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Posts Tagged ‘severance’

Unexpected risks of stock option plans

Thursday, October 27th, 2011

Stock options and stock grants have become normal and expected elements of executive compensation in Canada. Stock options are generally granted to executive employees as a means of creating a common purpose or goal between senior employees and the company. The valuation of these options, and the employee’s entitlement to exercise them, has been an issue in many wrongful dismissal actions.

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Tags: Corporations Act, employee shareholder, executive compensation, financial information, lawful termination, lump sum severance, oppression action, period of notice, securities act, severance, stock grants, stock option plan, stock options, termination, termination notice, vesting of stock options
Posted in Benefits, Finance and Accounting, Internal Controls, Payroll | Make a Comment »

Practical advice regarding dismissed employees and mitigation

Wednesday, October 19th, 2011

Most employers are aware that any dismissed employee has a duty to mitigate. Usually, this duty arises in the determination of an appropriate severance payment to an employee. Where an employee contests the severance, the duty to mitigate will undoubtedly apply as part of the matrix of calculations to be determined.

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Tags: duty to mitigate, employment contract, employment law, lump sum severance, ontario, predetermined severance, salary continuance, severance, severance period, termination
Posted in Compensation, Employment Standards, Human Resources, Payroll | Make a Comment »

Widespread confusion on how courts determine the amount of notice of dismissal

Thursday, October 6th, 2011

As I and others have frequently commented, there is widespread confusion and misunderstanding regarding how our courts determine the amount of notice of dismissal (sometimes referred to as “severance”) an employee is entitled to. The recent decision of the Saskatchewan Court of Queen’s Bench in Coppola v. Capital Pontiac Buick Cadillac GMC Ltd. provides a fairly thorough analysis.

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Tags: amount of notice of dismissal, Bardal v. The Globe & Mail Ltd., Coppola v. Capital Pontiac Buick Cadillac GMC Ltd., Dismissal, employment law, Hall v. Canadian Corporate Management Co., Honda Canada Inc. v Keays, Issacs v. MHG International Ltd., length of notice period, length of notice requirements, length of service, lengthier notice periods, McNevan v. AmeriCredit Corp, notice of dismissal, period of reasonable notice, reasonable notice, reasonable notice of termination, severance, termination
Posted in Compensation, Employment Standards, Human Resources, Payroll | Make a Comment »

Employer was permitted to contract out of human rights obligations

Wednesday, July 6th, 2011

I read an interesting case recently that could be considered controversial: an employer was permitted to contract out of its human rights obligations with some vulnerable employees who were at an economic disadvantage and who experienced significant language barriers. How did the employer accomplish this? The employer added a provision in its termination letter that offered the employees consideration in exchange for signing releases preventing them from launching a human rights complaint.

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Tags: accepting the additional payment in exchange for the release, canadian employment law, consideration, contract out of human rights obligations, economic disadvantage, employment contract, employment law, ethnic origin, human rights claim, human rights complaints, human rights tribunal, independent legal advice, language barriers, release, reorganization, severance, termination, termination notice, vulnerable employees
Posted in Employment Standards, Human Resources, Human Rights | 6 Comments »

LTD claims by dismissed employees

Thursday, April 7th, 2011

Employers that dismiss employees without cause, and without ensuring that they take steps to preclude all potential claims, can face significant liability beyond the “typical” wrongful dismissal damages. The recent decision of Mr. Justice Echlin of the Ontario Superior Court of Justice in Brito v. Canac Kitchens is an example of the type of situation employer’s dread. In that case…

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Tags: common law notice, contractual agreement, damages for lost disability benefits, Disability benefits, employment contract, employment law, lengthy notice period, liability, Long-term disability, LTD, minimum notice, moral damages, notice of dismissal, post employment benefits, punitive damages, salary and benefit continuance, severance, termination, termination without cause, wrongful dismissal
Posted in Benefits, Employment Standards, Human Resources, Payroll | Make a Comment »

Ontario Ministry of Labour online severance tool

Thursday, May 6th, 2010

The Ontario Ministry of Labour has a new online Severance Entitlement Tool to help employers and HR professionals determine when a terminated employee is entitled to statutory severance pay.

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Tags: employment law, employment standards act, ontario, Ontario Ministry of Labour, Payroll, severance, Severance entitlement tool, Severance pay, Statutory severance, termination
Posted in Employment Standards, Human Resources | Make a Comment »

The importance of notice and manner of dismissal

Friday, January 22nd, 2010

I recently read an Alberta case where a financial consultant, a top performer, was terminated without notice. The court found he was wrongfully dismissed and terminated in an insensitive manner; this error in judgment cost the employer $2.2 million in damages.

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Tags: Alberta, Alberta employment standards act, canadian employment law, common law notice, employment standards act, manner of dismissal, reasonable notice, respectful termination, sensitive termination, severance, statutory notice, termination notice, termination without cause, wrongful dismissal
Posted in Employment Standards, Human Resources | Make a Comment »

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      Thanks Chris. I would suggest that the confusion arises from the way damages were...

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      Suzanne, another timely post on this standard. My question is, there are...



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