Laid Off by Oracle in Canada? Here Is Why the First Offer May Not Be Enough

An estimated 30,000 employees of American tech giant Oracle woke up Tuesday morning to an email advising that their employment had been terminated effective immediately. Sent at 6 a.m., the message triggered the largest layoff in the company’s history and affected employees around the world, including in the United States, India, Mexico, and Canada.

For terminated Oracle ex-employees in Canada, while this may be unwelcome news, the silver lining is that they may be owed more than they think. At Levitt LLP, we have represented employees for decades in some of the most significant termination and wrongful dismissal matters in Canada. Our firm has long advised workers facing mass layoffs, abrupt terminations, and inadequate severance offers from large employers. When a company like Oracle cuts thousands of jobs at once, affected Canadian employees should understand that the package put in front of them may be far less than what the law actually requires. As a matter of fact, employees may be owed up to 30 months’ compensation, for all aspects of their compensation package with Oracle.

Although Oracle is an American company, Canadian workers remain protected by Canadian employment law. Their rights are governed by the law where they work, not by the company’s head office.

That means Oracle’s Canadian employees do not have to accept the minimum package offered by the company. They should avoid signing any termination documents before fully reviewing their options with an employment lawyer. They should also keep in mind that any deadline set out in the termination letter is chosen by the employer. It is not a legal deadline, and there is no obligation to sign away rights within the time the company demands.

For employees affected by Oracle’s mass layoffs, the termination may amount to wrongful dismissal. That means Oracle, or any other employer, has failed to provide the full notice or pay in lieu of notice that the employee is legally owed.

There are many reasons a termination may be wrongful. One of the most common is an unenforceable termination clause in the employment agreement. Employers often rely on those clauses to limit severance obligations, but where the clause does not comply with Canadian employment law, it may be void and unenforceable.

When that happens, the employee may be entitled to common law severance, which can be significantly greater than the package initially offered by Oracle. It may also include all parts of an employee’s compensation, including:

  • Base salary
  • Bonuses
  • Benefits
  • RRSP or pension contributions
  • Stock options
  • Vacation pay
  • Other forms of incentive compensation, such as access to a work phone or car

The amount an employee may be entitled to depends on several factors, including their age, position, compensation, and length of service. In some cases, employees may be owed as much as 30 months of compensation.

Oracle’s termination package is only an opening offer, and it should be treated that way. It is rarely the full extent of what a terminated employee may be entitled to receive. Speaking with an expert employment lawyer at Levitt LLP can help employees determine whether they have a wrongful dismissal claim and, if so, what Oracle may actually owe them.

For Oracle employees blindsided by these layoffs, this is the time to assess their options, understand their rights, and make sure they receive what they are truly owed. We can help.