The three most viewed articles on HRinfodesk this week deal with differential treatment in the workplace, how an employee’s dishonesty and breach of confidentiality during a workplace investigation led to termination for cause and how a settlement was easily characterized as a retiring allowance.
Employment lawyers are generally quite adept at negotiating and resolving disputes arising out of the termination of an individual’s employment. We have all seen the statistics that only a miniscule number of dismissals result in a full trial and we know that in almost every case, it is better for the parties to reach a resolution than to proceed with litigation. That said, many traps exist in the settlement of a wrongful dismissal claim.
When I speak at conferences, I am often asked the following question: “Is severance pay required when an employee is terminated?”
Before this question can be answered, we have to first confront the difficulty that some payroll terms traditionally used to describe both termination, as well as any payments resulting from this event, haven’t always been defined with the greatest of clarity. My preference has always been for those terms that convey the clearest meaning of the related employment standards and source deduction requirements.