Severance Pay Ontario
Severance Pay Ontario
No matter which country you live in these days employers are looking in to ways to cut their staff. Even those employees who have worked for the company since they left school, may still be finished. By rights, they should be entitled to an advanced notice. It is hard to know what to pay your staff, as they may have been a great asset to your company, but payments have to bide by the laws of the country.
In certain areas of Ontario, Canada, employers have to give their employees a reasonable notice time as well as the right amount of severance pay. The amount they are paid in Ontario is based on if they have been with the employer for five years or more and has a salary of $2.5 million. Therefore, the severance pay Ontario allowed is one week of pay for every week they have worked, as well as their notice.
An employer should be clear on the notice and pay they give their employees. There have been a few instances that have gone to court; the employee has decided to sue for termination pay. Calculate and be clear on the amount of weeks’ severance pay Ontario that is owed before paying to the staff member.
If you are taken to court by your staff, they will take in to consideration many factors. The most important point is finding another job, after you have been given your severance pay. The higher paid and position you had in your last employment will determine how much pay you should be given. Most likely, you should be given a reasonable sum, because it will take longer to get a new job, with the same status.
If you are an older employee, say past your 50s, a judge will take this in to consideration. At one time age did not matter when it came to find a job, but these days when you reach a certain age limit, it is a lot harder to find more employment. Therefore, your entitlement of severance pay Ontario should be a considerable amount.
Therefore, getting your severance pay Ontario is based on a few factors; your age, time in employment, your salary and the position you were employed. Your age and qualifications determines how long it will take you to get a similar position; this is the most important factor according to the courts.