Canadian and US employment standards are different, including the Canadian requirement that employers must give employees at least statutory notice of termination, says Mitch Frazer in Financial Post

Don't Lump Canada in with U.S., Buyers Told

September 21, 2011

Many European and Asian business people may see Canada as is USA North, but there are, of course, distinctions.

One critical distinction lies in the law regarding termination of employment. "Canadian employers must give employees at least statutory notice of termination, and employees may well be entitled to more under the common law or the contract of employment," says Mitch Frazer. "In the U.S., employment is generally 'at will' with notice required only under the terms of a contract or company policy."

The upshot is that severance plans or policies, not uncommon in the U.S., are rarely found in Canada because they represent a floor on severance pay, subject to statutory rights or reasonable notice.

"There's really not much point in standardized severance plans in the context of the Canadian regime," Mitch says.

Read the full article here.

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