The Biggest Mistake U.S. Employers Make
Canada does not recognize at-will employment.
Terminating an employee without notice can result in:
- Statutory penalties
- Common law severance
- Wrongful dismissal claims
Two Layers of Termination Law
1. Statutory Minimums
Each province mandates minimum notice periods.
2. Common Law Notice
Courts often award months of severance based on:
- Age
- Role
- Length of service
- Re-employment prospects
Common law can exceed statutory minimums significantly.
Example
A mid-level employee with 3–5 years of service may be entitled to several months of pay — far beyond ESA minimums.
Additional Risks
- Improper documentation
- Bad faith dismissal
- Failure to provide benefits continuation
- Human rights complaints
Why Compliance Matters
Termination risk is one of the largest financial exposures in Canadian employment.
An Employer of Record ensures:
- Proper documentation
- Compliant notice
- Correct payroll calculations
- Legal alignment
Final Thoughts
If you are expanding from the U.S., assume employment laws differ materially.
Before terminating a Canadian employee, consult Canadian HR and legal experts.
Syndesus provides compliant Canadian employment and payroll support to help U.S. companies avoid costly termination mistakes.