Section 14 Flashcards
Ximena is terminated after 15 years of employment as a salesperson with Only the Best Motors, a large car dealership in Sudbury, Ontario. Ximena relied on the comprehensive benefits package she received during her time at the dealership, and she is concerned about the effects of losing it. She is also worried about her loss of income, which was derived mostly from bonuses and commissions. Ximena is particularly worried about how she will be compensated for her lost bonuses in her termination package. Throughout the year, she received 2 commission payments each month, quarterly bonuses, and a large year-end bonus. She would often receive a discretionary bonus from her employer as well. Part of Ximena’s benefits package included the use of a company vehicle. During her employment, Ximena had been able to select any model the dealership currently sold and use it for both business and personal use. She was also compensated for any mileage she accrued while using the vehicle for work. Lauren, the HR generalist for the car dealership, is handling Ximena’s termination. Ximena wants to know what will happen to her benefits package during her termination notice period. What should Lauren advise her? a) Her benefits will cease as of the date of her termination, without compensation. b) Her benefits must continue throughout her notice period. c) Her benefits can either continue throughout her notice period or the employer will have to compensate Ximena for their loss.
The answer is c. Her benefits can either continue throughout her notice period or the employer will have to compensate Ximena for their loss. Functional Area: A1 Rationale(s): A is incorrect. Her benefits may not continue but she will be compensated for the loss if this is the case. B is incorrect. Ximena may instead be compensated for loss of benefits. C is correct. One of these 2 options will occur, based on her specific circumstances. Reference(s): Filsinger, 2015, pp. 451-453. Employment & Human Rights Law in Canada: “Benefits during the Notice Period” (http://www.canadaemploymenthumanrightslaw.com/2012/08/benefits-during-the-notice-period/).
Ximena is terminated after 15 years of employment as a salesperson with Only the Best Motors, a large car dealership in Sudbury, Ontario. Ximena relied on the comprehensive benefits package she received during her time at the dealership, and she is concerned about the effects of losing it. She is also worried about her loss of income, which was derived mostly from bonuses and commissions. Ximena is particularly worried about how she will be compensated for her lost bonuses in her termination package. Throughout the year, she received 2 commission payments each month, quarterly bonuses, and a large year-end bonus. She would often receive a discretionary bonus from her employer as well. Part of Ximena’s benefits package included the use of a company vehicle. During her employment, Ximena had been able to select any model the dealership currently sold and use it for both business and personal use. She was also compensated for any mileage she accrued while using the vehicle for work. Lauren, the HR generalist for the car dealership, is handling Ximena’s termination. Which of the following is least likely to be reflected in Ximena’s termination package? a) Her commissions. b) Her year-end bonus. c) Her discretionary bonus.
The answer is c. Her discretionary bonus. Functional Area: A1 Rationale(s): A is incorrect. As these are regular and expected, they will likely be included. B is incorrect. This will likely be included as it is a regular bonus. C is correct. As this bonus is handed out irregularly, and at her employer’s discretion, it does not need to be included in her termination package. Reference(s): Filsinger, 2015, pp. 451-453.
Ximena is terminated after 15 years of employment as a salesperson with Only the Best Motors, a large car dealership in Sudbury, Ontario. Ximena relied on the comprehensive benefits package she received during her time at the dealership, and she is concerned about the effects of losing it. She is also worried about her loss of income, which was derived mostly from bonuses and commissions. Ximena is particularly worried about how she will be compensated for her lost bonuses in her termination package. Throughout the year, she received 2 commission payments each month, quarterly bonuses, and a large year-end bonus. She would often receive a discretionary bonus from her employer as well. Part of Ximena’s benefits package included the use of a company vehicle. During her employment, Ximena had been able to select any model the dealership currently sold and use it for both business and personal use. She was also compensated for any mileage she accrued while using the vehicle for work. Lauren, the HR generalist for the car dealership, is handling Ximena’s termination. When accounting for Ximena’s loss of her company vehicle, what compensation should Lauren include in the termination package? a) None, as the car belongs to the dealership. b) Compensation for losing the use of the vehicle, but not for the mileage. c) Compensation for losing the use of the vehicle and for the mileage.
The answer is b. Compensation for losing the use of the vehicle, but not for the mileage. Functional Area: A1 Rationale(s): A is incorrect. As the vehicle was also for personal use, Ximena should be compensated for its loss. B is correct. As the mileage depended on her employment at Only the Best Motors, Ximena will not be compensated for its loss. C is incorrect. Ximena will receive compensation only for losing the right to use the vehicle. Reference(s): Filsinger, 2015, p. 451.
