The dismissed employee, when being laid off, should consider the following terms and conditions stated in the letter of termination before signing a Full and Final Release:
Statutory Termination Pay
- The dismissed employee should receive a lump-sum minimum statutory entitlement, less applicable statutory deduction, under the Employment Standards Act, 2000, which depends on the number of years for services rendered in the company. Details can make reference to our last week's article published on January 17, 2015.
- In addition to the minimum statutory pay outlined above, the company may also provide the dismissed employee with an additional payment, which may reflect common-law requirement in a separation package.
- The company is obliged to pay, including but not limited to life, accidental death and dismemberment, disability or medical, drug and dental during the statutory termination pay period to which the dismissed employee is entitled.
- The dismissed employee will be paid any outstanding vacation pay during the statutory termination pay period, less applicable statutory deductions.
- The company must compensate the dismissed employee for any loss of pension entitlement during the statutory termination pay period.
- The company may also pay the dismissed employee severance pay in the amount of one week's pay for each year's service, to a maximum of 26 weeks. Qualifying conditions to severance pay can be referred to our last week's article published on January 17, 2015.
Letter of Reference
- The company will prepare to provide the dismissed employee with a letter confirming his/her employment.
Record of Employment (ROE)
- The dismissed employee will be given ROE within 5 days of his/her termination or end of his/her notice period for employment insurance purpose. A T4 slip will also be required to send to the dismissed employee.
The terms and conditions in the letter of termination will not be limited to the above. Please be aware that the signing of a release is not a condition of receiving your minimum statutory termination pay or/and severance pay under ESA. The company may only withhold payments related to common-law requirement, until a Full and Final Release has been signed. The signed release may not be valid, unless the dismissed employee is advised for independent legal advice by the employer. Lastly, Termination pay or/and Severance pay must be paid to the dismissed employee either within 7 days of the termination of employment or on the employee's next payday, whichever is later.
Further information can be referred to http://www.labour.gov.on.
Disclaimer: This information is not intended to be construed as a legal advice, but strictly for information only in this entire website. Please contact Trustworthy Legal Service for your independent legal advice in your particular situation. The first consultation is also required prior to my retainer of your case.
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