Layoff and separation practices

What is the effect of separations initiated by the employer for economic reasons on the employability of workers? Layoffs are often the starting point in a transition period. The conditions under which this event takes place are critical to the success of the transition.

The Task Force on Labour Adjustment has addressed this issue in a way that is fully supported by us. It recommended:

There should be minimum standards in all jurisdictions for notice of layoff and severance pay with respect to individual layoffs, and for group layoffs in two categories, namely, where greater than 10 but less than 5O, and greater than 50 workers are displaced. However, the varying situations of employers in the different provinces and territories, the total additional costs to business and industry of increasing the magnitude of severance payments, and the length of notice of layoff periods need to be recognized. [Recommendation 3]

Educational and skills upgrading are needed for increasing numbers of displaced workers, many of whom have worked for the same company or in the same industry for most of their lives. Improved employability through literacy training, academic upgrading, or skills training is a key to their successful and rapid re-employment after being laid-off. Thus, it is recommended that a new program to assist these workers to receive training for employment in alternative vocational area, or to upgrade existing skills while still on the job prior to layoff, be introduced. A means of doing this is to provide counselling and training, under an agreement with employers, for one or two days a week, with employees working regular hours the remainder of the week UI income support would be provided during the training/counselling days, and the employer would pay salaries for the rest of the week [Recommendation 14]

By providing access to counselling and training to workers who are to be laid off, employers help them make a transition into other employment under better conditions. Employers must notify people of layoff to allow reasonable time and opportunities to prevent major loss of income.