Severance Pay | MacLeod Law Firm

Court says $ 2.5M payroll is not limited to Ontario Payroll for Severance Pay Purposes

Doug MacLeod — Tue, 22 Jun 2021 14:37:59 +0000

An employee with 5 years service is entitled to one week severance pay for each year of service to a maximum of 26 weeks severance pay under the Employment Standards Act (ESA) IF the employer’s payroll exceeds $ 2.5M. In 2014, Ontario’s Superior Court of Justice concluded payroll is not limited to Ontario payroll but the Ontario Labour Relations Board has not followed this decision and has…

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Severance Pay Calculation Under Employment Standards Act based on Ontario Payroll says OLRB

Doug MacLeod — Thu, 14 Feb 2019 21:52:23 +0000

Under section 64 of the Employment Standards Act (“ESA”), an employee with five years’ service is entitled to one week severance pay for each year of service (to a maximum of 26 weeks) in addition to notice of termination if “the employer has a payroll of $2.5 million or more.” Decision Counting Non-Ontario Payroll Since a 2014 decision of the Ontario Superior Court, Paquette v. Quadraspec Inc.

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Court of Appeal Gives Clarity to Termination Clauses

Doug MacLeod — Fri, 03 Mar 2017 14:43:26 +0000

As we have written in the past, the enforceability of termination clauses is a hotly contested area of employment law. Employers who draft proper termination clauses in employment contracts can significantly limit their liability when terminating employees. A termination clause that is poorly written will not be enforced by a court. If the clause is not enforceable, then the employee is usually…

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Am I entitled to my bonus at termination?

Nadia Halum — Mon, 05 Dec 2016 20:58:25 +0000

We have previously written about when employees are entitled to receive their bonus at the time of termination. To recap, when an employee is terminated without cause, they are entitled to receive notice or pay in lieu of notice. The award in a wrongful dismissal claim is meant to place the terminated employee in the same financial position they would have been in had such notice been given.

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Can My Employer Terminate My Employment When I am on LTD?

Nadia Halum — Fri, 11 Nov 2016 19:03:07 +0000

We often get calls from disabled employees, typically on LTD, who have been terminated about two years after starting a medical leave. It often means their health benefits, including prescription drugs, have been discontinued. They want to know if this is legal. This blog discusses this particular situation. Why this Situation Arises Typically, LTD policies require the insurer to pay benefits for…

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Is Severance Pay Required by Law?

Nicole Simes — Mon, 04 Apr 2016 14:00:20 +0000

Often when employees talk about severance they mean a severance package. However, severance is a specific legal term only applicable in certain situations. Employee Rights at Termination Almost every employee who is terminated without cause has the right to some notice of termination or pay in lieu of notice. The right to this termination notice or pay comes from the Employment Standards Act…

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The “Bottom Line” of Restructuring

Nicole Simes — Fri, 18 Mar 2016 16:36:23 +0000

In today’s shifting economy, restructuring is common amongst large and small employers. Restructuring may involve shifting employees within a company, but more commonly it also involves the elimination of various sectors of an employer. For an employee, the stress of a restructuring can be lessened by understanding the employer’s obligations. Notice or Pay If an employee is fired as part of a…

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Should you Accept that Severance Package?

Nicole Simes — Fri, 08 Jan 2016 15:00:31 +0000

You were terminated from your job. Your employer offered you a severance package. Is it fair? The answer to this question often turns on whether you previously signed an employment contract. More specifically, did you sign an employment contract that has an enforceable termination clause? Termination Clauses A termination clause is a section of an employment contract that talks about how much…

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Severance Package and Termination Clauses

Nicole Simes — Tue, 14 Apr 2015 14:28:53 +0000

Employees often come to us to review their severance packages. When we review a severance package, one of the questions we ask is whether there is an employment contract with a termination clause. We carefully review the circumstances surrounding the signing of any such contract to determine whether a court will enforce the termination clause. There are several ways to attack a termination clause…

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Severance Pay Versus Termination Pay

Nicole Simes — Mon, 09 Dec 2013 22:15:14 +0000

When an employee is fired without cause, the employer is generally required to give notice or pay the employee in lieu of notice. Most of the time an employee is terminated without notice and given a severance package. Termination pay Employees who are terminated without cause are generally entitled to notice of termination. For information on what constitutes just cause see here.

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