Severance Pay

Limitation periods and statutory severance pay: an update

Limitation periods and statutory severance pay: an update

Last April, we wrote about an interesting decision from the Ontario Superior Court concerning when the limitations period begins to run for claims of wrongful dismissal and statutory severance pay. In that case, the Court held that the limitation period to claim unpaid statutory severance pay commences as soon as working notice of dismissal is issued to an employee.

North v. Metaswitch Networks: Ontario's Top Court Confirms the Correct Approach to Employee Severance

North v. Metaswitch Networks: Ontario's Top Court Confirms the Correct Approach to Employee Severance

A recent decision from Ontario's Court of Appeal, North v. Metaswitch Networks Corporation, confirms how the courts in our province will assess an employee's severance entitlement where his/her employment was governed by a written agreement that includes a termination provision.

Long Service Worker Awarded 27 Months' Severance Pay

It is pretty rare that an employee will receive a severance package worth more than 2-years of their salary. In fact, it is generally agreed that there is an informal '24 month cap' on the amount of pay that a dismissed employee will receive in severance.

That said, there are exceptions to every rule. A recent case from the Ontario Superior Court of Justice, Markoulakis v. SNC Lavalin Inc., illustrates what circumstances may produce a severance entitlement above the 24-month cap.