Question Period Note: GROUP TERMINATION – PART III OF THE CANADA LABOUR CODE – The Bank of Nova Scotia

What is the Government doing to protect the rights of workers who lose their jobs at The Bank of Nova Scotia?

• It is unfortunate when Canadian workers and their families are affected by job losses.

• The Labour Program protects the rights and labour standards of employees covered under the Canada Labour Code (the Code), notably in the event of a termination of employment.

• When employers are planning to terminate the employment of 50 or more employees, they must notify the Labour Program in advance. They are also to establish a joint planning committee to minimize the impact on affected employees, if possible.

• An employer may seek a Ministerial waiver of certain obligations, and this may be granted if the employer demonstrates that they met the requirements of the Code.

• The Labour Program monitors group termination cases to ensure that all affected employees receive their labour standards entitlements. Unfortunately, the Labour Program is not in a position to prevent the job losses.

• The Labour Program has completed its investigation into the group termination at the Bank of Nova Scotia and has confirmed that the employer is meeting its obligations under the Code.

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Group Termination Provisions:

The group termination provisions, as defined in Division IX of Part III of the Canada Labour Code (the Code), stipulate that an employer who intends to terminate the employment of 50 or more employees in any single industrial establishment within a four-week period, must give written notice to the Head of Compliance and Enforcement, the Canada Employment Insurance Commission (CEIC), associated unions and any affected employees not represented by a union at least 16 weeks before the termination date.

The employer must also establish a joint employer-employee planning committee. The mandate of this committee is to find ways to minimize the impact of the group termination of employment on affected employees, and if possible, to avoid the necessity of terminating the employment.

The Code allows the employer to request waivers to certain requirements, namely to:

1. Provide the Head of Compliance and Enforcement with 16 weeks’ notice;
2. Provide employees a statement of benefits in writing; and,
3. Establish a joint planning committee.

To be granted a waiver as per Section 228, the application must show that the requirement to provide notice, to provide a statement of benefits, or to establish the joint planning committee:

1. would be or is unduly prejudicial to the interests of the employees;
2. would be or is unduly prejudicial to the interests of the employer of those employees;
3. would be or is seriously detrimental to the operation of the industrial establishment; or
4. is not necessary, because measures for the assistance of redundant employees at that establishment are substantially the same or to the same effect as the measures established by the Code or by the collective agreement.

The Minister may grant or deny a waiver application based on whether there is evidence to demonstrate that the above criteria have been met.

In addition, whether there has been a group termination, an employer must provide at least two weeks' written notice of termination or two weeks' pay in lieu thereof to all employees with at least three consecutive months of continuous employment and, for employees who have completed at least three years of employment, provide written notice equivalent to at least one week per year of employment, up to a maximum of eight weeks of notice or pay in lieu of such notice.

Furthermore, the Code stipulates that any employee whose employment is being terminated and has completed at least twelve consecutive months of continuous employment shall, unless dismissed for just cause, be paid severance pay equivalent to two days' wages for each year of employment or five days' wages, whichever amount is the greater.

Where employees are affected by a group termination, in accordance with the Code, and are covered by a collective agreement, which contains provisions that are at least as favourable as those found in the Code, the collective agreement provisions prevail.

Complaint from Worker(s):

• When there is a complaint from a worker(s) affected by a loss of employment, Labour Program officials will investigate to ensure that the individual receives all identified outstanding entitlements, such as severance pay, termination pay, payment of outstanding wages, as well as overtime and vacation pay.

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