All About Terminating Employees in Canada
Learn how to terminate employees in Canada when they’ve reached the end of their employment and how Justworks EOR can help simplify the process.
How an EOR Can Help With Employee Termination Expandable RTC
You’ve gone through the effort of hiring an employee in Canada, but circumstances and business needs change. What happens when you need to terminate an employee?
That’s where a global EOR provider like Justworks EOR can offer guidance so you can tick off all the boxes. Our support team has deep knowledge of the labor market and employment regulations in Canada to help you end things on good terms. Save yourself the time, money, and hassle of setting up a local entity by working with Justworks EOR.
Terminating an Employee in Canada
Here are things to be mindful of as you consider letting go of an employee in Canada.
Giving Employees Notice
In Canada, the notice period to end employment without cause can vary by contract type, reason for termination, and provincial laws. Employers must offer notice in writing or pay in lieu of notice. If the termination is for cause, no notice or pay is needed, including in cases of misconduct or neglect of duty.
Things to Know About Notice Periods
Statutory notice periods for employers terminating employees vary by province or territory. The federal minimum requires at least two weeks’ notice or one week for each year of employment, up to eight, for employees with over three years of tenure.
Severance Pay
Severance is paid in addition to minimum employment requirements. Severance pay generally depends on common law factors like length of employment, employee age, employee position, and availability of similar jobs. Common law principles often result in higher severance payments than the minimum standards required by the law.
Ready for Easier Team Management in Canada?
Justworks EOR makes building your global team seamless by offering local expertise to help you understand the nuances of hiring and firing in Canada. Save yourself the time and hassle of international hiring today.
