Brought to you by CFEE Canadian Foundation for Economic Education

Jobs / Business

Being fired

There are a number of terms used to describe when a worker has lost his or her job.A worker who is fired, or terminated, loses his/her job because the employer decides that the worker has not done a good job, has made a serious mistake, or has done something illegal. You can also be “let go” if you do not meet the terms of your contract—or if the company no longer requires your position. An employer must have a good reason for firing an employee. If there is not a good reason, the employee can claim “wrongful dismissal” and take the employer to court.

Canada’s labour force

Canada’s labour force is made up of all the people who are 15 years of age or older and who are either employed or unemployed.According to Statistics Canada, Canada’s labour force including both sexes in April 2012 was approximately 18.8 million (17.5 million employed and 1.3 million unemployed). Learn more

Profits

A privately owned business (owned by an individual, partners, or shareholders) will try to earn a profit to stay in business. A business will incur costs to produce goods and services and will earn revenues from the sales. If the revenues are greater than the costs, the business makes a profit.A business will need to make a reasonable profit to stay in business or else the owners will seek out some other form of work in order to generate the return on their investments of time and capital that they desire. Learn more

Layoffs/cutbacks/downsizing

When a business is selling less of its products or services, it usually makes less money or loses money. In such times, the business may cut back on how much it produces. This often means fewer workers are required. Some workers may be “laid off” as a result of the “cutbacks” or “downsizing” of the company.The loss of jobs may be temporary or permanent depending on how well the company does thereafter.

Canada’s Unemployment rate

Canada’s unemployment rate represents the percentage of people in the labour force (those 15 years of age and older) who want to work, are looking for work, but cannot find a job. Learn more According to Statistics Canada, in February 2013 there were 8,556,800 men 25 and over in Canada’s labour force, and 7,628,700 women 25 and over, and 2,843,400 youth ages 15 to 24.The unemployment rate for men was 6%, and for women 5.7% and for youth 13.6%.

Starting a business

Anyone who wishes to is free to try to start a business in Canada so long as it fits within the laws and regulations that govern business activity. Starting a business is not easy, but it can be very rewarding. It is important to have experience and to understand what will be involved. A business needs a good business plan and enough money to support it.A business must also provide a product or service that enough people will want to buy so that the business can make a profit. Learn more

Severance versus layoff

When a business experiences a difficult period, it may need fewer workers.At such times, it may lay off workers.This means the workers may come back if or when things improve.The business may also give severance to workers if the job is over permenantly.Visit DayPlanner web site – Link #174 for more information.

For “regulated” occupations, you will need to have your credentials recognized.This can take time. If so, you may need to find a job in a non-regulated profession while you wait.The Canadian Information Centre for International Credentials (CICIC) (www.cicic.ca) and the Foreign Credentials Referral Office (FCRO) both provide information on Canada’s regulated professions. (www.credentials.gc.ca)

Entrepreneurs

An entrepreneur is a person who identifies a product or service that is needed and starts a business to provide that product or service. Successful entrepreneurs are usually those who love what they do, have a strong desire to accomplish personal goals, are good team builders, and are willing to work hard. Entrepreneurs often help to increase and improve jobs, competition, quality, and incomes in their communities. Are you a prospective entrepreneur? See page 234 to learn more about the characteristics of an entrepreneur. Learn more.

Severance pay

Usually when a worker is “fired without cause,” “let go,” “dismissed,” or “laid off” without notice, the worker will receive severance pay of some amount.The amount will usually depend on how long the worker has been employed at the company. The money is given to help the worker through the initial period of unemployment. Notice periods and severance pay are issues that are determined by provincial or territorial labour legislation. In some instances, individuals can appeal severance, either through a labour tribunal or through a challenge in the courts.

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