Chapter 13

Question 1

What are the ESA termination requirements for the termination and severance pay?

Answer 1

i) Notice of termination or pay in lieu of notice
ii) Mass termination provisions
iii) Severance pay

Question 2

When is an employee terminated?

Answer 2

i) dismisses or stops employing the employee
ii) lays the employee off for a period exceeding
that of a temporary layoff, or
iii) constructively dismisses the employee and the employee resigns in response
Ranges from 1 to 8 weeks notice depending on the employee’s length of service:
• Under 3 months - none
• 3 months to 1 year – 1 week’s notice
• 1 – 3 years - 2 weeks’ notice
• 3 – 4 years – 3 weeks’ notice

Question 3

What are the mass termination requirements?

Answer 3

where the employer is
terminating 50 or more employees in a period of
4 consecutive weeks, special notice requirements
apply.
• 8 weeks’ notice where 50 – 199employees
• 12 weeks’ notice where 200 - 499 employees
• 16 weeks’ notice where 500 or more
employees

Question 4

What are the Exceptions to Individual or Mass

Notice of Termination Requirements?

Answer 4

Term or Task Employee
Temporary Layoffs
Wilful Misconduct, Disobedience, or Wilful
Neglect
Refusal of Reasonable Alternative Work
Return After Recall
Strikes
Construction and Shipbuilding
Frustration of Contract

Question 5

Who does severance pay apply to?

Answer 5

Applies to a terminated employee:
• 1. Who has worked for employer for 5 or more years
AND
• 2. Whose employer has Ontario payroll of $2.5 million
or more OR
• 3. Whose employer has severed 50 or more
employees in previous 6 months as part of business
closure.

Question 6

How do you calculate severance pay?

Answer 6

Employee gets one week’s severance for each year employed with that employer
Partial years are credited
The maximum amount is 26 weeks’ pay.
Where parties agree, (or Director of ESB approves) severance pay may be paid in instalments over a maximum of 3 years.