pay in lieu of notice
Most people assume that they know what a probationary period is and how it works in Canada. Unfortunately, however, there are many misconceptions with respect to the law in this regard, and many employers unknowingly expose themselves to significant liability when they hire new employees.
Even in the absence of a release, employee who accepted a termination package not entitled to additional damages
If an employee negotiates a termination package with an employer but does not sign a release, can they successfully claim additional pay in lieu of notice in a court action? Interestingly, the Ontario Superior Court recently held that the answer for one employee in these circumstances was “no”.
The three most viewed articles on HRinfodesk this week deal with extended health care plan payments, the review of existing employment contracts and the possible taxable benefit of employer-provided cars.
There is an implied term of the employment contract that when an employee is terminated without cause, they will be provided reasonable notice of termination. (Of course, an employer can avoid the reasonable notice requirement by including an express provision regarding termination in the employment contract.)
Our federal government’s recent introduction of proposed reforms to the employment insurance system has prompted the expected furor from both sides of the debate…
I always advise clients to consider their options when they must dismiss an individual (assuming it is without cause). Rather than automatically offering a package, and paying the employee not to work, I encourage our clients to consider whether a period of working notice could be viable. By doing so, at least they would get some value for their money. However, I often think back to a comment made by Mr. Justice Donnelly of the Ontario Superior Court of Justice, who, in the course of considering a wrongful dismissal claim, opined that “[w]orking notice is an institution almost invariably predestined to fail.”