When Ontario courts assess whether an employee has been wrongfully dismissed, they often start by referencing the 1960 decision of Bardal v. Globe & Mail Ltd., 1960 CanLII 294 (ON SC).
Bardal directs courts to consider several factors specific to the employee when determining appropriate severance, including: 1) character of the employment; 2) length of service; 3) age at the time of termination; and 4) availability of similar employment.
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.
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.
Vey Willetts LLP is pleased to announce the launch of the first Severance Pay Calculator tailored specifically for the needs of employees and businesses in Ottawa and Eastern Ontario.
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.
