Tag archives: severance

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.


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

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

Negotiating a severance payment: a lawyer’s paradise

An employer may be bound to an offer of financial compensation made to an employee in the negotiation of a severance payment, even though no agreement is reached with the employee. That is the outcome of a recent manifestly unreasonable dismissal procedure at the court of appeal in The Hague.

In the underlying case the employer had displayed a willingness to offer financial compensation, by offering a severance payment based on the provisions of a social plan. Three offers were made over a period of seven months. The employee refused each offer. Since no agreement was reached, the employer applied … Continue Reading

Australia: Employees’ rights on redundancy

Rights of employees upon redundancy of their position and in the case of any resulting termination of the employee’s employment will depend upon whether the employee falls into the Federal employment and industrial relations jurisdiction (National System Employees) or under the jurisdiction of the State in which the employee works.

National System Employees

National System Employees are employees covered by the Fair Work Act 2009 (Cth) (Act). The Act covers all Commonwealth public sector employees and private sector employees in all states (except in Western Australia, where the private sector coverage of the Act is limited to those … Continue Reading

Employees’ rights on redundancy in Venezuela

Employees’ rights on redundancy in Venezuela

The general rule under the Venezuelan Labor Law is that, no worker can be dismissed without just cause unless she/he is offered an indemnity for dismissal equal to the amount of her/his seniority benefit and she/he accepts it – Job Stability -. However, since 2002, workers are protected with a Special Bar against Dismissal (inamovilidad) which has been extended every year up to December 31, 2014 by Presidential Decree. As long as the Special Bar against Dismissal is in force, employers cannot freely dismiss workers without just cause and previously obtaining authorization … Continue Reading