Scenario X Flashcards
Data Masters is a large privately held company that conducts business in multiple locations in the Greater Toronto Area. Its annual payroll is $12 million. Data Masters recently lost a significant customer and has taken 2 cost-saving measures: it eliminated a non-essential position, and it decided to temporarily lay off the employees in the data service department at the company’s Dundas Square location. The department employed 60 people whose lengths of service ranged from 2 to 4 years. Evan is the employee whose position has been eliminated. He was asked to leave immediately and was assured that Data Masters would meet all requirements of the Employment Standards Act, 2000. He has also been advised that he may be eligible for severance pay under the Act. Evan had been employed continuously by Data Masters for 12 years, receiving an annual salary of $40,000 and 2 weeks’ annual vacation. He also participated in a comprehensive benefits plan that included short- and long-term disability benefits, health and dental coverage, and life insurance. The benefits plan is provided by a third-party insurance company. Data Masters pays 100% of the premiums associated with the plan. Data Masters employs 10 people in Evan’s role; Evan is the only one whose position was eliminated. How many weeks of termination pay in lieu of notice is Evan entitled to according to the Employment Standards Act, 2000? a. 8 weeks b. 12 weeks c. 20 weeks
Correct answer is A: 8 weeks The Employment Standards Act, 2000, provides that an employee with 3 months or more of continuous service is entitled to receive 1 week of notice (or pay in lieu of such notice) to a maximum of 8 weeks wages.
Data Masters is a large privately held company that conducts business in multiple locations in the Greater Toronto Area. Its annual payroll is $12 million. Data Masters recently lost a significant customer and has taken 2 cost-saving measures: it eliminated a non-essential position, and it decided to temporarily lay off the employees in the data service department at the company’s Dundas Square location. The department employed 60 people whose lengths of service ranged from 2 to 4 years. Evan is the employee whose position has been eliminated. He was asked to leave immediately and was assured that Data Masters would meet all requirements of the Employment Standards Act, 2000. He has also been advised that he may be eligible for severance pay under the Act. Evan had been employed continuously by Data Masters for 12 years, receiving an annual salary of $40,000 and 2 weeks’ annual vacation. He also participated in a comprehensive benefits plan that included short- and long-term disability benefits, health and dental coverage, and life insurance. The benefits plan is provided by a third-party insurance company. Data Masters pays 100% of the premiums associated with the plan. Data Masters employs 10 people in Evan’s role; Evan is the only one whose position was eliminated. Evan contacts the HR department to ask whether he will have access to benefits in the weeks after his termination. What should he be told? a. His benefits will be terminated on his last day of work. b. His benefits will be continued during his termination pay period under the Employment Standards Act, 2000. c. His benefits will be terminated 15 days after his last day of work.
Correct answer is B: His benefits will be continued during his termination pay period under the Employment Standards Act, 2000. The Employment Standards Act, 2000, requires that the employer not reduce the employee’s wage rate or alter any other term or condition of employment and, further that it continue to make whatever benefit plan contributions would be required to be made in order to maintain the employee’s benefits under the plan until the end of the notice period under the Employment Standards Act, 2000.
Data Masters is a large privately held company that conducts business in multiple locations in the Greater Toronto Area. Its annual payroll is $12 million. Data Masters recently lost a significant customer and has taken 2 cost-saving measures: it eliminated a non-essential position, and it decided to temporarily lay off the employees in the data service department at the company’s Dundas Square location. The department employed 60 people whose lengths of service ranged from 2 to 4 years. Evan is the employee whose position has been eliminated. He was asked to leave immediately and was assured that Data Masters would meet all requirements of the Employment Standards Act, 2000. He has also been advised that he may be eligible for severance pay under the Act. Evan had been employed continuously by Data Masters for 12 years, receiving an annual salary of $40,000 and 2 weeks’ annual vacation. He also participated in a comprehensive benefits plan that included short- and long-term disability benefits, health and dental coverage, and life insurance. The benefits plan is provided by a third-party insurance company. Data Masters pays 100% of the premiums associated with the plan. Data Masters employs 10 people in Evan’s role; Evan is the only one whose position was eliminated. Is Evan entitled to severance pay under the Employment Standards Act, 2000? a. Yes, because he was employed for more than 5 years in a company whose payroll is greater than $2.5 million. b. Yes, because he was employed for more than 10 years in a non-supervisory role. c. Yes, because he was employed for more than 10 years in a company whose payroll is greater than $5 million.
Correct answer is A: Yes, because he was employed for more than 5 years in a company whose payroll is greater than $2.5 million. Section 64(1) of the Employment Standards Act, 2000.
Data Masters is a large privately held company that conducts business in multiple locations in the Greater Toronto Area. Its annual payroll is $12 million. Data Masters recently lost a significant customer and has taken 2 cost-saving measures: it eliminated a non-essential position, and it decided to temporarily lay off the employees in the data service department at the company’s Dundas Square location. The department employed 60 people whose lengths of service ranged from 2 to 4 years. Evan is the employee whose position has been eliminated. He was asked to leave immediately and was assured that Data Masters would meet all requirements of the Employment Standards Act, 2000. He has also been advised that he may be eligible for severance pay under the Act. Evan had been employed continuously by Data Masters for 12 years, receiving an annual salary of $40,000 and 2 weeks’ annual vacation. He also participated in a comprehensive benefits plan that included short- and long-term disability benefits, health and dental coverage, and life insurance. The benefits plan is provided by a third-party insurance company. Data Masters pays 100% of the premiums associated with the plan. Data Masters employs 10 people in Evan’s role; Evan is the only one whose position was eliminated. Data Masters is considering laying off all 60 employees in the data service department at the Dundas Square location for 24 weeks and then recalling them during the busier period of the year. Tristan, the director of HR, provides a word of caution about the plan. What warning should he give? a. Seasonal layoffs are acceptable only in agriculture-related businesses. b. As long as the company can demonstrate through clear evidence that there is a financial reason for the layoff, a 24-week layoff is acceptable. c. Data Masters will have to continue the employees’ benefits if it wishes to conduct a 24-week layoff.
Correct answer is C: Data Masters will have to continue the employees’ benefits if it wishes to conduct a 24-week layoff. Section 56(2) of the ESA defines a temporary layoff as one of not more than 13 weeks in any period of 20 consecutive weeks. Although it is possible to have a temporary layoff of more than 13 weeks, this could require the employer to continue “substantial payments” to the employee, or provide benefits. A layoff of more than 13 weeks in any period of 20 consecutive weeks, but less than 35 weeks of layoff in any period of 52 consecutive weeks, needs the employer to continue some form of benefits continuation which includes pension plan contributions.
Data Masters is a large privately held company that conducts business in multiple locations in the Greater Toronto Area. Its annual payroll is $12 million. Data Masters recently lost a significant customer and has taken 2 cost-saving measures: it eliminated a non-essential position, and it decided to temporarily lay off the employees in the data service department at the company’s Dundas Square location. The department employed 60 people whose lengths of service ranged from 2 to 4 years. Evan is the employee whose position has been eliminated. He was asked to leave immediately and was assured that Data Masters would meet all requirements of the Employment Standards Act, 2000. He has also been advised that he may be eligible for severance pay under the Act. Evan had been employed continuously by Data Masters for 12 years, receiving an annual salary of $40,000 and 2 weeks’ annual vacation. He also participated in a comprehensive benefits plan that included short- and long-term disability benefits, health and dental coverage, and life insurance. The benefits plan is provided by a third-party insurance company. Data Masters pays 100% of the premiums associated with the plan. Data Masters employs 10 people in Evan’s role; Evan is the only one whose position was eliminated. Bill, Data Masters’ operations manager, has heard that with the layoffs and Evan’s termination, employees are worried about their futures with the company. Bill heard a rumour that Kim, an accounting clerk who occasionally works with the data service department at Dundas Square, contacted a trade union to see if it could provide the laid-off workers with some protection from losing their jobs. Kim has been asking co-workers during lunch if they would be interested in joining the union. Kim is an excellent employee, with no discipline on her file, although she showed up for work 10 minutes late a couple of days ago because of car trouble. Bill is concerned that a trade union will organize the employees. He would like to terminate Kim’s employment for cause. He asks Tristan, the HR director, for advice. What should Tristan advise Bill about his plan? a. Given that Kim works closely with the data service department, Bill should take the position that her termination falls under the restructuring of the department and would be justified. b. Kim should be terminated without cause and the company should argue that being 10 minutes late is a breach of policy and justified the termination (albeit without just cause). c. If any part of the decision to terminate Kim is based on her having spoken with a union and asking employees to join the union, this would be an unfair labour practice under the Labour Relations Act, 1995.
Correct answer is C: If any part of the decision to terminate Kim is based on her having spoken with a union and asking employees to join the union, this would be an unfair labour practice under the Labour Relations Act, 1995. The Labour Relations Act, 1995, provides that it would be an unfair labour practice to terminate her employment if any part of that decision was based on anti-union motive/animus. Here the timing of the termination and the reasons would support a finding of unfair labour practice.
