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Termination of Employment & Employee Rights
604 Employees under federal law If you work for a company that is regulated by federal law, such as an airline, bank, or transportation company, you are not covered by the same laws as most other employees. Instead, you are generally covered by the Canada Labour Code. The Code sets out three main rights for most employees who lose their job without a good legal reason. First, they have the right to be given notice; second, they have the right to severance pay; and third, they have the right to be paid money owing in a timely manner.
- Notice requirements under the Canada Labour CodeIf you have worked for at least three months, you are usually entitled to receive two weeks notice if the employer fires you without a good legal reason. A good legal reason normally means wilful misconduct or neglect of duty by the employee. However, if your employer wants you to leave right away, you have the right to receive two weeks pay instead of notice.
- Severance pay eligibilityTo be eligible for severance pay generally depends on how long you have been employed and if you were fired without a good legal reason. If you have worked between one and three years, you have the right to receive five days of wages as severance pay, unless the dismissal is for just cause. If you have worked for more than three years, you have the right to receive two days of pay for every year you worked, unless the dismissal is for just cause.
- Employer required to pay within 30 days of terminationIf you are entitled to pay instead of notice or severance pay, or if your employer owes you wages, vacation pay, or overtime pay when your job ends, you have the right to receive full payment of all money owed to you within 30 days of termination.
For additional information about your rights on termination under the Canada Labour Code, you can contact the Federal Labour Standards office listed the Blue pages of your telephone book. If you require legal advice or assistance, you should contact a lawyer.