Customize Severance Pay Ontario Packages?

The loss of a job can be devastating, especially for a long-term employee. A severance pay package can help cushion the blow of unemployment. But determining how much an employee is entitled to is complex. It depends on various laws and factors, including an employer’s rights and responsibilities under the Employment Standards Act (ESA) and common law.

An employment lawyer can provide advice on an employee’s entitlements and best practices to ensure that employees receive the compensation they deserve when they are dismissed from a company. An employment lawyer can also review severance packages to ensure that they comply with the ESA and other legislation.

When an employer decides to terminate an employee, they are required to give the employee their statutory termination entitlements. This includes one week of severance pay Ontario for every year of employment up to a maximum of eight weeks. Non-unionized employees are entitled to this regardless of their reasons for being dismissed. However, there are certain exceptions to this, such as federal government employees, individuals employed through college work programs, and those who hold political, judicial or religious positions.

Can Employers Customize Severance Pay Ontario Packages?

In some cases, the severance package may include more than the minimum ESA entitlements. This is because many employers are required to provide a financial safety net for their former employees until they find new jobs. However, an employer can offer less than what is owed to an employee if they have a good reason for the dismissal. Unless the employer can demonstrate that the employee’s misconduct is serious enough to justify firing them without cause, they are required to give the employee working notice or pay the equivalent of the wages they would have earned in the final two weeks of their employment.

Most non-unionized workers are entitled to reasonable notice in addition to their ESA entitlements. This is based on a number of factors, including the employee’s years of service, their position and age at the time of termination. Generally, older workers and those with more years of service are entitled to longer periods of notice than younger employees.

An employee’s severance package may also include additional amounts for their unused vacation and sick days. This is because these entitlements are governed by the Vacancy and Vacation Leave Regulations of the Employment Standards Act (ESA). An employee’s severance package will also typically include a bonus or other monetary payment for their performance.

An employee can challenge their severance package if they feel that it is unfair. However, the process is complicated and requires an experienced employment lawyer. The severance pay ontario law firm of Samfiru Tumarkin LLP can assess an employee’s case and determine the best course of action to take in order to obtain justice. Contact us to learn more about our services. We serve clients in Toronto and the surrounding areas of Ontario.