Court takes payroll of company, agents into consideration in determining severance eligibility

In Ontario an employer with a payroll of at least $2.5 million must give severance to an employee who has worked for the company for at least five years and has been terminated
|Canadian Employment Law Today

Adamson v. Murray Axmith & Associates Ltd., 2005 CarswellOnt 1611 (Ont. S.C.J.)

The Ontario Superior Court of Justice has ruled that the salaries of a Toronto-based company, and all its Ontario agents, should be added up in determining the severance eligibility of an ex-employee.

Barry Adamson joined Murray Axmith & Associates Ltd. in 1980 and later became the president of the company. In March 2000 his employment was terminated and he filed an action seeking $65,000 in severance pay.