, an employer may choose to offer severance pay to an employee who has been terminated for cause. This is usually done as a gesture of goodwill and is not required by law.
It’s important to note that the determination of cause for termination can be a complex legal issue. If an employer terminates an employee for cause, they must be able to demonstrate that the employee engaged in serious misconduct or breached the terms of their employment contract.
If an employee feels that they have been terminated for cause unfairly or without just cause, they may wish to seek legal advice.
BC Termination Laws
For employees who are paid on an hourly basis, severance pay is calculated by multiplying their regular hourly rate by the average number of hours worked per week over the previous eight weeks.
For employees who are paid daily, the severance pay is calculated by multiplying their regular daily rate by the average number of days worked per week over the previous eight weeks.
When an employee is paid every week, the severance pay is calculated by multiplying their regular weekly rate by the number of weeks of notice or pay in lieu of notice required under the ESA.
Severance Pay in British Columbia: What You Need to Know
It’s important to note that severance pay is taxable income, and employees should be aware of this when negotiating severance packages. Additionally, some employment contracts may provide for more generous severance pay than what is required under the ESA.
In recent years, there has been a significant increase in the number of wrongful dismissal claims filed with the BC Human Rights Tribunal.
This highlights the importance of employers ensuring that they comply with the requirements of the ESA when terminating employees and that they do not breach the terms of an employment contract.
We hope you found this guide on BC termination laws useful.
