Termination or permanent layoff

The termination or permanent layoff is the final breakdown of the employment relationship by the employer for one of the following reasons:

• Economic reasons, such as financial difficulties or decline in revenues;
• Organizational reasons, such as a reorganization resulting in the abolition or merging of positions; and
• Technical reasons, such as technological innovations.

An employer terminates or lays off an employee when the latter's services are no longer needed. The decision of the employer is based in particular on objective criteria, such as performance, skills, versatility and seniority.

Termination or permanent layoff by an employer can be collective or individual, which aims one single employee. For its part, the collective dismissal occurs when an employer terminates the employment of 10 or more employees of the same establishment over a period of two months or lays off at least 10 employees of the same establishment for a period more than 6 months. A notice of collective dismissal must then be sent by mail.