An employee that is let go from a job is entitled to compensation. This is referred to as severance pay, termination pay or pay in lieu of notice. How much compensation, depends on a number of factors, including the person’s age, the length of employment, the type of job and whether the person signed a contract of employment. The only way an employer can completely avoid paying the employee this compensation is if it has “cause” to terminate the employment as a result of the employee’s wilful misconduct. That is extremely difficult for the employer to prove.
The entitlements are NOT 1 week’s pay for every year of service, or any other such formula. Every case is different. The severance calculator allows an employee or employer understand their rights and obligations and find out how much severance pay is owed.
To find out more about severance pay, termination and wrongful dismissal, please visit stlawyers.ca.