HOW TO CALCULATE SEVERANCE PAY
When you are fired, it doesn’t only impact you financially but also adds to the stress. If you have been offered a Notice and Severance, then you must look at the minutest of details. These payments will help you till you find another job. Many factors come into play when severance pay is being calculated. If you have been offered Notice and Severance, then get in touch with Employment Lawyer Toronto who will look at the notice that you’ve been offered and help you to get what you rightly deserve. Following is all that you need to know regarding Severance Pay.
For- Cause and Not-for-cause Terminations:
Several documents have to be prepared if you are being let go and one of them is a written notice of termination which would state whether you’ve been let go “for-cause” or “not-for-Cause”. Misconduct, theft, insubordination, intoxication at work and performance issues are some of the reason why you could be let go for cause. The employer can also terminate your position on the spot. In this case, they would owe you severance pay unless they can prove willful misconduct.
In the case of not-for-cause termination, the employer doesn’t need to give you a reason. They are only required to give you reasonable notice, without alleging that you are at fault. This puts you in a good position as a litigant. If you haven’t received any written document, then the analysis shifts to how much they owe you.
Minimum Notice and Severance Pay:
When you’ve been given a not-for-cause termination then a sufficient notice needs to be provided to you and during this period you will receive Notice Pay which is a continuation of the salary for a particular period. You are guaranteed to receive a week of notice pay for each year of employment, with a maximum of up to 8 weeks.
According to the courts, the time take to find a similar alternative employment in the industry at the same salary and position is considered as a reasonable notice.
What are your benefits?
Our employment lawyers also look at commission bonuses as well as dental, medical and disability benefits when calculating your severance pay. When you have been terminated not for cause, your salary and perks must continue through the notice period. At times to become re-employed, you might need to reposition your skills into a new industry or maybe transition to self-employment, then an outplacement service and personalized career coaching can be negotiated which will help you to move forward. If you were bullied or harassed before termination or let go because of pregnancy or returning from disability leave, then you should bat for extra damages for mental injury.
Employment Insurance and Severance Pay:
Notice and severance payments affect your employment insurance benefits. The termination payment ties you when you are in between jobs and employment insurance benefit also does the same. The Employment Insurance Act doesn’t let you double dip.