In New Brunswick, your employer cannot legally force you to sign a Full and Final Release just to receive your minimum statutory notice pay or vacation pay. You only need to sign a release if they are offering you an additional, larger common law severance package, and you always have the right to take the offer home to have a lawyer review it.
Being let go from your job is an overwhelming experience. 🚨 Employers often take advantage of this shock by sliding a large stack of papers across the desk and demanding a signature right then and there. They might say, “If you don’t sign this release by tomorrow, you get nothing.” This high-pressure tactic is designed to panic you into giving up your legal rights.
Whether you work in a corporate environment in Moncton, a call centre in Fredericton, or a retail store in Saint John, you must understand your rights. A Full and Final Release is a legally binding contract that prevents you from ever suing the company. This guide explains exactly what to do when your employer tries to force your hand.
Step-by-Step Process in New Brunswick
You have more power in this situation than you realize. 📋 Do not let an artificial deadline intimidate you into signing away tens of thousands of dollars. Here is how you should handle the termination meeting and the aftermath.
Step 1: Refuse to Sign on the Spot
When handed the release document, politely but firmly refuse to sign it immediately. Simply state, “I need time to review this and seek legal counsel.” Under Canadian common law, an employer must give you a reasonable amount of time (usually at least 3 to 7 days) to have an employment lawyer review the offer. If they try to force you, the contract may be thrown out in court later due to “duress.”
Step 2: Demand Your Minimum Statutory Entitlements
Under the New Brunswick Employment Standards Act, you are legally entitled to your final wages, unused vacation pay, and up to 4 weeks of statutory notice pay (depending on your years of service). 💵 Your employer is required to pay this regardless of whether you sign anything. A release is only required if they are offering you extra money beyond the legal minimum.
Step 3: Have an Employment Lawyer Review the Offer
Take the unsigned release and the termination letter to an employment lawyer. They will calculate your true common law reasonable notice. In many cases, the employer is offering a tiny fraction of what a judge at the Court of King’s Bench would actually award you.
Step 4: Negotiate a Better Severance Package
If the offer is unfair, your lawyer will draft a demand letter to the employer. 💼 You will only agree to sign the Full and Final Release once the employer agrees to pay a proper severance amount that reflects your age, tenure, and the difficulty of finding a new job in New Brunswick.
How Much Does it Cost in New Brunswick?
Getting professional advice before signing away your rights is highly affordable and often results in significantly more money in your pocket. 💰
- Severance Review: Most employment lawyers in New Brunswick charge a flat fee of $300 to $600 CAD to review the release and tell you if the offer is fair.
- Negotiation Fees: If you decide to fight for more money, many lawyers will take the case on contingency. This means they charge no upfront fees and only take a percentage (usually 25% to 33%) of the extra funds they secure for you.
- Employment Standards Branch: If your employer illegally withholds your basic statutory pay because you refused to sign, you can file a complaint with the provincial Employment Standards Branch for $0 CAD.
| Statutory Minimums | Must be paid automatically. | No signature required. |
| Common Law Severance | Subject to negotiation. | Signature required to finalize. |
How Long Does the Process Take?
Your employer is legally obligated to pay your final wages and statutory notice on your next regular payday, or within a few days of your termination, even if you are still negotiating the larger severance package. ⌛
If you refuse to sign the initial lowball offer, the process of having your lawyer negotiate a fair severance package usually takes 4 to 8 weeks. If the employer is completely unreasonable and a lawsuit is filed, court proceedings can take up to a year or more.
Frequently Asked Questions (FAQ)
What happens if the 3-day deadline on the offer expires?
Deadlines on severance offers are usually an artificial pressure tactic. If the deadline passes, your lawyer can simply re-open negotiations. The employer still owes you your legal minimums regardless of any deadline.
Can my employer hold my Record of Employment (ROE) hostage?
Absolutely not. Under federal law, your employer must submit your ROE to Service Canada within 5 calendar days of the end of the pay period, whether you sign a release or not. Withholding an ROE can result in fines from the CRA.
I already signed the release in a panic. Is it too late?
Not necessarily. If you were subjected to extreme pressure, given no time to read it, or if the contract is legally flawed, a judge in New Brunswick can sometimes “set aside” (cancel) the release. You should contact a lawyer immediately.
Does a release mean I cannot report workplace harassment?
Usually, a release stops you from suing the company for money. However, a contract generally cannot stop you from reporting illegal acts, such as sexual harassment or human rights violations, to the proper provincial authorities.
Leave a Reply