Don’t forget the comforts of home – information for associate lawyers considering a move

July 19, 2021

As pandemic-related restrictions gradually start to ease, people are becoming more eager to go out, travel, and generally move around. Employees are no exception – recent polls have indicated that millions of workers across North America are planning on leaving their current jobs once the threat of the pandemic is over. Anecdotally, we are hearing about a lot of lawyers in Toronto, particularly junior and mid-level associates, considering opportunities beyond the local market. US firms in particular are looking for talent, and there are certainly advantages to signing up. Whether it’s a desire for a change of scenery or a compensation bump, a lot of associate lawyers are choosing to head south of the border to continue their legal careers.

However, as with any Ontarian who chooses to relocate for work, lawyers need to consider the laws that will apply to their employment relationship, whether it is remote or in-person. New York and California, two popular destinations for departing lawyers, are generally “at-will employment” states, meaning an employer is permitted to dismiss an employee without having to provide any advance notice whatsoever, even if the employee is dismissed without cause (with some exceptions). This is drastically different than Ontario’s employment laws which guarantee minimum notice periods (during which the employee’s pay and other benefits are continued) and other minimum entitlements to those who work in Ontario who have been terminated without cause.[1]

We generally don’t think about getting fired when we start a new and exciting job. However, notice periods can be a crucial safety net in the event an employee is blindsided by a termination. In the best cases, notice periods give people time to make a plan and secure a new job without suffering an interruption in pay, which may be especially difficult in a new city where one may not have as many connections as back home.

For my peers and colleagues who are making the move to or working in places that do not guarantee minimum notice entitlements, I encourage you to carefully review your new employment and ancillary contracts. You should turn your mind to not only notice periods on termination, but also choice of law and choice of forum clauses, possible tax implications of being paid in foreign currency or by a U.S. entity, and relocation issues related not only to the move to the new job, but a move home if it doesn’t work out long term.

Getting advice from a lawyer who is specialized in employment and understands cross-border moves can help you better understand the costs and benefits of moving to another jurisdiction; they may even help you negotiate a notice clause that will provide you with the comforts of home. If you have questions or would like guidance when considering a move, please contact any of the lawyers at our firm.

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[1] In the absence of a clear and enforceable contract limiting one’s rights to the statutory minimums, entitlement is actually far greater.