The Financial Side of Getting Laid Off

[AllWellAndGood]

So I've been hearing of more than a few Big Law firms that have had limited layoffs, usually junior corporate associates. As a junior corporate associate myself... I'm obviously wondering how layoffs occur and what comes next.

As I have come to understand, despite the fact that lawyers are not regulated under the employment standards act (at least here in BC) it is often customary for law firms to provide a severance. I've heard of 6 weeks and 12 weeks recently. I suppose that since we pay into EI we are also eligible to claim EI (even if I always heard people say we weren't eligible since we could become SPs any day...).

Does anyone have any real details on how layoffs work, by law and in practice, and how to prepare myself for the possibility?

[Ramesses]

What's a limited layoff?

I know a junior associate at a big firm who was fired a few months back and I think he was kept on the payroll for 2.5 months. After that he applied for EI while job searching. 

In terms of preparing, you can start save up more and build your network so you are ready if you do get laid off. But honestly, focus on what you have now and do good work for people in your firm and make yourself valuable. 

[scooter]

My practical advice is to make sure you have copies of important documents/communications - employment contract, paystubs, performance reviews, benefits packages, etc. (Good idea even for people who don't think they'll be laid off - you start to take for granted how much you rely on your work computer and email, until your access is suddenly cut off)

If you do get laid off...

1. Don't sign anything in the heat of the moment
2. Go speak to an employment lawyer

[AllWellAndGood]

16 hours ago, Ramesses said:

What's a limited layoff?

I know a junior associate at a big firm who was fired a few months back and I think he was kept on the payroll for 2.5 months. After that he applied for EI while job searching. 

In terms of preparing, you can start save up more and build your network so you are ready if you do get laid off. But honestly, focus on what you have now and do good work for people in your firm and make yourself valuable. 

Sorry, by limited layoffs I meant to suggest I've only heard a few firms and even they were only letting a handful of people go. I phrased it to try and minimize the risk of creating a sense of fear in anyone reading.

 

Thank you for the info and advice!

8 hours ago, scooter said:

My practical advice is to make sure you have copies of important documents/communications - employment contract, paystubs, performance reviews, benefits packages, etc. (Good idea even for people who don't think they'll be laid off - you start to take for granted how much you rely on your work computer and email, until your access is suddenly cut off)

If you do get laid off...

1. Don't sign anything in the heat of the moment
2. Go speak to an employment lawyer

That's a smart idea, all of that is saved on my work laptop only...

[BlockedQuebecois]

8 hours ago, scooter said:

If you do get laid off...

1. Don't sign anything in the heat of the moment
2. Go speak to an employment lawyer

That’s obviously good advice to give basically any layperson that has been fired, but most big law associates who are fired (and it sounds like everyone here is talking about being fired more than being laid off) don’t necessarily need to seek legal advice in this situation. 

Big law firms tend to be generous when they’re letting people go, keeping the individual on the payroll for longer than their statutory or common law notice entitlements would be and trying to help them land on their feet. 

And unlike most laypeople, lawyers have the tools and expertise necessary to determine if they’re being treated poorly enough to warrant seeking legal advice. 

[Bob Jones]

On 8/22/2023 at 11:08 PM, AllWellAndGood said:

So I've been hearing of more than a few Big Law firms that have had limited layoffs, usually junior corporate associates. As a junior corporate associate myself... I'm obviously wondering how layoffs occur and what comes next.

As I have come to understand, despite the fact that lawyers are not regulated under the employment standards act (at least here in BC) it is often customary for law firms to provide a severance. I've heard of 6 weeks and 12 weeks recently. I suppose that since we pay into EI we are also eligible to claim EI (even if I always heard people say we weren't eligible since we could become SPs any day...).

Does anyone have any real details on how layoffs work, by law and in practice, and how to prepare myself for the possibility?

Lawyers are still eligible for severance pay and other protections at common law FYI, so they would still get a package like anyone else.