At-will employment is when an employer can terminate an employee’s employment at any moment without providing reason and/or notice. The concept is not a Canadian one. At-will employment in Canada is illegal.
All employees are entitled to either reasonable notice of termination or pay instead of a just cause for dismissal if one is not provided. Any employment contract that includes the term ‘at-will’ any court in Canada will declare as void.
Let’s learn about the legal rights for at-will employment:
What is at-will employment?
At-will employment means the employment relationship is at the will of both parties, and either can choose to terminate it at any time. That is, assuming a termination does not come from retaliation or discrimination. At-will employment is very common in the United States. As mentioned, in Canada, it does exist.
Why at-will employment is illegal in Canada
At-will employment isn’t fair. It does not protect an employee’s job and allows the employer to fire as they see fit. Unless one signs a fixed-term contract with an end date, an employer cannot terminate employment without providing additional support to the employee. While US companies working in Canada often use at-will clauses in their Canadian employment contracts, it still does not entitle any employer the right to fire at will.
Benefits of at-will employment for employees
Despite what an employer may argue, there is no benefit to signing an at-will employment contract for employees. Such a clause, if legally binding, would allow an employee to walk away from their job at any time with no notice and for no reason, but this is hardly an advantage. It has been argued that at-will employment would permit employees the opportunity to strike more easily. However, this hasn’t resulted in making at-will clauses permissible in Canada.
Can you be fired for no reason in Canada?
No, you cannot. No at-will clause or at-will contract will hold up in court. Every at-will contract is automatically replaced with a contract of indefinite duration terminable by reasonable notice only. For example, in Stanley v Advertising Directory Solutions, 2012 BCCA 350, an at-will termination clause in a contract was voided. An employee was awarded 19 months of pay due to the employer’s failure to provide adequate notice.
Can you be fired abruptly and without cause?
At-will employment doesn’t exist, but there are ways around that for businesses that may find themselves in certain situations. An employee who has worked for less than three consecutive months for a company can essentially be terminated without cause. If there is willful misconduct or disobedience involved, termination without cause applies. Certain industries are exempt, such as construction and the airline industry.
6. Protections under the Employment Standards Act
The Employment Standards Act is one of several employment law documents limiting what employees encounter with any sudden and arbitrary termination. For employees who’ve worked for an employer for more than three months, a mandated notice period increases over time.
Termination pay is owed if less notice than required is provided. Employees cannot be terminated at a certain length of service without cause. Severance pay is also owed if the employee accrued more than five years of service. Visit a legal service like employmentlawyertoronto.online to figure out your rights in these circumstances.
What is reasonable notice?
As an employment lawyer will tell you, a part of employee rights is the right to reasonable notice. What reasonable notice is can vary. Factors that help determine this includes the length of service, position in a business, type of employment, availability of similar employment, and what, if any, specialization is involved in the role that a terminated employee is in. If adequate notice isn’t provided, it’s considered wrongful termination.
What qualifies as wrongful termination?
Beyond the reasons mentioned surrounding at-will employment, wrongful termination applies to any firing that is considered illegal according to the ESA. If you’ve been fired due to race, a disability, gender, ethnic background, or similar reason, this is all wrongful termination.
An employment lawyer can help determine how strong a case is or isn’t and provide reasonable advice on best moving forward. If there is just cause for dismissal, however, employers can use this as a way to get around the requirements of employment law.
You have the right to an employment lawyer
Employment contracts have a serious impact on your rights. Contact an employment lawyer if you are being threatened with termination due to an at-will clause, or you’ve been laid off, and your employer is attempting to rely on an at-will clause in your contract to fire you.
These contracts do not hold up in court. You may be owed severance pay or other entitlements. An employment lawyer can advise on the next steps, ensuring your rights are protected and that you aren’t being taken advantage of by an employer who isn’t following employment standards.
