Hi there. So it’s March 6th and it sounds like we may have a little bit of a reprieve as just today, Governor Trump has announced that he is pausing some of the tariffs that he intended to impose on Canadian goods. So I want to post this message now because we’re talking to a lot of our clients and we know that a lot of them are worried and uncertain about what this trade war could mean for them and their business.
And they’re starting to talk about cutting their labour costs and what they can do. We want to make sure nobody does anything without understanding how the laws work. So first of all, if you’re a business owner or business leader and you’re thinking about putting some workers on temporary layoffs, don’t do it without getting legal advice.
You probably don’t have the right, and if you put them on a temporary layoff, that’s a constructive dismissal, and they’re entitled to severance. We’re still dealing with those cases from COVID lockdowns, when so many businesses assumed they could put people on temporary layoff. If you’re thinking about cutting people’s hours, don’t do it.
You probably don’t have the right. That’s also a constructive dismissal. If you’re thinking about letting people go, don’t assume that your severance is minimal. It might be a lot more than you think. Even if you have a termination clause in your contracts, as we talk about extensively on our social media and our blogs, most termination clauses are not enforceable based upon the current state of the law.
The bottom line is, don’t do anything without getting proper advice from an employment lawyer. And if you’re an employee, and you are put on a temporary layoff, or your hours are cut, or you’re let go, make sure to speak with an employment lawyer and understand your rights because you may have a significant entitlement.
The bottom line here is we do not want to see you after you’ve already taken action. We want to talk to you before you do and make sure that you understand your rights and your obligations. Before you act, we always say this, it costs a lot less to prevent the problem than it does to fix it. Or as my grandmother used to say, an ounce of prevention is worth a pound of cure.
So please keep on top of this. We’re going to see what happens with the tariffs, but either way, make sure you understand your rights before you take action. That’s all for today.
