Court rules low severance payment for town worker ‘completely unacceptable’

|Canadian Employment Law Today

Peters v. Kelvington (Town), 2004 Carswell Sask 62 (Sask. Q.B.)

Yvonne Peters worked for five-and-a-half years as the economic development officer for the town of Kelvington, Sask. She was described as a “splendid employee” who often went beyond the call of duty. At the time of her termination she earned about $2,720 per month.

Throughout 2002 the town was facing severe budgetary pressures and on Sept. 11 the mayor and a town councillor met with Peters to tell her she was being terminated. This was unanimously approved at the next meeting of the town council as part of a motion that included a reference that she was to “receive payment in lieu in accordance with the