Losing your job can feel personal, sudden, and overwhelming. Often employers give employees only a short time to consider a severance package or release. Before signing anything, it is important to understand your legal rights.

In British Columbia, employees who are terminated without just cause are generally entitled to notice of termination or pay in lieu of notice (“severance”). While the BC Employment Standards Act sets out mandatory minimum requirements, many employees are legally entitled to significantly more.

The following consultation package is intended for employees who were terminated without cause or laid off. If your employer is alleging “cause” for termination, we would still be happy to arrange an initial consultation with one of our experienced employment lawyers. More information about Initial Consultations can be found here: https://rdmlawyers.com/insights/fees/litigation-consults-faq/.

How much notice am I entitled to?

The first thing we look at is any offers of employment, written contracts or employee handbooks to see if there are any termination provisions and what they say. Even if these exist, they may not be enforceable. The exact wording of any termination provisions is very important as are the circumstances of how you received the document(s).

If there is no enforceable termination clause, severance is based on what courts consider “reasonable notice” in the circumstances.

There is no precise formula. Courts consider factors such as:

• age;
• length of service;
• type of role;
• industry; and
• compensation level.

The overarching goal is to assess how long it would reasonably take the employee to find comparable work.

Another matter that may impact how much you are entitled to is how quickly you find a new job. In general, employees have a duty to act reasonably in searching for alternative work after termination. This does not mean you have to accept any job that is available, but you also cannot take no steps to find work or turn down comparable opportunities in an effort to bolster your claim for damages. If you do find comparable alternative employment during the notice period, typically the income earned would be deducted from the compensation that is owed.

Employers often present severance packages as standard or generous. In many cases, employees may be entitled to more.

Severance Package Consultation

What’s included: We will review your termination letter or severance package, any written offer of employment or employment agreement (if applicable), and any relevant workplace policies or handbook provisions. You will then meet with one of our experienced employment lawyers for a consultation of up to 30 minutes to discuss:

• whether the severance offer appears reasonable;
• factors affecting your legal entitlement;
• concerns relating to termination clauses or releases;
• practical next steps; and
• whether further negotiation or legal action is worthwhile.

During the consultation, we will also discuss what compensation and benefits may form part of your entitlement during the notice period, including bonuses, commissions, allowances, benefits, and other employment-related compensation.

Fee: $500 plus tax.

Due to demand, consultations with Jessie Legaree are $750 plus tax.

Timeline: We can often accommodate urgent timelines relating to severance deadlines, though availability may vary depending on the complexity of the matter and lawyer availability.

Next steps: If after the consultation you would like us to proceed with opening a file and sending a demand letter, we will request a retainer of at least $2,000 and proceed on an hourly basis. More information on hourly billing can be found on our website here: Hourly Rates and Litigation: how much is this going to cost me? If you would prefer that we prepare a demand letter for you to send personally, we are also happy to discuss ghostwriting services.

What do I do if I have a pending deadline for accepting the severance package?

You should have a reasonable opportunity to get legal advice on a severance package. Typically, if you let your employer know that you need more time to consider the offer or to seek legal advice they will provide an extension. Every now and then there is an unreasonable employer and we will accommodate urgent timelines where possible, however depending on timing and lawyer availability, an additional rush fee may apply for urgent reviews.

Often the severance package is conditional upon signing a release where you give up the ability to bring any claims against your employer. It is important that you not sign any documents ahead of receiving advice.

You will also want to be careful about cashing any cheques. If the cheque is limited to accrued vacation pay and your statutory entitlement to notice under the Employment Standards Act, this generally should not affect a claim for additional compensation. However, to be safe, you may wish to wait until after receiving legal advice before depositing any payments and certainly before signing any documents. 

Can I open my file on contingency?

It is typically in your best interest to pay hourly rather than contingency. We will explain why.

Opening a file on “contingency” basically means that the client and law firm have agreed that as compensation for the work completed on a matter, the law firm will receive a percentage of the award obtained for the client when the matter settles or a judgment is rendered. Generally, this means that regardless of the amount of time spent on a matter the legal fees are approximately the same (typically there is a slight increase in the percentage received by the law firm if the matter settles just before trial or goes to trial).

It is rare for wrongful dismissal matters to end up in a trial unless the employer is asserting they had just cause to terminate. That said, in many cases it is not in the best interest of the employee to enter into a contingency agreement as the firm receives an amount far exceeding what the charge would have been for hourly representation. We see these invoices regularly when we represent the employer as often settlements are structured such that a portion of the funds going to the employee are paid as legal fees. In some cases, contingency fees can result in legal fees that are significantly higher than what the client would have paid under an hourly arrangement. As a general principle, we believe clients should understand both models so they can make an informed decision about what is best for them.

We also know that this can present an access to justice issue. Some individuals may not be able to afford to pursue their legal rights without a contingency arrangement. We will consider proceeding on this basis in limited circumstances, but we feel it is important to be transparent about how it works so you can make the decision that is right for you. If you would like to explore this option, you would first proceed with our Consultation Package.

More information about contingency fee agreements can be found here: Contingency Fees and Litigation: how much is this going to cost me?

How Do I Proceed?

Severance packages and releases often come with deadlines. Even if the deadline seems short, do not assume you have to sign immediately.

Please reach out to our Litigation Intake Team at 778.666.3723 or litigationcoldcalls@rdmlawyers.com. First we will need to confirm who the parties are and that we are able to represent you. Then we will ensure you are set up with the right team members within our Employment & Human Rights Law Group.