Layoff or termination of employees

Are you protected against complaints with the Normes du travail (Labour standards)?

Our experts will explain the difference between a layoff and a termination. They help you define which term applies to your situation, within the Act respecting labour standards.

1. In case of layoff

A layoff is when the employer puts a definitive end to the employment relationship for

  • economic reasons → financial difficulties or decrease in revenue

  • organizational → reorganization bringing about the elimination or fusion of positions

  • technical → technological innovations

The employer lays off his employee when he no longer requires his services. The employer’s choice is based on objective criteria, such as performance, competency, versatility and seniority.

When there is a layoff, the employer must give the employee a notice of termination of employment within the period required by law as well as all sums that are due to the employee: salary, overtime hours, vacation pay (4% or 6%), etc.

2. In case of termination

A termination is when the employer puts a definitive end to the employment relationship for reasons related to the employee’s competency or behaviour.

With some exceptions, the employer who terminates an employee must give such employee a notice of termination of employment within the period required by law, as well as all sums that are due to the employee: salary, overtime hours, vacation pay (4% or 6%), etc.

 

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