Increase statutory severance

AI summary

Petitioners say employment termination is a serious social and economic challenge and cite Statistics Canada estimates that roughly 4,000–4,200 Canadians lose their jobs daily; they assert many employers offer only statutory minimums rather than higher common‑law severance and describe the Canada Labour Code’s current notice and severance formulas as limited (as set out in the petition). They ask the House of Commons to increase the statutory maximum for pay in lieu of notice to six months and to introduce statutory penalties for employers that routinely underpay severance or use internal contracts with restrictive termination clauses; the petition does not include a government response.

AI summaries describe petitioners’ requests and claims. Consult the official record for the full text.

Official petition

Petition to the House of Commons in Parliament assembled Whereas: Employment termination remains a serious social and economic challenge, particularly for Canadians aged 15 to 60 years old; Statistics Canada estimates that roughly 4,000 to 4,200 Canadians lose their jobs every day; Employment lawyers and labour advocates report that most Canadian employers attempt to undercut former employees and underpay their severance, offering only basic statutory minimums while ignoring much higher common law entitlements; The Canada Labour Code mandates severance pay equal to only two days' wages per year of service, with a minimum of five days' wages; The Canada Labour Code mandates pay in lieu of notice of termination equal to one week's wages per year of service, with a minimum of two weeks' wages and a maximum of eight weeks' wages; The maximum severance under common law is typically 24 months' wages, which is substantially higher than the provincial and federal standards; Many employers purposely rely on the fact that workers are unaware of their entitlement to common law severance and will offer only the statutory minimum, which is much lower; Most Canadians do not have the resources to file a legal claim against an employer, including legal fees of up to $200,000; and Many Canadians suffer from adverse mental health impacts resulting from litigation. We, the undersigned, citizens of Canada, call upon the House of Commons in Parliament assembled to: 1. Increase the statutory maximum to six months for pay in lieu of notice of termination; and 2. Introduce statutory penalties for companies that routinely underpay severance or use internal contracts with restrictive termination clauses that severely limit payouts.

Government response

No government response is available yet.