An employee who is terminated without cause is entitled to notice (that is, to be informed his/her job is ending) OR pay in lieu of being notified.
Many employees who are terminated without cause figure the employer has to shell out because laying off a worker is a bad thing.
But that’s not the way the law looks at it. No worker has a right to their job, and anyone can be laid off, even if he/she has worked for an employer for a long period of time.
The employer has to advise the employee that his/her job will end as of a set date, and generally the rule of thumb used to calculate the appropriate notice period is one month per year of service.
That means that an employee who has been at a workplace for 10 years is entitled to be told today that the job will end 10 months from now. That’s it. The employee does not have to provide any financial settlement at all.
The law regards notice as that period of time employee needs to find not a job. Of course, it’s hard to look for a new job when you’re still doing your old job. On the other hand, it can be sometimes easier to get a job if you’re already employeed, some say.
Employers more often prefer to get the employee out the door right away and pay out money rather than keep the doomed employee around for weeks or months. It’s hard to an employee to put their heart into the job when he/she knows their days are numbered.
Sometimes the employer will provide a combination of actual notice and payment in lieu of notice.
The important thing for employees is to know what you deserve and what you’re getting, either in actual notice or payment in lieu of notice.