Uber has announced that it is reducing its workforce by approximately 10%, affecting roughly 3,300 employees globally.
For Uber employees in Canada who are affected by the layoffs, the announcement raises an important question: what are you entitled to when your employment is terminated? The answer is not necessarily limited to the amount stated in an employer’s termination or severance package.
Canadian employees may have rights under applicable employment standards legislation, their employment agreement and, in many circumstances, the common law. Understanding the difference between termination pay, severance pay and reasonable notice is important before accepting a termination package or signing a release.
The Ontario Employment Standards Act, 2000 establishes minimum employment requirements for employees across the province. In addition, employees may be entitled to compensation under the common law, subject to an enforceable contractual provision limiting that entitlement. The assessment of common law entitlements is contextual and is guided by the principles established in Bardal v. Globe & Mail Ltd., 1960 CanLII 294 and precedent case law. These include the character of the employment, the employee’s length of service, age, and the availability of comparable employment.
Employees are entitled to their compensation over the severance period. For many Uber employees, compensation may extend well beyond base salary. That includes:
- Bonuses and incentive compensation
- Restricted stock units and other equity compensation
- Benefits
- Vacation pay
- Commissions
- Pension contributions
- Other contractual compensation
An employer’s termination package may raise questions about not only whether the length of the severance period is sufficient, but the structuring of the offer and whether all aspects of compensation are being extended. Our employment lawyers at Turnpenney Milne LLP can assess the sufficiency of the company’s offer and advise you on next steps.
Should You Sign an Uber Severance Package?
If you have been affected by the Uber layoff in Canada and have received a termination or severance package, consider obtaining legal advice before signing.
Termination packages often include a release, which may limit an employee’s ability to pursue additional compensation or other claims against the employer.
Turnpenney Milne Lawyers can review the package and advise you on your potential entitlements, including:
- Termination pay and severance pay
- Common-law reasonable notice
- Employment standards entitlements
- Bonuses and incentive compensation entitlements
- Equity compensation (RSU, PSU, stock options, etc)
- Employment agreement terms
- Severance package and release terms
- Potential wrongful dismissal claims
Affected by the Uber Layoff in Canada?
If you are an Uber employee in Canada whose employment has been terminated as part of the company’s restructuring, you may have questions about your entitlements and the severance offer.