The liabilities of vendor and purchaser for employee entitlements upon termination can become a major issue in negotiating the sale of a business. Section 64 governs statutory severance pay, which is payable only to an employee severed without cause, as defined, who has five or more years'
The vast majority of terminations are on a without cause basis, in some circumstances employers are permitted to terminated employees for just cause without the requirement to provide advanced notice of termination or payment in lieu thereof. The burden of proof rests with the employer to
Age and tenure of services are typically positively correlated, and they are two of the key factors considered by a Court in determining a terminated employee's reasonable notice entitlement. It has been recognized in case law that the availability of similar employment opportunities diminishes as
Under the Employment Standards Act ("ESA") in Ontario, terminated employees are entitled to both Termination Pay (s.57) and Severance Pay (s.65) under certain circumstances. While severance pay has a different meaning under the common law, and all employees are entitled to reasonable notice of
In order to terminate an employee for cause, an employer must demonstrate that the employee engaged in serious misconduct (i.e., theft, physical harassment or sexual harassment) or that the company placed the employee on a progressive disciplinary plan that sets various performance targets that were
Severance pay obligations to employees can be a substantial yet often overlooked obligation in the context of a purchase and sale of a business. Whether an asset sale or share sale, the vendor and purchaser must address severance pay issues before consummating a transaction. In this post, we will
As we have commented on various posts, employees that are terminated without cause from their employment are entitled to a severance package in accordance with the Employment Standards Act (ESA) in Ontario and the common law. Those employees that are terminated for cause from their employment may
When an employer wishes to break an employment contract without cause (i.e., for instance, to restructure its business), the company must provide the terminated employee with advanced notice of termination or payment in lieu of notice of termination. As many callers to our law firm are surprised