Differences Between Quitting/NSI/Layoff

Can anyone lay out the high level differences in different ways of leaving the company?

As I understand it:

If I quit, there is no severance. I am not eligible for EI. I will receive the full commuted value of my pension?

If I am NSI in a ranking session, I will be given two options. I can resign and take 3 months pay on the spot. Or I can go on a PIP, which is a 3 month plan to improve, after which I will be fired with cause. I'm guessing on the with cause part, but I'm assuming the point of the PIP is to give them a paper trail to call it with cause due to performance? In either case, I'm assuming I am not eligible for EI? I either resign or get fired with cause, which means no EI? Also, I assume after the 3 month PIP I will not receive any severance?

If another round of layoffs come, I could be laid off. I would receive severance, although unsure what it would be. Reading through this forum it sounds like 2-3 weeks per year of service. I would be eligible for EI. Is being fired without cause the same as being laid off? Are they just different words for the same thing?

4 replies (most recent on top)

No PIL in Canada. HR/Law and supervisor decide whether to offer PIP or not (if not then you get fired). If you don’t pass PIP then you get fired. Severance applicable in either case. Always considered being fired without cause. As noted above, only fired with cause if you show up drunk/stoned, caught stealing, committing fraud, getting caught getting reimbursed for buying work boots for your wife etc.

Severance from layoff is same as severance from PIP/fired without cause. Not sure about EI. Prob only eligible after severance period runs out, but not sure.

If you quit, then you don’t get severance.

If you are 48 or 49 with >8-9 yrs service (ie 10 yrs service by 50), then you are NRE (near retirement eligible) and not subject to being fired from NSI. Once you hit 50, you are no longer NRE protected and can be fired (you’ll get your pension value as written in the pension rules/laws).

Severance amount depends on a lot of factors (age, yrs of service, local labor market good/bad etc) but 2-3 weeks per year is a reasonable estimate.

Not all company pay severance package and it’s not mandatory in Canada. However, it’s a normal practice for all larger operating companies to provide severance. Many EPC companies fired long term employees (not contractor) without any severance.

Don’t confuse people with partial information.

You will get severance even if PIP'ed and failed. In Canada, you are entitled to severance, unless they can fire you with cause. The bar for what consitutes cause is very high (e.g. stealing of material value). So, unless you resign, you will be entitled to severance and EI if terminated. If you are age 50+, you may also be entitled to pre-retirement benefits....

You will be eligible for EI if you are fired. It doesn’t matter the reason is except if the termination is due to serious misconduct or criminal offence.

If you leave the job voluntarily, you won’t eligible for EI. However, if you quit the job due to mental harassment ( what Imperial is doing right now), you will be still eligible for EI. You might need some proof for Service Canada. You can check service Canada website or talk with the agent for confirmation.

I don’t want to comment on these bu-----t hilarious items NSI, PIP & PIL.

Thread regarding Imperial Oil Limited layoffs

Differences Between Quitting/NSI/Layoff

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