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Following the reduction of 1,300 positions for office-based employees from its operations in Sweden in May, Volvo announced additional cuts in Canada and the U.S.
The company anticipates the restructuring of Volvo’s U.S. and Canada operations will result in an estimated expenditure of $88 million, encompassing severance payouts and early retirement packages to affected employees.
Volvo Cars is gearing up for a complete transition to electric vehicles by 2030. To do so, Volvo is repositioning its operations to enhance the brand’s competitiveness in the upcoming years. “Volvo Cars plans to further accelerate its ongoing transformation, with an increased focus on its cost optimization and resource efficiency initiative,” said Volvo CEO Jim Rowan.
Volvo Cars USA spokesperson Russel Datz confirmed the company is reducing its operations at the Silicon Valley Tech Center, emphasizing that it will retain a “limited presence.”
This recent development highlights, once more, how important it is for employees to be aware of their rights and the employer’s obligations following a layoff or without cause termination. More specifically, in those situations, the employer has a legal obligation to provide proper notice or compensation in lieu of notice to the employee being terminated.
Laid Off? What can you expect from your severance package?
Before you accept any severance offer, you should have an experienced employment lawyer review it. A lawyer can tell you if you have been provided with a fair severance package and assist you in making informed decisions about your case. At Labour Rights Law, we can assess the strength of your case and provide an estimation of the compensation to which you might be entitled. Moreover, a lawyer can present you with well-informed options, offering clear guidance on the appropriate steps to take moving forward.
A lawyer will likely ask whether you have a signed employment contract. If you do, the lawyer will request to review it. An employment contract often outlines your entitlements in the event of a without-cause termination, such as layoffs due to restructuring or downsizing.
In some cases, the employment contract may stipulate that you are only entitled to the minimum benefits provided by employment standards legislation, such as the British Columbia Employment Standards Act. The contract may also establish a specific formula for determining the notice period or payment in lieu of notice based on your length of employment with the company.
In the absence of any explicit terms in your employment contract regarding notice periods, you may be entitled to common law reasonable notice. In such cases, the amount of notice owed to you can vary and is typically determined by factors such as your length of service with the company, your age, your position, and your salary, among others.
Depending on specific factors present in your case, you could potentially be owed many months’ worth of pay as compensation in lieu of notice. It is important to consult with an employment lawyer to accurately assess your specific circumstances and determine the appropriate amount of compensation you may be entitled to.
Lastly, don’t sign anything until you talk to an employment lawyer. You can’t trust your employer to tell you what is fair, and the Internet is no substitute for experienced, professional legal advice when it comes to your future. When you’re ready to talk with an employment lawyer, we’d be honoured to meet with you. To make an appointment with one of our employment lawyers for a one-hour consultation, provide us with your contact information and let us know what we can help you with.
Read more: How do I know if a severance package is fair?
DISCLAIMER: The content of this article, and this webs/blog/how-do-i-know-if-a-severance-package-is-fair/ite generally, is not intended as legal advice and cannot be relied upon as legal advice. To provide legal advice on your problem, a lawyer must first understand your specific situation.
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