Double dipping: Can employees get severance plus pension or disability benefits upon termination?

September 11, 2017 0 COMMENTS

by Julie Robinson

Employees in Canada are usually entitled to receive reasonable notice of termination or pay in lieu of notice unless fired for cause. But if the employees receive pension or sick leave payments during the notice period, are they entitled to both their regular salary in lieu of notice and such pension or sick leave payments? Should the latter amounts be deducted from the salary otherwise owed by the employer in respect of the notice period?

Double recovery?

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Probationary clauses: Devil is in the details

May 01, 2017 0 COMMENTS

by J. Alexandra MacCarthy

In Canada, the legal effect of a probationary clause in an employment contract can be unclear depending upon the facts of the particular case. The Supreme Court of British Columbia recently addressed probationary clauses in employment contracts in Ly v. British Columbia (Interior Health Authority), 2017 BCSC 42.

The plaintiff (PY) was hired by the Interior Health Authority (IHA) as the manager of quality and patient safety and client experience and moved from Vancouver to Kamloops for the position. The offer of employment contained the following clause: read more…

No mention of severance pay or benefit continuation … No worries! Termination provision enforceable nonetheless!

November 20, 2016 0 COMMENTS

by Rachel Younan

Recent case law has overwhelmingly rejected termination clauses that purport to limit an employee’s entitlements upon termination to the minimum notice required by applicable employment standards legislation. In Ontario, provisions that have failed to reference severance pay and/or benefit continuation have been found to be invalid, resulting in common law notice that far exceeds the intended contractual entitlement. The 2015 Ontario Superior Court of Justice decision in Oudin v. Le Centre Francophone de Toronto, 2015 ONSC 6494, diverged from that case law and, this summer, was upheld by the Ontario Court of Appeal, 2016 ONCA 514.

Facts

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‘You must be actively employed to receive bonus’—or not, says Ontario court

October 02, 2016 0 COMMENTS

by Shane Todd

In an attempt to their limit severance exposure, employers often require that an employee be “actively employed” on the bonus payment date in order to be eligible to earn a bonus. The idea being that the severance payable to a dismissed employee would not have to take into account an employee’s bonus earnings as the employee would not be able to satisfy the “active employment” requirement contained in the applicable bonus plan. However, as the Court of Appeal for Ontario recently confirmed in Paquette v. TeraGo Networks Inc., 2016 ONCA 618, “active employment” requirements are insufficient to remove or limit a dismissed employee’s rights.

What happened

Trevor Paquette was employed by TeraGo Networks for 14 years. He earned a base salary and was eligible for an annual bonus. The bonus plan required Paquette to be “actively employed” at the time the bonus was paid in order to receive it. In November 2014, Paquette was terminated without cause. The parties could not agree on a severance package and so Paquette sued TeraGo for wrongful dismissal. read more…