As of February 1st, 2024, changes to Part III of the Canada Labour Code (CLC) will come into effect as it relates to the termination notice and pay in lieu of notice where termination of an individual’s employment is based on lack of work or discontinuance of functions as permitted under the CLC as well as introduce the requirement of employers to provide terminated employees with a written statement of benefits.
Termination Notice and Pay in Lieu of NoticeCurrently, the CLC establishes that an employee who is terminated and has completed between 3 months and less than 3 years of continuous work for the employer, must be provided with at least 2 weeks’ notice or 2 weeks’ pay in lieu of notice. On February 1st, 2024, employees who complete 3 years of continuous work for the employer or more, will see an increase to their entitlements. The entitlements will increase in one-week increments for each additional year of employment, up to a maximum of 8 weeks.
The following is how the entitlements will be calculated:
| Length of Continuous Employment | Notice or Pay in Lieu of Notice Entitlement |
|---|---|
| At least 3 months, but less than 3 years | 2 weeks |
| At least 3 years, but less than 4 years | 3 weeks |
| At least 4 years, but less than 5 years | 4 weeks |
| At least 5 years, but less than 6 years | 5 weeks |
| At least 6 years, but less than 7 years | 6 weeks |
| At least 7 years, but less than 8 years | 7 weeks |
| 8 years or more | 8 weeks |
When an individual employee is being terminated, the employer will now have to provide the terminated employee with a written statement of benefits. The written statement of benefits must be delivered to the terminated employee, if given notice of termination, then as soon as possible and no later than 2 weeks before the date of termination, or if given pay in lieu of notice, then not later than the date of termination.
The new requirement of a written statement of benefits must set out the following, employee’s:
- vacation benefits
- wages
- severance pay; and
- any other benefits and pay (such as a car or cell phone allowance, arising from their employment as of the date of the statement)
Connect With Suzanne Desrosiers Professional Corporation
If you have any questions about employment law matters or these new legislative amendments and how they may affect your workplace, please feel free to reach out to Suzanne Desrosiers Professional Corporation by calling us at (705) 268-6492 or emailing us at info@sdlawtimmins.com and we would be more than happy to help!