The Short-Circuit: What You Need to Know

Healthcare workers at Hamilton Health Sciences (HHS) and St. Joseph’s Healthcare Hamilton are the backbone of our community. However, even the most dedicated nurses, technicians, and administrators are not immune to the realities of budget reallocations and organizational restructuring.

When a role is eliminated at a major Hamilton hospital, employees are often handed a "standard" severance offer and a short deadline.

Fast Answer (TL;DR):

• Non-union employees (managers, clerical staff, specialized techs) are frequently entitled to Common Law severance, which can be 5 to 10 times higher than the "standard" offer.
• Unionized employees must follow the grievance process in their collective agreement (ONA, CUPE, OPSEU).
• The "Waksdale" Effect: Many hospital contracts contain termination clauses that are legally "void," meaning you could be entitled to significantly more money than your contract suggests.
• Action: Do not sign any release or severance package without a legal review.

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What Is Severance Under Ontario Law?

In Ontario, "severance" is a broad term that actually encompasses two distinct legal layers. Understanding the difference is the key to ensuring you aren't underpaid.

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1. ESA Minimum Entitlements (The Baseline)

The Employment Standards Act (ESA) sets the floor. Hospitals like HHS and St. Joe’s, with their massive payrolls, almost always trigger these requirements:

• Termination Pay: 1 week of pay per year of service (max 8 weeks).
• Severance Pay: An additional 1 week per year (max 26 weeks) for those with 5+ years of service.
• Total ESA Maximum: 34 weeks.

2. Common Law Severance (The Reality)

For non-unionized staff, the ESA is only the beginning. Unless you have a bulletproof employment contract, you are entitled to "Reasonable Notice" under Common Law.

Courts calculate this based on:

• Your Age: Older employees (especially those 50+) are awarded more because finding a new role in a specialized healthcare niche is harder.
• Length of Service: Decades of service at a Hamilton hospital are viewed as a "career commitment" that deserves a substantial payout.
• Specialized Skills: A specialized MRI tech or a high-level hospital administrator has a smaller "job pool" in Hamilton than a general administrator, leading to longer notice periods.

📍 Example: A 58-year-old non-union manager with 20 years at St. Joe’s might be offered 26 weeks by the hospital. Under Common Law, a judge might award 18 to 24 months of total compensation.

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Unionized vs. Non-Union: Two Different Worlds

Hamilton’s healthcare sector is a mix of unionized and non-unionized roles. Your legal path depends entirely on your classification.

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Unionized Employees (ONA, CUPE, OPSEU, SEIU)

If you are a member of a union, your rights are dictated by your Collective Agreement.

• Severance: Payouts are usually fixed by a formula in the agreement.
• Process: You cannot sue in court for wrongful dismissal. You must work with your union rep to file a grievance.
• Bumping Rights: You may have the right to "bump" a more junior employee in another department to keep your job.

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Non-Union Employees (Management, Specialized Staff, IT, HR)

If you are not in a union, you are governed by your Employment Contract and Common Law.

• Wrongful Dismissal: If you are let go without "Reasonable Notice," you can sue in civil court.
• The Contract Trap: Many hospital contracts try to limit you to only ESA minimums. However, recent landmark cases like Waksdale v. Swegon North America have made many of these clauses unenforceable. Even a small drafting error in the "for cause" section of your contract can "void" the entire termination clause, opening the door to months of extra pay.

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What Makes a Healthcare Severance Case Strong?

Not every termination leads to a massive payout. We look for specific "strength indicators" in Hamilton healthcare cases:

• Long-Term Service: 10+ years of tenure significantly boosts the "Bardal factors."
• Age as a Barrier: If you are nearing retirement age, the law recognizes that a hospital reorganization has a more devastating impact on your career.
• Niche Roles: If your role is so specialized that the only other employer in town is HHS (if you were at St. Joe’s) or vice versa, your "availability of similar employment" is low, which increases severance.
• The "Inducement" Factor: Were you "headhunted" from a secure job in Toronto or London to come to Hamilton? If so, your severance may be higher to compensate for the lost security of your previous role.

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How Severance Is Actually Calculated

A fair severance package is about more than just your base salary. It should reflect your entire compensation package, including:

1. Base Salary: Your weekly or monthly gross pay.
2. Benefits Continuation: Hospitals must continue health and dental benefits during the statutory notice period (and often pay out the value for the common law period).
3. Pension Contributions: For many HHS and St. Joe’s workers, the HOOPP (Healthcare of Ontario Pension Plan) is their biggest asset. Severance must account for the loss of pension contributions during the notice period.
4. Vacation Pay: Any accrued but unused vacation must be paid out.

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What To Do If You Receive a Severance Package

If you are pulled into a meeting and handed a termination letter, follow these steps:

Step 1: Stay Calm and Listen

You do not have to defend your performance or argue the decision in the room. Take the paperwork and leave.

Step 2: Respect the Deadline (But Don't Fear It)

Hospitals often give a 5-to-7-day deadline to sign. This is a "tactic" to create urgency. In almost all cases, this deadline is flexible, and an employment lawyer can request an extension while they review the offer.

Step 3: Check for "Release" Language

The most important document is the Full and Final Release. Once you sign this, you lose the right to sue for more money or raise human rights claims. Never sign this without a lawyer’s sign-off.

Step 4: Map Out the Geography

If your severance offer includes "Outplacement Counseling" in another city, or if the hospital suggests you can easily find work in Toronto, remember that you are a Hamilton professional. The "market" for your skills is here, and severance should reflect the local job market.

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Deadlines and Strategy

In Ontario, you generally have 2 years to file a wrongful dismissal lawsuit. However, waiting is rarely a good strategy.

• Negotiation Power: Your leverage is highest immediately after the termination.
• Mitigation: You have a "duty to mitigate," meaning you must look for a new job. If you find a new job quickly, your potential "damages" from the hospital might decrease. It is often best to settle the severance issue before you start a new role.

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FAQ: Hamilton Healthcare Severance

1. Can my hospital use "funding cuts" as a reason to pay less severance?

‍No. While funding cuts are a legal reason to terminate an employee (a "layoff"), they do not exempt the employer from paying the full Common Law notice period.

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2. I have a 1-year contract. Do I still get severance?

‍If you are on a "fixed-term" contract and you are let go early, you may be entitled to the entire remainder of the contract pay, unless there is a valid termination clause that says otherwise.

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3. Is my HOOPP pension affected?

‍Yes. Termination stops your pension accrual. A proper severance settlement should include a "pension loss" component to compensate for the employer's missed contributions.

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4. What if I am offered a "comparable" role at another HHS site?

‍If the role is truly comparable (same pay, same seniority, same commute), refusing it might be seen as a "failure to mitigate," which could kill your severance claim. Always have a lawyer compare the two roles first.

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Conclusion: Protect Your Career and Stability

You’ve spent years caring for Hamilton. When your role ends, it is time for the law to care for you. Whether you were an administrator at the Juravinski, a tech at St. Joe’s West 5th, or a manager at the General, your rights are protected by Ontario law.

Before you sign away your rights, let us ensure you are getting the full value of your service.

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