Understanding the difference between layoff and dismissal

In Quebec, layoff and dismissal are two terms that have distinct legal meanings. While layoff is the unilateral termination of an employment contract by the employer, usually for economic or organizational reasons, dismissal is considered a disciplinary measure taken by the employer in response to misconduct or unsatisfactory performance by the employee. Employers must follow legal procedures and respect the rights of employees in cases of termination or dismissal, and employees also have recourse if they feel they have been dismissed without justifiable reason.

In this post, we will explore in more detail the differences between layoff and dismissal in Quebec, as well as the different forms of dismissal, including dismissal with cause and disguised dismissal.

This blog post should not be considered legal advice. Its purpose is to provide general information. For legal advice tailored to your particular situation, we recommend consulting a legal professional.

Layoff

In Quebec, layoff is defined as the unilateral termination of an employment contract by the employer for reasons independent of the employee. Termination may occur for economic reasons or due to changes in the organization of the company, but it must always be justified by serious and legitimate reasons. In all cases, the employer must follow legal procedures and respect the rights of the employee, such as the right to notice, severance pay, and potentially, access to a career transition program.

Here are some examples of termination contexts in Quebec: :

Economic Termination: If a company is facing financial difficulties and needs to reduce its workforce to survive, it may need to terminate employees for economic reasons. This could be due to a decrease in demand, increased competition, fluctuations in exchange rates, etc.
Termination due to Changes in Company Organization: If a company needs to undergo structural changes such as reorganization, merger, acquisition, or relocation, it may need to terminate employees.

IIt is important to note that regardless of the context of termination, the employer must comply with the labor laws and regulations in force in Quebec and respect the rights of employees.

Dismissal

In Quebec, dismissal is the unilateral termination of an employment contract by the employer for disciplinary reasons or reasons related to the employee's behavior or performance. Unlike a layoff, which is related to circumstances independent of the employee's actions, dismissal is often considered a disciplinary measure in response to misconduct by the employee. Employers must also follow legal procedures and respect the rights of employees in the event of dismissal. It can have significant legal and financial ramifications, which is why it is essential for companies to carefully document the dismissal process, including the reasons justifying the decision, discussions with the employee, and measures taken to minimize harm to the employee.

Dismissal with Cause

Dismissal with cause is a disciplinary measure taken by the employer in response to inappropriate behavior or unsatisfactory performance by the employee. This means that the employee is terminated without notice and without severance pay because they have committed a serious offense or violation that justifies immediate dismissal.

Cause may include behaviors such as theft, harassment, workplace violence, breach of confidentiality, negligence, or financial misconduct, among others. The employer generally needs to prove that the offense occurred, either through witnesses, video or audio recordings, documentary evidence, or other means of proof. Similarly, insufficient performance despite repeated warnings can constitute cause for dismissal.

It is important to note that dismissal with cause must be based on serious and legitimate grounds, and employers must follow legal procedures to ensure their decision is justified.