Module 8 - Calculating Termination Pay

Question 1

What needs to be determined first in order to calculate termination pay?

Answer 1

How many weeks the employee is entitled to (by their length of service - rounded down to the completed year)

Question 2

If an employee is entitled to 7 weeks of notice, how many weeks of termination pay will they be entitled to under the ESA?

Answer 2

7 weeks of termination pay

Question 3

How do you calculate termination pay with employees who have erratic work weeks?

Answer 3

Average the last 12 pay weeks and divide by 12 to get termination pay per week

Question 4

Do employers still have to pay employee’s pension and provide them benefits during their termination notice period?

Answer 4

Yes. Not doing so could result in a wrongful termination

Question 5

Explain the employee’s obligation to mitigate in a wrongful dismissal.

Answer 5

Wrongfully terminated employees with common law entitlements of termination notice and pay have the duty to minimize the impact of their suffering by putting effort in looking for new, similar employment to compensate for the damages.

Employee’s duty to mitigate is not subjected under ESA entitlements.

Question 6

How can an employer be legally entitled to not pay for termination?

Answer 6

Prove that the termination was justified with cause

Question 7

Duty to Mitigate

Answer 7

A terminated employee has the responsibility of seeking alternate employment in order to reduce the damage they may suffer as a result of termination..