26 weeks' severance added to 54 weeks' working notice

Severance is separate compensation, regardless of whether notice is working or paid out: Court

The Ontario Small Claims Court has reinforced the importance of providing statutory severance in strict accordance with the terms of the province’s Employment Standards Act, 2000. The decision provides that since the legislation indicates that severance must be provided in a lump sum — unless the employee agrees to receive the payment in installments — statutory severance must be paid in addition to any working notice provided to the employee. As a result, the employee in this case, who received 54 weeks of working notice — well in excess of all statutory payments owed — was awarded an additional lump sum payment of 26 weeks for severance.

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