I was fired in Quebec. Is my severance package fair?
Receiving a termination notice can be stressful and overwhelming, especially when the employer provides several documents at once, including a severance offer and release, and asks that they be signed quickly.
In those circumstances, many employees assume that if their employer is offering the Quebec’s Act respecting labour standards minimum, or even more, that is all they are entitled to receive.
That is not always true.
In this article, we explain:
Why the CNESST minimum is not always the full amount an employee may be entitled to receive;
How reasonable notice is assessed under article 2091 of the Civil Code of Québec;
Why salary, bonuses, benefits and other perks may need to be considered;
What to look for before signing a severance offer or release;
How a lawyer can help you understand, negotiate or, where appropriate, pursue your rights in court.
In Quebec, the notice or indemnity provided under the Act respecting labour standards is often only the minimum required by law. Depending on the circumstances, an employee may be entitled to more under article 2091 of the Civil Code of Québec. This article states:
“2091. Either party to a contract for an indeterminate term may terminate it by giving notice of termination to the other party.
The notice of termination shall be given in reasonable time, taking into account, in particular, the nature of the employment, the specific circumstances in which it is carried on and the duration of the period of work.”
That distinction is important, especially before signing a severance offer or release.
The Quebec’s Act respecting labour standards minimum is not always the full picture
When an employer terminates a non-unionized employee without serious reason, the employee is generally entitled to notice of termination or an indemnity in lieu of notice.
The Act respecting labour standards sets out minimum notice periods based on the employee’s years of service. These minimums are important, but they do not always represent the full amount that an employee may be entitled to claim.
In practice, this means that an employer may offer the CNESST minimum and present it as a fair severance package. However, depending on the employee’s age, position, length of service and overall circumstances, that offer may be too low.
An important distinction for federally regulated employees
Quebec’s Act respecting labour standards does not apply to employees of federally regulated businesses, including those in banking, telecommunications, air transportation and certain interprovincial or international transportation sectors.
Instead, the minimum employment standards are set out in the Canada Labour Code.
However, the Civil Code of Québec generally still applies to non-unionized federally regulated employees who work in Quebec, including the right to reasonable notice of termination. It is therefore important to consider all applicable regimes when assessing a severance offer.
Reasonable notice under article 2091 C.c.Q.
Article 2091 of the Civil Code of Québec provides that an employment contract with an indeterminate term may be terminated by giving reasonable notice.
Reasonable notice is not calculated using one fixed formula. Rather, the analysis depends on the specific facts of the employment on a case by case basis.
The law requires that certain factors be considered, including the nature of the employment, the circumstances in which the work was carried out and the length of the employment.
In practical terms, a court may look at several elements, including the employee’s age, seniority, role, level of responsibility, salary, benefits, availability of similar employment and the circumstances that surrounded hiring the employee.
For example, an employee who worked for the same employer for many years, held a specialized or management position, or may have difficulty finding comparable employment could potentially be entitled to more than what the employer offered.
Moreover, a severance offer should not necessarily be assessed based on salary alone. Depending on the circumstances, the employee’s full compensation package may need to be considered, including bonuses, commissions, group insurance, pension contributions, stock options, use of a company vehicle, cellphone allowance and other benefits or perks.
What to do before signing a severance offer
When an employee receives a severance offer, they are often asked to sign a release. This document usually confirms that the employee accepts the amount offered and gives up the right to make further claims against the employer.
That is why it is important not to sign too quickly.
Before accepting a severance package, an employee should understand whether it properly takes into account their potential rights under article 2091 of the Civil Code of Québec.
Once a release is signed, it may be difficult to go back and claim more.
How a lawyer can help
When an employee receives a severance offer, the focus is often on the amount being offered. But the amount is only part of the analysis.
Before signing, it is important to understand whether the offer is reasonable, whether certain amounts or benefits should be included, and what rights you may be giving up in exchange.
A lawyer can review the offer, assess it in light of your circumstances, and advise you on whether there is room to negotiate. If needed, a lawyer can also help you pursue your rights in court.
They can also help you understand the documents your employer is asking you to sign, including any release, confidentiality clause, non disparagement clause, non competition clause or non solicitation clause.
Legal advice can be helpful before signing a severance offer, regardless of your position, title or years of service. Even if the offer seems standard, signing too quickly can have consequences, including giving up amounts you may otherwise have been entitled to claim.
Final takeaway
The CNESST minimum is not always the full amount an employee may be entitled to receive after being terminated.
In Quebec, article 2091 of the Civil Code of Québec may provide for a longer reasonable notice period depending on the circumstances.
If you receive a severance offer, do not assume that the amount offered is necessarily fair. Before signing anything, take the time to understand what is being offered, what rights you may be giving up, and whether there are grounds to negotiate or pursue your rights.
If you have received a termination notice or severance offer, Sivret Légal can assist you in reviewing the documents, understanding your rights, assessing whether the offer appears reasonable in light of your circumstances, negotiating a better package, or, where appropriate, pursuing your rights before the courts.
Every case is different, and a proper assessment requires a review of the facts and documents.
