[QUOTE=Sam Stone]
Here in Canada, it’s just about as easy to be fired. However, the market works to help solve this, in that companies now are free to compete with each other in offering various employment contractst that might limit their ability to fire you. Most companies have a termination policy that extends beyond the minimum legal requirements, and if you don’t like a company’s termination policy, you’re free to not work for them.
Termination policies often spell out exactly what might be grounds for dismissal, and what steps will be taken by the company before this happens (verbal warnings, written warnings, etc). In the case of layoffs where the employee has done nothing wrong but is terminated because the job is no longer worth maintaining, there will often be extra severance packages, longer notice, continuation of benefits for some time after termination, or other payouts to the employee.
I think this is exactly the right way to do it. When employees can’t be fired, companies are more reluctant to hire in the first place. And perversely, I think these laws hurt the disadvantaged more than they protect them, because it’s precisely at-risk members of a society that companies are going to be very shy about hiring if they can’t be fired.
Here in North America, employers can take a risk, because if the employee doesn’t work out, they can let them go and find another. That also means that people with spotty employment records or other problems can still find work.
[/QUOTE]
I think that this gives a misleading impression of the state of the law in Canada to suggest it as easy to get fired in Canada as it is in an “at will” state in the US. (IAAL, but one who has not practiced in the area of labour law for several years.) By and large most employees are governed by provincial laws. There is variation amongst the common law provinces when it comes to labour law, and the variation may be reflected in that province’s Trade Union Act. I won’t pretend to speak to the state of the law in Quebec, operating under the civil code.
That said, in the common law provinces, generally speaking, for those not in a union, an employee’s employment can be terminated either for cause or without. If someone is terminated for cause this means that the employer is not obligated to pay compensation. In these circumstances, the employer had better be prepared to defend the decision to dismiss should a wrongful dismissal suit ensue. Document, document, document.
If cause does not exist, then the employer may still end an employee’s employment, however, the employer must also provide to the employee “notice” either that their employment will end in X period of time, or else pay to the employee an amount equal to that notice. Provinces provide for minimum notice requirements based on the length of employment. These are, however, minimums only. An employee may still assert that the notice provided was insufficient, and follow through with legal action.
The notice provisions will vary somewhat from jurisdiction to jurisdiction. In Saskatchewan , The Labour Standards Act section 43 provides for the following notice periods:
43 Except for just cause other than shortage of work, no employer shall discharge
or lay off an employee who has been in his service for at least three continuous
months without giving that employee at least:
(a) one week’s written notice, if his period of employment is less than one
year;
(b) two weeks’ written notice, if his period of employment is one year or more
but less than three years;
(c) four weeks’ written notice, if his period of employment is three years or
more but less than five years;
(d) six weeks’ written notice, if his period of employment is five years or
more but less than 10 years;
(e) eight weeks’ written notice, if his period of employment is 10 years or
more.
Section 45 makes clear that these are minimum provisions only, and that if contract or custom exists that would dictate otherwise, the employee is entitled to the more favourable settlement.
In practicality for most employees in non-union situations, a careful assessment has to be made as to the sufficiency of the grounds for dismissal before an employer would dismiss for cause. The employer has the choice to: take the chance and dismiss without notice, give the employee notice either in time or money form, or retain the employee and start a performance management/documentation process.