severance

Subscribe to severance
severance and employer payroll threshold
Photo by John McArthur on Unsplash

A new ruling from Ontario’s Divisional Court has changed which employees will be entitled to severance pay. While the law has been mixed, it was generally the case that the $2.5 million payroll threshold for the purposes of calculating severance pay applied to Ontario payroll only. The Divisional Court has now ruled that global payroll should be considered. 

What’s Severance Pay?

In Ontario, employers with a payroll of more than $2.5 million must, upon termination or severance of employment, pay severance pay to employees with five or more years of service. This aspect of the Ontario Employment Standards Act, 2000 (ESA) increases the legal minimums employers are required to pay to long service employees significantly. Under the ESA, notice of termination caps out at 8 weeks, whereas severance pay can be up to 26 weeks. …
Continue Reading Heads up Multinational Employers! A Change to the $2.5 Million Payroll Threshold Calculation.

Leave to Appeal Waksdale Decision
Image by Edar from Pixabay

The highest Canadian court has just confirmed that an invalid “just cause” termination section in an employment contract will also knock out the entire termination section, including the “without cause” section. 

In our earlier blog discussing employment termination packages –Termination Entitlements: Benefits, Bonuses, and Commissions – we promised to keep you updated on 2020’s employment law decision of the year, Waksdale v. Swegon North America Inc. So here we go. 

Leave to Appeal Denied

To recap, Waksdale was a decision from the Ontario Court of Appeal that immediately put termination provisions in jeopardy. In the case, the Court of Appeal found that the employer, Swegon North America, could not rely on their properly drafted “without cause” termination provision, in a without cause termination of their employee, Benjamin Waksdale. The reason is that the  “with cause” provision in the same termination section of his contract was missing certain criteria and did not comply with Ontario’s Employment Standards Act, 2000. We wrote about the decision last summer here. …
Continue Reading Waksdale: Now the Final Word on Termination Provisions – Leave to Appeal Waksdale Decision to the Supreme Court of Canada is Denied

executive termination package entitlements
Photo by Bernard Hermant on Unsplash

Unfortunately, lots of terminations are coming across our desks these days. While most employers understand that they need to provide notice of termination, many employees have a variety of different types of compensation which may or may not continue during the notice period. As with many things in law, it depends! 

Let’s go over some of the common aspects of executive termination packages.

A Primer on Notice

It all starts with notice! Unless an employee is being terminated for cause, they are entitled to notice of termination. “For cause” or “with cause” terminations are rare, so in most cases and absent egregious employee behaviour, employers will owe employees notice.
…
Continue Reading Termination Entitlements: Benefits, Bonuses and Commissions

enforceability of specific termination provisions
Image by Edar from Pixabay

This Ontario Court of Appeal decision has been the talk of the town on all the Ontario employment law blogs and while we don’t like to be followers, we also wanted to make sure our readers did not miss this important decision. In Waksdale v. Swegon North America Inc. the Ontario Court of Appeal ruled on the enforceability of specific termination provisions in an employment contract, finding the “without cause” termination provision enforceable because of a flaw in the “with cause” provision. 

Courts frequently come up with new ways of invalidating employer drafted termination provisions that would restrict an employee’s entitlement to notice. The enforceability of termination provisions is what lots of employment cases are about. A properly drafted termination provision in an employment contract can significantly limit an employee’s entitlement to notice of termination. For example, a long service employee terminated “without cause” could be entitled to as little as 8 weeks or as much as 2 years of notice depending on the contract. …
Continue Reading Employers Get Out Your Contracts: An Important Ruling on Termination Provisions

Can I Afford Legal AdviceHow Can I Afford Legal Advice?

Many employers are facing rock hard choices right now: layoff on shaky legal ground or go bankrupt? Let some employees go, but how to afford termination pay? Offer more than ESA minimums to get a release or risk a claim down the road?

Since early March 2020, we’ve found …

In the wake of Target closing its Canadian doors this month, we have had some of our employer clients asking about the pros and cons of working notice.  The 17,600 employees of Target have received at least 16 weeks of notice each, but many will be expected to work all or part of those 16 weeks rather than receive a lump-sum payment.  As reported in the news, many think they are not getting any “severance” at all. 

To help clear up some of the misperceptions around working notice, here are three key points to consider:…

Continue Reading When Can an Employer Give Working Notice?

Terminating an employee’s employment without cause in Canada comes at a price. The various employment acts and codes set out the requirements for termination notice or pay in lieu of notice (and in Ontario and federal workplaces, severance pay in addition to termination pay). The required termination period will range from 1 to 8 weeks…