As the festive season approaches, a time traditionally marked by joy, celebration, and goodwill, it is crucial for employers in British Columbia (and elsewhere) to be mindful of the profound impact that dismissals during this period can have on their employees. Terminating employment around the Holidays can be particularly devastating, not only on a personal and emotional level but also from a practical standpoint, as it can exacerbate the challenges of finding new employment and managing financial obligations during a time of increased expenses. These issues can increase legal liability.
Emotional and Psychological Impact
The Holiday season is a time when many individuals focus on family, community, and togetherness. For those who face the prospect of unemployment, however, the season can become a time of stress, anxiety, and isolation. Losing one’s job can bring about a sense of uncertainty and insecurity, which is only heightened during a time of year that is otherwise meant to be a break from stress and routine. The emotional toll on individuals may include feelings of rejection and failure, impacting their mental health and well-being.
Research shows that job loss can lead to increased rates of depression and anxiety. During the Holiday season, when societal expectations for happiness and cheerfulness are high, these feelings can be magnified and make the emotional burden even heavier. Employers should be aware of this psychological impact and consider the timing of their decisions carefully.
Financial Strain
The Holidays often come with additional financial burdens, such as gifts, travel, and social gatherings, that can strain an individual’s budget even under normal circumstances. For someone who has recently lost their job, these expenses can become overwhelming. They may face difficulties meeting their regular financial obligations, such as rent or mortgage payments, utility bills, and other necessities, let alone affording the extras associated with the Holidays.
Furthermore, the job market typically slows down during the Holiday season, making it more challenging for displaced workers to find new employment promptly. This delay in securing new income can exacerbate financial difficulties, leading to potential long-term economic instability for the affected individual and their family.
Legal Considerations in British Columbia
In BC, employers must adhere to the Employment Standards Act, which outlines the minimum standards for termination notice and severance pay. While these legal requirements must be met when dismissing an employee, employers should also consider the broader implications of their actions beyond the legal minimums, especially during the Holidays. Furthermore, unless there is a written employment in place clearly limiting severance to the minimums of the Employment Standards Act, termination liability can be far higher, and dismissed employees may also seek additional damages for the impact of a Holiday dismissal.
Employers should be mindful of the potential for claims of wrongful dismissal, particularly if the termination is perceived as being conducted in bad faith. The duty of good faith and fair dealing in employment relationships is recognized in Canadian law, and terminating an employee during a particularly vulnerable time could be scrutinized under this duty.
Here are a couple of examples where Canadian courts have awarded additional damages where there was a dismissal during the Holidays:
- Zesta Engineering Ltd. v. Cloutier, 2010 ONSC 5810 (varied on other ground in 2014 ONCA 762), in which the plaintiff was awarded additional damages in part because he was dismissed five days before Christmas;
- In Laliberté v . The Calgary Community School Centre Corporation, 2007 ABPC 324, the Alberta Provincial Court increased the employee’s severance period from three months to five months because he was dismissed without warning shortly before Christmas, and
from within a small francophone community; and
- Horner v. 897469 Ontario Inc., 2018 ONSC 121. In this case, the Court awarded $20,000 in aggravated damages, noting:
[35] In this case, rather than “figuring this out in the new year” as he told the plaintiff he would, the employer immediately terminated the plaintiff’s employment without further discussion and delivered a termination letter during the Christmas holidays by sticking a letter in the back door. The manner of the termination was beyond “cold and brusque”; it was cowardly. The aftermath of the termination for the plaintiff has been discussed earlier.
Best Practices for Employers
To minimize the impact of necessary dismissals, employers should consider implementing several best practices:
- Advance Planning: Consider conducting necessary dismissals at a time of year that is less emotionally charged and when the job market is more active.
- Hold off: Waiting until the new year to carry out a termination of employment if possible. While some rare circumstances may necessitate immediate action (serious employee misconduct), it is likely possible to wait a few weeks to dismiss an employee until the Holidays have passed.
- Enhanced Severance Packages: Offering a more generous severance package than the statutory minimum can help ease the financial transition for affected employees.
- Support Services: Providing access to career counseling, job placement services, and mental health support can demonstrate empathy and support for employees’ well-being.
- Transparent Communication: Open and honest communication about the reasons for dismissal and any potential future changes can help maintain trust and mitigate feelings of resentment or betrayal among remaining employees.
- Voluntary Programs: Offering voluntary retirement or redundancy packages can sometimes help meet organizational needs without the sting of a termination.
Conclusion
While the decision to lay off employees is never easy, the timing of such actions can significantly affect the impact on those involved. By carefully considering the timing and implementing supportive measures, employers can help mitigate the negative effects of dismissals during the Holiday season. This approach not only benefits affected employees but also helps maintain morale and trust within the organization, ultimately supporting a healthier, more resilient workplace culture.
Employers are encouraged to view these considerations as part of their broader commitment to corporate social responsibility, recognizing that their decisions have far-reaching implications for their employees and the community at large. By choosing compassion and foresight, companies can uphold the spirit of the season and foster a more inclusive and supportive work environment.
If you are dealing with a potential dismissal as we get further into December, a little advice can make a big difference. Contact us to discuss; we want to help!
