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Termination & Severance

Elise, Danielle, Sarah, Matt, Scott

Case Study #1

Anne has worked for ABC Inc for four months. The company is non-unionized. She didnt sign a contract for an extended probation period. She has been consistently 30min-1hr late for work. She has had one disciplinary meeting with her supervisor in which she was told that her lateness is unacceptable and could result in termination.

- Anne knew what was expected of her

- Anne had a warning- with immediate consequences provided

- Anne is not in probation period anymore so just cause is NEEDED.

- reason: misconduct (lateness, time, six day allowances)

Does Anne's employer have the right to terminate her employment?

Challenges

Introduction

Recommendations

Section 64 of the Employment Standards Act

Case Study #2

  • Created a process for employers to follow while terminating employees
  • Was believed to be fairly clear initially
  • Since initially implemented in 2000, there have been a number of modifications
  • Creates precedents and these are added to the ESA

Have you ever been fired or had an experience with firing?

Bill has worked for Ford Motor Company for 35 years. Bill is 3 years away from retirement. He has had a string of heart issues where he has had sick leave, taken sick days and has had to leave work on multiple occasions. He has documentation and proof for his illnesses. He is called into his supervisors office one wed afternoon and is terminated. He receives four weeks pay in lieu of notice of termination. His severance package is noticeably low.

A. The employment relationship ended due to a permanent discontinuance of the employer’s business and the employee is one of at least 50 employees who have had their contract severed in the last six months as a result

OR

B. The employer has a payroll of $2.5 million or more.

• Paquette c. Quadraspec Inc.

  • Ontario and Quebec’s payroll combined met the $2.5 million threshold

Discuss Bill termination

Case Study #2

Areas covered:

- Bill needs 8 weeks notice of termination or pay in lieu notice

- Just cause?

- Severance pay: years of service, skills

- issues with retirement

  • Hours of work
  • Minimum wages
  • Overtime pay
  • Public holidays
  • Vacation with pay
  • Termination
  • Severance pay
  • Rights to pregnancy
  • and parental leave
  • Non-discrimination in employment-related benefit plans
  • Equal pay for equal work
  • Protection of employees and dismissals
  • Protection of employees against lie detector tests
  • Sunday retail workers

History

Recent Changes in the ESA

Employment Standards Act

  • First appeared in 1968
  • ESA replaced previous legislation
  • Outlines minimum employment standards
  • Employers can choose to go above and beyond
  • Actual definition of what constitutes termination was changed in the year 2000
  • An employee who has worked within the same corporation or company for more than five years
  • Changes for seasonal employees
  • Severance Pay
  • Employee Protection

Termination

Termination consists of:

Cause for Termination

- The ESA outlines the minimum standards employees and employers must follow follow

Notice of Termination

  • when an employer dismisses or stops employing an employee
  • constructively dismisses an employee and the employee resigns
  • an employer lays off an employee for a period of that is longer than a temporary lay-off

- standard of cause is extremely high- falls on HR

Burden of proof falls on employer

  • Willful misconduct: intended results to occur. (alcohol, reckless, fraud)
  • Disobedience: rule was communicated. Know is advance that disobedience could result in firing.
  • Willful neglect of duty: employee's performance

Severance

- Pay in place of required notice of termination (termination pay)

- Severance pay compensates an employee for loss of seniority and specific skills and recognized years of service (ESA standards)

ESA section 54:

- not able to fire employee with 3+ months without: notice of termination or pay in lieu of notice. (under 1 yr= 1 week, 5-6yr=5 yrs)

The End! You're Fired!

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