Do I Have to Accept Salary Continuance as Part of my Severance Package?

There is no shortage of ways to structure a severance package. A common way for employers to attempt to terminate an employee's employment, while keeping cash flow in check, is to provide the dismissed employee with "salary continuance," i.e. payment of salary over a period of time, rather than paying the employee a lump sum. A question that I am often asked is, can the employer legally require the employee to accept salary continuance?

Like most of the answers in our series Answers to Common Questions, the answer is "it depends"

Can You Be Fired For a Good Deed?

It has been said that no good deed goes unpunished. That saying was apparently proven this week when an Ottawa-area woman was allegedly fired for confronting a customer about leaving a dog in his car while he shopped.

The story has received much media attention. On Thursday, a story appeared in the Ottawa Citizen in which former Wal-Mart employee Carla Cheney alleged that she was fired for confronting a customer after witnessing him lock his Newfoundlander in his car. (Story here: Wal-Mart worker says she was fired for confronting customer over dog locked in car.) According to Environment Canada, temperatures measured at the Ottawa airport for the day on which she confronted the customer ranged from a low of 16.2 degrees at 11:00 PM to a high of 23.4 at 2:00 PM.

In a follow-up story in the same paper, Wal-Mart says employee wasn't fired for trying to help dog, it was reported that Wal-Mart denied, via a Facebook post, that Cheney was fired for trying to help the dog. Wal-Mart declined to say why she was fired, however, citing respect for Cheney and privacy concerns.

The questions some have asked are: "Is this legal?" "Is this allowed?" "Is this just cause?" and "Is this right?" Allow me to muse.

If I Reject a Severance Offer Does it Mean I Get Nothing?

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If you get fired and your employer offers a severance package what happens if you think, or are told, that the package is not fair or reasonable? The short answer is that you should advise your employer that you are rejecting their offer and want to be paid more. But, as I am often asked, does that mean that the employee may end up getting nothing?

The answer to the question, "If an employee rejects a severance offer will he or she get nothing?", is almost certainly "no."

Ambiguous Term May Invalidate Non-Competition Agreements

Is the term “United States of America” ambiguous? In a decision with serious potential ramifications for employment law, the Honourable Justice Ellen MacDonald has held that it is.

Like some other cases considered by this blog, TD General Insurance Co. v. Baughan, 2013 ONSC 333, is not strictly speaking an employment law case. The case concerned an Application brought by an automobile insurer, TD, for the court's declaration that the United States Virgin Islands is not part of the “United States of America.” In reply, the insured, Baughan, argued that the term “United States of America” is ambiguous.

The case is of relevance for those in the employment law world because it is not uncommon for a non-competition agreement to list the “United States of America” as a geographic area in which a former employee is prohibited from working. If the term is ambiguous, then arguably the term is unenforceable.

Do You Have to Sign a Release to Get a Severance Package?

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Do you have to sign a release to get a severance package in Ontario? For most employees who find themselves suddenly unemployed, a severance package is often accompanied by a "Full and Final Release Agreement." The employee is often told that, in order to receive the severance package he or she will have to sign the Full and Final Release.

Releases often contain language that essentially says that in consideration of the receipt of the amount offered the employee agrees to waive all claims for wrongful dismissal damages, Human Rights damages, claims for vacation pay and other statutory entitlements, and, less frequently, claims to the Workplace Safety and Insurance Board.

Is an employee legally obligated to sign such a document in order to receive his or her severance package? The answer is "no, but."

How Much Time Do You Have To Consider A Severance Package?

How much time do you have to consider a severance package under Ontario law? The answer can both simple and complex.

The simple answers are that you have as long as your employer gives you and that there is no time limit imposed by the Ontario Employment Standards Act, 2000. So, on the one hand, if your employer gives you a week, you arguably have a week. But, you can also have more time than what the employer says.

Where the issue arises for most employees who find themselves suddenly unemployed is when employers only give the employee a very short period to consider the offer, say one or two days. The offer usually comes with a time limit and a threat that if the offer is not accepted by the deadline, then the employer will only pay the employee the minimum amount required by law.

Two questions come emerge: What is the reasonable time limit? And can an employer arbitrarily impose any time limits?

What Does it Mean to be a Volunteer under Ontario Employment Law?

What is a "volunteer" under Ontario employment law? The question is more complicated than it might first appear. Most people know what a volunteer is: it is someone who freely gives of their time, usually towards some altruistic purpose. But what is the difference between a "volunteer" and a wrongfully unpaid worker?