Chapter 15 Flashcards
What does an ER need to do If an employee is dismissed without just cause?
the employer must provide advance notice or pay in lieu
(instead) of notice or combination of both
What is wrongful dismissal?
dismissal of an employee without the employer granting the employee reasonable notice of termination
What is “Reasonable Notice”?
-Must at least meet ESA minimums
-To meet common law requirements,
-case-by-case basis
-there is no rule of thumb (a very general rule of thumb = 1 month per year of service (under common law))
What are the factors ER must consider under reasonable notice?
- the employee’s age (the older, the more difficult it is to find a comparable position, therefore the higher the amount of reasonable notice)
- the employee’s position (the more specialized or the higher the job level, the higher the amount of reasonable notice)
- the employee’s length of service (the longer, the higher the amount of reasonable notice)
- the employee’s level of compensation (the higher, the higher the amount of reasonable notice)
- the amount of time it would take to find alternate employment (the longer, the higher the amount of reasonable notice)
What are the secondary factors ER must consider under reasonable notice?
- lured,
- reason for dismissal,
- manner of dismissal/how employee was treated during dismissal,
- relevant personal circumstances (health, ability to relocate, pregnancy)
How do you structure the separation package?
may consist of:
• Lump-sum payment
• Salary continuation
• Combination
What is mitigation?
when the employee takes all reasonable steps to find comparable alternate employment
how can an employer avoid constructive dismissal claims ?
- obtain employee consent and provide the necessary consideration,
- provide employee with reasonable notice of the change and explain the consequences
What are the basic entitlements for wrongful dismissal notice damages?
Employees must be compensated for lost wages and benefits during the notice period. 1. Salary 2. Benefits 3. Company Vehicle 4. Insurance 5. Bonuses 6. Stock Options 7. Pension Entitlements 8. Work-related expenses (N/A)
What are some suggestions to Minimize the Potential for
Lawsuits?
- Hire Intelligently
- Include and Update a Termination Clause in
Employment Contracts - Make Use of Probationary Periods
- Create a Paper Trail
- Provide Reasonable Notice of Changes
- Determine Whether a Just Cause Claim is
Sustainable - Absent Just Cause, Determine the
Appropriate Notice Period - Handle Terminations Professionally
- Provide Outplacement Counselling
- Get a Signed Release
- Carefully Consider All Issues When
Providing a Letter of Reference