Termination, layoff or dismissal |
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Group termination
In this section
Notice of group termination
Additional requirements
Requests for Waiver
Joint planning committee
Calculating the 4 consecutive week period
A group termination is the termination of employment of 50 or more employees working at a single industrial establishment either: on the same date, or within any 4-week periodIn calculating the number of employees, the following are not included: employees employed on a seasonal basis, or employees employed on an irregular basis under an arrangement whereby the employee may decide to work or not to work when requested Notice of group terminationIf you are an employer planning a group termination of employment, you must: notify the Labour Program’s Head of Compliance and Enforcement in writing at least 16 weeks before the termination of employment is to take effect, and immediately give a copy of the notice to: the Minister of Employment and Social Development Canada (ESDC) the Canada Employment Insurance Commission, and any union representing the affected employees, or to the employees if they are not represented by a union, or immediately post the notice in a visible place within the workplace in which your employees are employed. This may include electronic posting if all affected employees can readily access the noticeThis notice must include: the name of the employer location or establishment where the termination is to take place the nature of the industry of the employer number of affected employees (both unionized and non-unionized) date or dates of termination of employment union information, if applicable, and the reason(s) for the group termination of employment Additional requirementsAs an employer, when a group termination of employment occurs, you are required to: establish a joint planning committee with an employee representative cooperate with the Canada Employment Insurance Commission, and provide affected employees with a statement of benefits, which includes information on the employee’s: wages vacation pay severance pay, if applicable, and any other benefits and pay arising from employmentYou must provide the statement of benefits not later than 2 weeks before the date of termination or earlier, if possible. You must also give your employees the following pay: all outstanding wages, including overtime pay and general holiday pay owed vacation pay pay in lieu of notice of termination, if 2 weeks written notice was not provided, and severance pay if they had more than 12 months of continuous serviceNote: In addition to providing the notice of group termination of employment, employers must follow the requirements for individual notice of termination of employment. Requests for waiverAs an employer, you may request that the Minister of Labour waive certain requirements. Three types of waivers may be granted, including the requirement to: give 16 weeks’ notice provide employees with a written statement of benefits, and/or establish a joint planning committee when you can show that: it would be unduly prejudicial to your interests or of the affected employees it would be seriously detrimental to the operation of the industrial establishment similar measures are already in placeNote: You may complete the form “Notice to the Head of Compliance and Enforcement of a group termination of employment and Request for waiver under the Canada Labour Code, Part III (ESDC-LAB1197)” to: provide notice to the Labour Program’s Head of Compliance and Enforcement and/or make an application to the Minister of Labour for a waiver of the group termination provisionsAny waiver granted will not exceed 6-months duration. Joint planning committeeAs an employer, you must establish a joint planning committee when a group termination of employment occurs. This should be done immediately upon giving notice. The purpose of a joint planning committee is to: eliminate or reduce the need for the terminations of employment, or minimize the impact of the terminations of employment on affected employees and assist them in finding new employmentThe committee must consist of at least 4 members. At least half must represent the affected employees, and the rest representing the employer. The members must hold their first meeting within 2 weeks of when the employer gave the notice to the Labour Program’s Head of Compliance and Enforcement (Head). Within 6 weeks of when the employer gave notice, the committee must complete an adjustment program for affected employees setting out the adjustment measures. In the event of a disagreement between the parties, the employees or employer representative may ask the Minister of Labour to appoint an arbitrator to help resolve the matter. This can be requested: 6 weeks after the employer submitted the notice to the Head, and if the joint planning committee has not completed the adjustment program, or the adjustment program has been developed but some members are not satisfied with the proposed program in part or in whole Calculating the 4 consecutive week periodAs an employer, you must calculate the 4-week period from the date of termination of employment of the first employee in the group whose: employment is to be terminated, and ends 4 weeks after Example 1 Week Number of terminated employments (employees) Week 1 1 Week 2 0 Week 3 0 Week 4 48 Total = 49In the case of example 1, a group termination of employment did not occur because there are fewer than 50 employees affected during the 4-week period. In this example, 49 employees were affected. Example 2 Week Number of terminated employments (employees) Week 1 48 Week 2 49 Week 3 0 Week 4 1 Total = 98In the case of example 2, a group termination of employment occurred because there are more than 50 employees affected during the 4-week period. In this example, 98 employees were affected. Example 3 Week Number of terminated employments (employees) Week 1 1 Week 2 49 Week 3 0 Week 4 0 Total = 50In the case of example 3, a group termination of employment occurred because there are 50 employees affected during the 4-week period. |
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