Termination Without Cause and Notice Periods

Brian Bell

by Brian Bell - Pace Law Firm: Most employers and employees think that a “Termination Without Cause” is all about money. However, there are other issues to consider. A Notice Period - whether issued under the Employment Standard Act or the Common Law - is basically a notification that the employer/employee relationship will be ending at some reasonable point in the future.

Throughout any Notice Period, all terms and conditions of the employment relationship must remain the same. Ironically, I see Termination Without Cause packages that limit the term of the fringe benefits (ie dental, eye glasses, so forth) that may be limited to the Employment Standards Notice while the additional Notice Period paid exclude these items as part of the Termination Without Cause package.

A significant portion of employees I see feel that this is not a significant feature. In some cases this could be accurate, especially if the employee’s spouse or partner has similar benefits. However, if the Notice Period is to reflect employment conditions throughout, why does the employer limit benefits which may also include employer pension contributions, group RSP contributions and so on? The cost of these features may be significant for the employer, but the overall cost of fringe benefits for the Notice Period is minimal in the overall scheme of things. Besides, it is quite possible these items could be used as a “negotiating” tool should the employee feel they deserve more than the Employment Standards or Common Law outline. In either case a “Release” would ultimately dictate the final agreement.

In any event, both the Employer and Employee need to be aware of their rights and obligations in the Termination Without Cause process.

Ultimately, both parties save time and money, and the employment period ends on a more positive note for each.