The following is a reminder of the upcoming termination notice change for federally regulated employers, published on June 27, 2023, Late Breaking Payroll News.
Under the existing provisions of the Code, employers are obligated to either provide a minimum notice of termination spanning two weeks or offer equivalent remuneration to employees who have been working in continuous service for a minimum of three months.
Effective February 1, 2024, subsequent amendments will introduce a tiered structure for notice of termination or equivalent remuneration, contingent on the duration of an employee's uninterrupted service. The following chart provides the details of the termination notice.
|
Continuous service completed |
Termination notice |
|
3 months |
2 weeks (unchanged) |
|
3 years |
3 weeks |
|
4 years |
4 weeks |
|
5 years |
5 weeks |
|
6 years |
6 weeks |
|
7 years |
7 weeks |
|
8 years and more |
8 weeks |
Employers will also have to issue employees a written statement of benefits upon termination. This statement must delineate all accrued entitlements of the employee as of the issuance date, including:
-
Vacation benefits,
-
Wages,
-
Severance pay, and
-
Any supplementary benefits or allowances associated with their employment, such as vehicle or mobile phone provisions.
In scenarios where employees are compensated in lieu of notice, this statement of benefits must be delivered no later than the termination date. Conversely, when employees receive a notice of termination, the statement must be given at least two weeks before the termination date.
Employers are strongly encouraged to pay close attention to these modifications and evaluate their potential implications on forthcoming termination procedures. To reflect these changes, employers should also revise relevant employment documents, including individual employment agreements, collective bargaining agreements, and any prevailing termination policies.