severance pay

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If you’re reviewing a termination package that includes a ‘retiring allowance,’ it might sound like a perk tied to retirement. That makes sense, right? Not really.

Despite the name, a retirement allowance in Canada has nothing to do with retirement. In most employment law cases, it simply means money paid to an employee upon or after termination of employment in recognition of long service. It’s a tax term, not a legal entitlement, and it often leads to confusion when planning severance packages or reporting to the CRA. Let’s break down what it is – and what it isn’t.Continue Reading Retiring Allowances – Don’t Be Fooled by the Name

Navigating Terminations and Severance Pay in Ontario’s Farming Sector

The farming sector in Ontario is unique in many ways, and employment laws reflect that. One area of concern for both farm owners and workers is how terminations and severance pay are handled under the Employment Standards Act, 2000 (“ESA”).

What Does the Farming Exemption Cover?

The farming exemption, as outlined in Ontario Regulation 285/01 under section 2(2), excludes farm workers from certain ESA provisions such as hours of work and overtime pay. These exemptions are designed to reflect the unique demands of agricultural work, which can be highly seasonal and subject to the unpredictability of weather and harvest cycles. However, these exemptions have their limits. Continue Reading Thinning the Herd: Terminations and Severance for Ontario Farms