Serving notice in economic dismissals

Dismissing employees for financial reasons may be justified but could lead to greater notice requirements in a poor job market
By Nikolay Chsherbinin
|Canadian Employment Law Today|Last Updated: 09/09/2009

More notice to cut payroll

One of the most common solutions companies consider during an economic downturn is cutting staff, something that’s been quite evident from the hundreds of thousands of jobs that have been lost in the recent recession. Sometimes this course of action is chosen among several cost-cutting options or sometimes there’s no other option. Either way, it’s important for employers to consider how much the same economic conditions that lead to job cuts affect fired employees’ chances of finding another job. If the pickings are slim, it could mean the employer is on the hook for a larger notice period or severance package.