Employment termination scenarios
The end of employment may follow different scenarios, depending on which party initiates the decision and on the circumstances that lead to the termination of the relationship between employer and worker.
The four scenarios generally considered are:
- Dismissal occurs when the employer no longer requires the services of the worker, whether for economic reasons linked to restructuring or reorganization of tasks, or for technical/technological reasons. Dismissals can also be collective.
- Layoff: A worker’s employment contract may be temporarily suspended for economic, organizational or technical reasons. The employment relationship remains in effect throughout the scheduled layoff period.
- Termination (firing): The employer may permanently dismiss a worker for disciplinary reasons or for reasons related to their ability to perform assigned duties, in accordance with the employer’s right to manage.
- Resignation: A worker may leave their position permanently, provided they give their employer reasonable notice of their intention to resign.
TFW Special
Consequences of termination of the employment contract
To terminate a worker’s employment in the case of a collective dismissal or a layoff exceeding six months, the employer is required to provide written notice of termination, within the time limits prescribed by law.
Dismissals and terminations must be communicated to the worker by a written notice of termination of employment.
The statutory period between the sending of the notice and the worker’s departure varies depending on the length of continuous service:
Notice period : 1 week
Notice period : 2 weeks
Notice period : 4 weeks
Notice period : 8 weeks
Failure to comply with the statutory notice periods obliges the employer to provide financial compensation to the worker concerned. The amount of this indemnity must be equivalent to the regular salary the worker would have earned between the date on which the notice should have been sent and the actual end of employment.
Certain special rules apply in the case of layoffs: any termination notice issued during a layoff is invalid, except in the case of seasonal employment not exceeding six months per year. Similarly, the payment of the indemnity may vary according to several factors (length of the layoff, existence of a right of recall).
Some workers are not covered by the requirement to provide notice of layoff lasting six months or more, nor by the obligation to provide notice of termination of employment:
- Workers with less than three months of continuous service;
- Workers who have committed serious misconduct;
- Workers dismissed or laid off due to force majeure;
- Workers whose contracts are coming to an end;
- Workers who have completed the specific task for which they were hired.
In the event of resignation, the employer must pay the worker all amounts owed. The employer must also provide the outgoing worker with a record of employment, indicating in particular the number of insurable hours worked.
The employer must also pay the worker all sums owed, including salary, overtime pay and vacation pay.
Finally, in the case of resignation, the worker is not bound by any strict formal requirements regarding notice. Under the Civil Code, a “reasonable period” must be observed between the notice of resignation and the actual departure from the business.
Employment insurance
To be eligible for employment insurance (unemployment), a worker must meet certain conditions:
Have held insurable employment and worked the required number of hours (between 420 and 700 hours);
Have lost their job through no fault of their own (resignation disqualifies them from receiving employment insurance);
Have not worked for at least 7 consecutive days within the last 52 weeks;
Be able and available to work;
Be actively seeking work and be able to prove it. Workers can apply online to check their eligibility and, if necessary, validate their registration for employment insurance benefits. Ideally, the application should be submitted within four weeks of the last day of work, otherwise benefits may be lost.
The amount of benefits can be up to 55% of earned income, over a period ranging from 14 to 45 weeks.
The duration of benefits depends on the regional unemployment rate where the worker lives at the time of application, and the number of insurable hours worked during the previous 52 weeks (or since the start of the last application).
