- April 17, 2024
- Posted by: legaleseblogger
- Category: Related News
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## Unexpected Layoff at the Creative Agency
I have been working as a designer at a creative agency in Toronto for the past two years – one year as a full-time contractor and the other as a salaried employee. Today, I was shocked to find out that I have been temporarily laid off along with the creative director. Unfortunately, as it is a temporary layoff, there is no severance pay involved. After speaking with the owner, it seems that the financial situation of the company is not looking promising, and there is a higher likelihood of it closing down rather than me being rehired.
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## Seeking Severance Pay
The owner mentioned that if you have not returned to work after 90 days, you will be entitled to severance pay. While the amount is unclear, it is essential to be aware of your rights and seek proper compensation for your service.
## Challenges with EI Application
Facing challenges with the EI application process due to website errors can be frustrating. It is crucial to persist in your efforts and try again to access the benefits you are entitled to.
## Planning Next Steps
Given the unexpected turn of events, it is vital to plan your next steps strategically. Despite being caught off guard, consider utilizing the time to focus on your portfolio, update your resume, and explore job opportunities.
## Financial Stability During Transition
While you have saved enough money to sustain yourself for a while, dipping into savings can be disheartening. It is essential to manage your finances wisely during this transition period.
## Freelance Work and EI Eligibility
Your irregular freelance income may impact your eligibility for EI benefits. Understanding the implications of this additional income on your benefits is crucial for financial planning.
## Moving Forward
Considering your upcoming vacation and the need for financial stability, it is important to assess your options and make informed decisions about your career and financial well-being. Seek professional advice and explore resources that can assist you in navigating this challenging situation.
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****** just grabbed a
EI + apply for jobs.
They need to pay out your accrued unused vacation days.
Random thoughts / advice. It’s easy to be upset in this situation. But, do the right things like many people are suggesting, and make sure you enjoy your vacation. Don’t take all this happening personal. Stay positive, be patient and use this as a stepping stone onto the next stage of your career. Do some research, etc. Good luck!
To me it looks like an attempt to stall you while the conveniently liquidate all their assets and disappear / insolvency bankruptcy so even if you go after them there won’t be anything left
You sign the release yet? You should seek advice from an employment lawyer as your certain sounds weird. At least your accrued vacation time should be paid out to you.
EI has interesting implications when working on the side. When you claim on EI they will claw back the EI on that week. If you disclose the income, the will stop paying you until they confirm with you the nature of this income. This can be inconvenient…. It might be best to get paid for those things once you have another job lined up or just settle up at tax season.
You said one year as a contractor and one year as an employee. What order was that in? Did you finish off as an employee?
“Temporary layoff” can be construed as constructive dismissal, I think. Talk to an employment lawyer. The company doesn’t just get the choose that they won’t pay severance. That’s not how it works.
In the meantime, might wanna look at career pivots into areas that aren’t so easily replaced by AI. A lot of graphic design can be done by AI now, as you probably know.
Workplace Sage Legal just helped me get an increased severance. She works on commission and you don’t pay unless she gets an improvement. I recommend speaking with a lawyer 100 percent.
Ask for your severance now. Check with a lawyer. Nortel laid people off and then said oh we will pay your severance in a couple of months next year so you get better tax treatment. The new year came and they declared bankruptcy and did not pay severance…..
You deserve severance now. I wouldn’t wait for that – what if they do bankrupt and end up not paying?
>He did mention that if I have not returned to work after 90 days, I will be due severance pay, which I can’t imagine will amount to much money.
Okay so severance is one of those words that people use to refer to two different things. Legally in Canada an employer must provide you notice even if the layoff is temporary (this is more of a casual term than a legal one). If the employer can’t provide you notice they must provide pay in lieu of notice. You can Google what this is in Ontario but it’s probably 2 weeks.
This isn’t optional they have to pay you. There are rules when they have to pay you I don’t know what they are exactly in Ontario. However to simplify it basically biweekly pay periods always employers to stay in various pay timeline requirements. So this should be paid put by next pay period.
Severance is calculated under common law. There are 4 factors that go into it. When an employer provides you severance they are basically saying please take this and sign someone saying you won’t sue. I guess TECHNICALLY you could get that after 90 days. But giving someone 90 days to talk to a lawyer and build their case kinda defeats the purpose.
>I am scheduled to go on a 3 week vacation on Saturday, which will now not be covered by my vacation pay.
This is not how it works. Vacation is owed to you regardless. Just a side note you are dealing with a profoundly stupid person. They could have tried to give you 2 weeks notice and paid out 1 week vacation. Don’t know if they could have gotten away that. However, now they clearly owe you 5 weeks.
>I also sporadically complete freelance work; I am paid very irregularly, but when I am, it is a larger chunk (2-5k or so). How does this effect EI?
When you are on EI you must make a report every 2 weeks. If you report earnings you will get less money that pay period. You don’t this back later.
>What would you do if you were me?
A lot of what I mentioned is available online very easily in simplified language. I would Google Ontario ESA blank (vacation, layoff notice, ect.). Then I would email the boss and ask for what I am legally do. If not I would immediately make a complaint to the labour board. I’d also ask for a copy of my ROE. You need this in order to apply for EI. A component employer would digitally file it immediately after paying put all money owed to you. But this is not a component employer so you need to make sure they aren’t fucking you around anymore than they already are.
Edit to add: I just wanted to clarify some things about layoff vs temporary layoff. Both of these things do exist in some capacity in various legislations in Canada. That said for the most part they are both not legal terms but rather terms we use in conversation. It’s also a code that is put on you ROE. What you need to know legally is there are only 2 types of employer initiated ways to end employment. Those are termination with or without just cause. Just cause means they have gone threw their defined progressive disapline process and ca prove the employment relationship is damaged beyond repair. If they have just cause they don’t have to give you anything. Without just cause they must give you notice or pay in lieu of notice. Literally 0 other factors matter.
File a complaint with labour board
Once company is out of business you’ll be in line for money with other creditors and it won’t be pretty for you or it’ll be real messy. You might be paid after banks and other creditors, and you’ll get nothing.
Likely the company will have no money left and if it’s limited liability for the owner, owner won’t pay out of pocket for severance.
Get whatever you can now, vacation pay any any severance. Seems like a small company that isn’t following the rules.
Layoff is a layoff.
I would suggest you post in the AskHR sub, please be sure you put your province at the top of your post too. You will likely get a reply from an HR professional who will be able to let you know whether all this is above board
Edit: there may be rights you have to force the issue of severance if you don’t have an employment contract that specifies terms of temporary layoffs – but I’ve been out of HR for a few years and things do change, which is why I suggest the AskHR sub
If there’s concern about the company’s financial stability it may be worthwhile to get severance while it’s available, but only you can judge this, and again only if it is an option for you
Apply for EI asap. Use a different browser or something and keep refreshing until it works.
If you’re going on vacation you have to declare that and you won’t get paid for the days you are out of the country. So might as well try and get your vacation paid out for those weeks .
Your other next step is to stop all voluntary long-term savings payments immediately. Pause contributions to RRSP, TFSA, RESP, etc. People hate doing this because it feels like a step backward but you need to hold onto that money in case you need it for your basic expenses. You don’t actually know how long your unemployment will last. Once you’re back on your feet, you can resume long-term saving and dump any excess straight into those accounts.
I don’t know of you have emails or written details of what they expect of you but I’ve heard employers telling their staff not to come to work then firing them for not coming to work so they don’t have to pay severence. I know it sounds paranoid but I thought I would share
Ok I was in the same situation a few months ago. Don’t know about Ontario but here on B.C the employer cannot temporarily lay off unless you agree to it. They have to give you notice or severance pay equal to your term of employment unless you agree to temporary layoff.
Please check what the rules are for Ontario.
Also if you are laid off all your vacation pay must be paid off in full with your full and final settlement.
Hi OP, really sorry to hear about this – putting aside the legal issues of this, layoff is always difficult. Make sure you take care of yourself too.
From the HR/legal side – please seek a lawyer in your area to provide assistance. Things like temporary layoff, constructive dismissal, etc that are being suggested in other comments can be complex issues. A lot of the advice provided here on these issues has been inaccurate and will not be helpful to you on the long run.
Id start looking for jobs….
I hate scummy employers that do this. They use this as trick to avoid severance. They use temp layoff for 3, 6 or 12 months. Hope you can’t wait around and need money so you get another job, and then they can weasel out of severance, saying you got another job and quit.
Talk to an employment lawyer. Thats sounds sketchy as fuck
Hello fellow designer. Sorry to hear about the tough time.
Update that portfolio, if your vacation booked is refundable or insured, act on that and apply for jobs. Don’t wait for signals from employers and follow everyone’s advice re: employment lawyer inquiries and applying for EI.
Updating your resume doesn’t take long at all, do that now. Presumably you have a portfolio which shouldn’t even be that outdated so don’t let that be an excuse to not use it even if it may not feature ‘your best’. The jobs available now won’t be later so it’s not like you’ll be hitting the same places with the same portfolio in the next year. Expand your job search outside of creative agencies — a lot of the stable job markets for designers are within in-house corporate work; it’s often lower stress and higher paying too. Retail, insurance, banking and finance, government, healthcare, etc. No, it’s not the same as a creative agency if that’s what your heart calls to but my heart calls to money first a la paying my bills, the rest is extra.
If they laid off the creative director and it’s a creative agency… Sounds like they’re just buying time before they close up shop.
Good luck
My dude. I’ve been there. It’s terrifying. But just know you can get through this. It will be okay. Big hugs.
They have to give you severance under Employment act – there is no such thing as temporary layoff.
Fanduel
Just grab a coffe and relax invest in stocks
I also sporadically complete freelance work; I am paid very irregularly, but when I am, it is a larger chunk (2-5k or so). How does this effect EI?
This will cause a delay because you have to report it on the initial form (if you’re still doing this). It will be reviewed to determine whether you are actually unemployed; earnings from it will probably be deducted from payable benefits, when reported, once the claim is finalized.
I worry for this industry. So if I was you I would be looking for work asap. I can only
Imagine what AI type technologies are doing to this industry. My brother in law is in this type of work and work is very thin
So ei, look for work. And good luck
Your boss is trying to scam you. You’re either laid off and they owe you severance immediately, or still employed. Talk to a lawyer
In addition to consulting an employment lawyer (i liked whitten and lublin) would also look into EI and being in the country or out of country given your vacay. I believe while on EI, cannot travel outside of Canada
https://www.canada.ca/en/services/benefits/ei/ei-regular-benefit/while-receiving.html
From what I understand, a temporary layoff can only be done if it’s stated within your employment contract. [So if it’s not there, this may be considered a constructive dismissal.](https://www.ontario.ca/document/your-guide-employment-standards-act-0/termination-employment#section-3)
As for EI and working while receiving benefits,[ it appears the program permits it](https://www.canada.ca/en/employment-social-development/programs/ei/ei-list/working-while-claim.html), although they’ll claw back a portion. Here’s an example from the website.
>John was laid off when the grocery store where he worked shut down. His weekly earnings were $500, so his weekly EI benefit rate is $275 (55% of $500). He has found a part-time job at a restaurant, where he works 3 days a week and earns $300 per week.
>As a result, his $275 in EI benefits are reduced by $150 or 50 cents for every dollar he earns at the restaurant ($300 ÷ 2 = $150). This brings his total EI benefit to $125 ($275 – $150 = $125).
>In the end, John takes home $125 per week in EI benefits plus his part-time wages of $300, for a total of $425.
EI, a little time to relax and refresh, and then kick ass finding another job … don’t stress
They are hoping you find a job within that time frame, if they do something like pay your benefits they can extend it to 35 weeks, they hope that in 90 days they call you back to work but have already found another job so they don’t have to pay you anything.
I am trying to get a loan through AAR How will I hear back about the money
Same thing happended to me at Sun Life, now I’m studying electricity. Trades are the future, office jobs are being replaced by AI and outsourcing.
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