Increase federal termination pay
Petitioners ask the House to amend the Canada Labour Code to raise the statutory maximum termination pay to six months and to penalize employers who routinely underpay severance or use restrictive termination clauses.
Why we would sign this petition
- Increases guaranteed cash for dismissed workers by raising the statutory maximum to six months, reducing immediate financial insecurity after job loss.
- Adds penalties that deter employers from routinely offering only statutory minimums or using restrictive contract clauses, improving compliance with fair severance standards.
- Makes statutory entitlements more meaningful, lowering reliance on costly common-law litigation to obtain fair severance for workers who lack legal resources.
Why we wouldn’t sign this petition
- Raising the cap to six months could increase labour costs for employers, which may affect hiring or financial viability, especially for small businesses.
- A new statutory maximum and penalties could create legal uncertainty or overlap with existing common-law entitlements, prompting more disputes over appropriate compensation.
- Penalties and enforcement may be difficult or costly to implement; alternatives such as better access to legal aid or clearer information on common-law rights might address underpayment more efficiently.
The summary and both sets of reasons are AI-generated from the petition and given equal weight. Claims are the petitioners’ own; 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.