Also, the decision was released in French, and an English translation was not widely published. The Plaintiff argued that the termination clause in his employment agreement was invalid, and the Defendant disagreed.
The number is further explained in the ESA in terms of how payroll is calculated, but the ESA does not specify what geographic area this payroll covers.
The use of this blog and this post does not create a lawyer-client relationship. At the moment, the Paquette decision has not yet been followed by any subsequent cases in qualifying severance pay entitlements.
Accordingly, the Court awarded the employee 26 months of salary less the gratuitous eight-week payment. The Act is worded clearly.
In his ruling, the Honourable Mr. The decision presents challenges to employment lawyers in Ontario, and may present even greater challenges to employers depending if and how it is followed in the future.
The measure relates to wages paid by the employer in and outside of Ontario. As the ESA is legislation from Ontario, it was usually understood by lawyers and judges alike that the payroll statistics meant only payroll within Ontario, and this has been upheld by previous Ontario Superior Court decisions [ 2 ].
Please note that this blog and its posts are intended for educational uses only. Colloquially, it often refers to a severance package that employers offer terminated employees, which can include statutory termination pay in lieu of reasonable notice, statutory severance pay, any bonuses owed or vacation pay owed, any extra pay in lieu of notice potentially available under the common law, or any combination thereof.
However, if future cases do follow suit, the decision could create a monumental shift in the number of employees eligible for severance pay upon termination. The decision was not appealed. Severance Pay is an entitlement under the law, and it cannot be set off against statutory termination pay, or a greater offer from the employer of pay in lieu of notice.
In Paquette c Quadraspec Inc. There is no legal justification or authority to interpret these sections so as to insert restrictions that are not to be found in the Act.
They are not intended as, nor should they be construed by the user as legal advice. For assistance in how to best structure your employee termination packages, or if you are an employee looking to review your termination package, contact us today to set up a consultation with our employment law experts.
If an Ontario employer had small operations within the province but a much larger volume business in other locations, they may not have met the requirements for paying severance pay to terminated employees.real estates mc immobilier le plan de la tour Professionals MC REAL ESTATE AGENCY located in Plan de La Tour in the Var advise you to buy or sell your property for your confidence.
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The Legal Definition The legal definition of ‘severance pay’ in Ontario is much narrower. Severance pay is owed to provincially-regulated terminated employees under the Employment Standards Act, (“ESA”) in a very specific set of circumstances.
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