Canadian Pacific Railway LAYOFFS – Know your Rights

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Canadian Pacific Railway is Canadian Pacific Railway (CP) operates a transcontinental railway network spanning Canada and the United States, connecting ports on the west and east coasts. The company provides a variety of transportation services, including freight shipping and logistics solutions, catering to diverse industries across North America.

Have you been recently dismissed or let go from your employment with CP?

Speak to JPak Employment Lawyers. Our employment law expert lawyers have successfully advised and represented over a thousand employees who have been dismissed or laid off.

The following are frequently asked questions by CP employees facing termination: 

Can CP terminate my employment without cause? Is this an unjust dismissal?

The Canada Labour Code provides federal employees with protection from being dismissed without cause. Terminations without cause are generally prohibited and are considered an “unjust dismissal” within the meaning of section 240 of the Canada Labour Code.   

The onus is on the Company to show why dismissal is justified. For example, CP may show just cause for dismissal due to serious misconduct, or that it is terminating the employee for lack of work, or other reasons permitted by statute.  

CANADIAN PACIFIC RAILWAY

Is the severance package being offered by CP in accordance with your legal entitlements?

Separate from the above, you will want to verify that CP has provided a severance package commensurate with your legal entitlements. Whether the severance package is fair from a legal perspective will generally depend on a number of considerations, including: the character of your employment, length of service, your age at termination, the availability of comparable jobs in the labour market, your contract of employment, and whether you were induced to leave secure employment.

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CANADIAN PACIFIC RAILWAY

What about my LTIP/STIP/options, RSUs or other equity?

If you have been provided with a severance package, carefully review it and determine what happens to your current fiscal year bonus. Are you receiving incentive compensation for the period of the fiscal year that you actively worked? Further, has CP properly taken short-term and long-term incentive compensation into consideration in evaluating your severance?

It is common for companies to cancel outstanding and unvested equity compensation upon termination. However, if that occurs, CP may be required to compensate you for the loss of unvested equity compensation, whether or not you are actively employed on the vesting date.

CP is stating that the reason for termination is due to downsizing/restructuring, but I feel that I was singled out. What are my rights?

An employer may state that the reason for layoff is ‘downsizing’ or ‘restructuring’, but if you believe this to be false, you may be entitled to compensation. The dismissal may be considered an unjust dismissal under the Canada Labour Code, and further, if CP is not acting in good faith, fairly or transparently in the manner of dismissal, you may have additional compensatory relief. It is prudent to speak to an employment law expert to find out what remedies and options are available.

Must CP provide the reasons for my dismissal?

In short, yes. If CP does not provide you with reasons, you can ask for those reasons in writing, and CP must comply within 15 days of the written request for reasons. This is required by section 241(1) of the Canada Labour Code.

Canadian Pacific Railway

CP says it has just cause for dismissal? Do I have any recourse?

Even if CP is asserting “just cause” for dismissal, from a legal perspective, the Company may not have true just cause for dismissal. Cause for dismissal is generally considered the capital punishment of employment law and is reserved only for very serious cases of wrongdoing or neglect of duty.    

Most instances of poor performance or employee misconduct do not rise to the level of “cause-worthy” conduct within the meaning of the Canada Labour Code or the common law.     

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Should I sign a release provided by CP?

Generally, an employer will ask a departing employee to sign a release in exchange for the severance package. It is important that if you are being asked to sign a release, that you get advice on the package, the lawfulness of the dismissal, and your rights before you sign anything. Once you sign a release, you are generally forfeiting your right to pursue any further compensation or legal claims. 

I am a unionized employee, what are my rights?

If you are a member of a bargaining unit, you should speak with your union representative about your rights under the applicable collective agreement. Typically, a collective agreement will contain provisions pertaining to layoffs, bumping and seniority rights and may also include provisions pertaining to your termination entitlements. In the context of downsizing or layoffs, an employer may be required to follow a “first in, last out” protocol. If your employer does not comply with the collective agreement requirements, the Union may file a grievance on your behalf.

Speak to one of our employment law experts

Speak to one of our Toronto employment lawyers to find out if your case qualifies as an unjust dismissal, whether the severance package is fair and whether you may be entitled to additional compensation. Contact us today.

Disclaimer: The materials above are for general information purposes only. This is not legal advice. This is not specific to any one company. This does not suggest any improper conduct on the part of a specific employer.

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