Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Employment and labor laws
Employment and labor laws
Employment and labor laws
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Employment and labor laws
As an international company operating in Canada, you’re well aware of the differences in rules. Payroll is most definitely not the same, and the business taxes you face are also quite different. There may be different regulations around the products or services you offer.
This is also true when it comes to employment legislation and the rules around hiring employees, compensating them for vacation time and leaves, and so much more. Letting an employee go might be another issue. While you hoped never to face it, you now need to terminate someone’s employment with your company.
Severance may be one thing you’re wondering about. How exactly is it handled in Canada?
When Must You Provide Severance?
The first question you’ll need to ask is when
…show more content…
you’ll need to provide severance pay. There are quite a few scenarios. If you dismiss or stop employing the person, they may be entitled to severance pay.
If you’ve gone bankrupt or declared insolvency, you cease to employ the person and they’ll be entitled to severance. If you give employees an ultimatum and they decide to resign as a result, they’re entitled to severance.
If you lay off an employee for more than 35 weeks in a 52-week period, their employment is considered terminated. If you decide to close an office or discontinue business at a location, you’re considered to have laid off the employee.
A Mix of Notice and Severance
If you give an employee written notice of their termination and the employee then resigns with two weeks’ notice, you may be required to pay them severance. This situation would come up if the employee was still entitled to termination pay beyond those two weeks.
Other Reasons to Provide Severance
These aren’t the only scenarios when you may be required to or even want to provide severance to employees. If you need to lay off employees, you might offer a severance package immediately. Employees who opted to take it would be free to seek out other employment.
A restructuring activity may also put severance on the table. Some employees may not like the new terms you’re offering them and, since they’re not the terms they were hired under, they have legal grounds to refuse. You can offer these employees
…show more content…
severance. What Are the Rules? Like virtually everything else in Canada, severance rules differ from province to province. If you operate in Ontario, you’ll need to look at the rules for severance in Ontario. Someone operating in BC will need to look at that province’s legislation. To fully understand severance pay, you’ll need to look at the employment legislation for each province you operate in.
Compensation for Long Service
Generally speaking, severance pay is awarded to employees who have been with your company for some time. They may be senior employees or they may have a long-service track record. Often, they have seniority in the firm and they may even have specific skill sets and expertise. Severance is designed to compensate them for the loss of employment.
As a result, you may wish to offer severance in other circumstances than those required by law. You’re only bound to provide severance in the cases specified by the law, however.
How Do You Calculate It?
Each province lays out its own rules for calculating severance pay. In Ontario, you add together the number of years of employment plus the number of months of an incomplete year. Take the sum and multiply it by the employee’s regular weekly wages. This will give you their weekly severance pay for a maximum of 26 weeks.
Different provinces use different formulations, of course, so severance pay for an employee in BC can’t be calculated the same
way. If you’re concerned about severance pay or need to calculate what it will cost you, talk to a Canadian EOR and payroll service provider. They can walk you through the steps and help you navigate the nuances.
Bennett-Alexander, Dawn D. & Hartman, Laura P. (2001). Employment Law for Business (3rd ed.). New York: McGraw-Hill Primis Custom Publishing. Downloaded February 4, 2008 from the data base of http://www.eeoc.gov
Examples include rumination of an employee due to drug use and layoffs during times of downturn (Noe, Hollenbeck, Gerhart, & Wright, 2014, p. 305). Voluntary turnover is turnover initiated by the employee, often when the organization would prefer to keep them (Noe, Hollenbeck, Gerhart, & Wright, 2014, p. 305). Examples of these are employee retirement, or when an employee takes a job at a different organization. Both turnovers are costly to the organizations, training new hires takes time and money and replacing those works is expensive. Employees that left because of extreme job dissatisfaction can deliver bad publicity and shine an unfavorable light towards the organization in which the employee
Once salaries and overhead are paid, the members of an LLC can determine a method of sharing profits that makes sense for their membership based on seniority or a member’s investment. If a company does not have a defined profit sharing formula, the profit is then shared according to each member's ownership percentage. Profit distributions are not salary. Salary paid to members/employees gets taken out of revenue prior to determining the amount of profit available to
punishable by removal, or, if the agency refuses to remove the employee, by forfeiture by the affected state or locality of
Which means that employees have the right to quit a job at any time for any reason and the employer can also do the same by the employee. Generally, these types of situations are for employees that do not have contracts, are hourly wage employees and minimum wage. Title VII of the Civil Rights Act of 1964 prevents any employer from firing any employee based off their race,
The law specifies the facts that can prompt employers to terminate employees from work, hence they are not allowed to terminate them at will (Fisher & Putman, 2016).
...gree and believe that they could get real results if everyone would consistently apply the company’s principles. I have learned personally in the business world consistency means a lot, all employees should have the same consequences. By letting go employees, managers and executives shows that the rules apply to all levels. It will cause everyone involved to have more respect for the company even if they don’t agree with the decision.
First things first, termination of employment and employment contracts. There are a lot of significant differences in this domain between the US and EU, but foremost is that in the United States there is no legal requirement for an explicit labor contract. Most employment is on an at-will basis, which means that either the employer or employee can terminate the employment without any prior notice at any given point of time if the reasons for this are lawful. Notably, American federal laws and the US Fair Labor Standards Act do not mandate that employers should notify their employees before termination. An employer can fire an employee for any reason other than discrimination, retaliation, defamation, breach of explicit contract or fraud. On the contrary, in...
... for unproductive works to remain in their positions is inaccurate and the same rules of work apply to individuals in both at will and due process contracts.
Length of service should play a role in making decisions for a reduction-in-force in a non-union organization but it should be taken into consideration along with skill level. An employee should not keep his or her job simply because they have been with the organization for several years. Each employee would need to be reviewed not only on how long they have been with the organization, but on his or her performance as well.
United States of America. National Employment Law Project. National Employment Law Project. N.p., Jan. 2011. Web. 18 May 2014.
It is very difficult for the remaining employees to continue being productive for many reasons. These people that remain are now the same people responsible to improve the profitability of the organization. Left to work in an environment where an employee feels they have no control over their future, none the less their day to day employment status. They are asked to continue to work not knowing if they or one of their associates or colleagues will be in the next round of layoffs. They have to carry the guilt of being able to continue working while their friends and coworkers are now seeking employment elsewhere. This can have dramatic negative effect on teamwork and one can see a how a metaphor can be drawn between this and troops that go to war do not want to make friends with someone who may die the next day. In that the person you are working with may be the next one to suffer the consequences of downsizing.
Schliwen, A., Earle, A., Hayes, J. and Heymann, S., 2011. The administration and financing of paid sick leave. International Labour Review, 150 (1-2), pp. 43-62.
An employer may dismiss an employee for a fair reason - this means the dismissal is substantively fair and if the employer has followed a fair procedure - the dismissal is procedurally fair.
On the other hand, the rights of the employee must be expressly complied with to prevent possible cases of constructive dismissal. We have seen that employees still have the right to be paid their usual salary and benefits while they are out on garden leave, that the term for such should not be exceeded, that their lawful right to work is not infringed and that their statuory and contractural rights are not affected. It is not necessarily a dream way to leave a job as it can have many implications and complications on the employee when seeking future employment.