The word ‘severance pay’ is always thrown around quite loosely to outline money and other advantages, an employee should get upon early termination of their employment. Although, severance pay mentions to a specific kind of payment to which only some employees have the right to deal with.
In the occasion that an employee is terminated without any reason, he or she is always authorized to sensible notice or termination pay instead. Termination pay is based on the length of an employee’s service and its permitted minimums are outlined in the Employment Standards Act (ESA).
On the other hand, severance pay relates to extra pay and advantages meant to pay back long-serving employees for intangible dropping like seniority if they are dismissed. But to know about severance package in more detail, better to get assistance from Toronto’s top rated employment lawyer.
Who is authorized to Severance Pay?
Not all employees have the right to severance pay upon dismissal. To qualify for severance pay, you should have been with your boss for 5 or more years. In addition to that, your employer should have a payroll above 2.5 million dollars or have terminated the occupation of 50 or more workers within 6 months because of the permanent shutting down of all or part of their business.
How is Severance Pay Calculated?
The severance amount equals to one week’s pay for every year of your employment with the terminating employer to the highest of 26 weeks. For instance, if you get 1000 dollars in one week and were dismissed after 7 years and 6 months of employment, you would have the right of 7500 dollars severance pay (1000$ * 7.5 years = 7500$).
When do you Get Severance Pay?
The severance amount should be paid within 7 days of the termination of your employment or on the next regular payday. It is commonly given in lump sum but can be paid in installments if you are giving written permission from the Ministry of Labor. If you don’t know much about this pay, hire Toronto’s top rated employment lawyer to know the exact process.
Why take Advice from a Lawyer?
Unluckily for employees, there is a great chance that the severance amount you are provided with will be less than your legal entitlements. Your authority to the reasonable notice will many times entitle you to longer notice than which the ESA offers. Get legal suggestion from Toronto’s top rated employment lawyer before accepting a severance package as you may be authorized to more than what being provided.
In occasions that your severance pay falls short of your entitlements, the employment lawyers in Mississauga can assist you to start an action for wrongful termination. Most cases will come up with a voluntary agreement with your boss. However, if an agreement cannot be reached, then the judge will decide your notice period. It is always good to review your severance pay from Toronto’s top rated employment lawyer to stay away from loss and receive the settlement which you deserve.