Tag archives: payroll

Ontario Divisional Court expands statutory severance pay threshold

In Hawkes v. Max Aicher (North America) Limited, the Ontario Divisional Court held that the calculation of an employer’s payroll for the purposes of determining its severance pay obligations under the Ontario  Employment Standards Act, 2000 (ESA) must include its payroll outside of Ontario and Canada.

Background

The employee was employed by Max Aicher (North America) Limited (Aicher), a wholly owned subsidiary of Max Aicher GmbH & Co KG (MAG), which was headquartered in Germany. Following the termination of his employment, the employee filed a complaint with the Ministry of Labour alleging that … Continue Reading

Judgment on the qualification of a “payroll company” and a “temporary agency contract”

On 4 November 2016, the Supreme Court in the Netherlands issued an important judgment  that will impact on the use of payroll companies. In this judgment, the Supreme Court held that no “allocation function” is needed to qualify as a temporary employment agency contract (uitzendovereenkomst). This e-Alert provides a summary of the judgment and further background on its impact and scope.

Court case C4C vs StiPP

In this case, the main legal issue was the interpretation and scope of a temporary agency contract. StiPP operates an industry wide pension fund that is mandatory for temporary agency workers. StiPP … Continue Reading

Court Counts Payroll Outside of Ontario to Award Statutory Severance

The recent decision of Justice Kane in Paquette v. Quadraspec Inc., 2014 ONCS 2431 (“Paquette”) has arguably changed employees’ entitlement to severance pay on the termination of employment.
Severance pay is distinct from termination pay and is meant to award long-term employees for their service and to compensate them for their loss of seniority and the value of their employer-specific skills. An employee entitled to severance pay will receive one weeks’ wages per year of service, prorated for partial years of service, and capped to a maximum of 26 weeks.

Pursuant to the Ontario Employment Standards Act, Continue Reading

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