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Friday, November 28, 2025

Howard Levitt: When employers play games with severance packages, they often lose - Financial Post

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In our practice, we consistently run across employers who simply are not getting the message. When you terminate an employee, you have to pay them reasonable notice.

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We have written about this frequently, and yet, in the last two months alone, we have settled many cases where the employer simply terminated an employee with completely inadequate notice and severance.

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FP Work touches on HR strategy, labour economics, office culture, technology and more.

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Employers have to realize that the law specifically recognizes that employment contracts, written or unwritten, are treated differently under the law in Ontario — and the rest of the country for that matter. The courts recognize that in an employment situation, the employer typically has all the power, not the employee. As a result, to correct this perceived imbalance, the law is biased in favour of the employee.

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If an employer provides inadequate notice, or attempts to allege cause — particularly after acquired cause (i.e., cause learned after the fact, without merit) — they are going to get a rude awakening if their case goes to court.

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Likewise, if the employer treats the employment contract like any other contract with a vendor or a supplier, they are going to have a shock. The courts treat employment contracts very differently than they treat commercial contracts. Any ambiguity in an employment contract will be...



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