Reasonable notice/termination pay and severance are different. An employee is entitled to severance when:
They have been terminated without cause after five or more years of service with a company; and
(i) The employer has a payroll of $2.5 million per year; or
(ii) 50 employees have lost their jobs over a six-month period.
If an employee pursues benefits while temporarily laid off, can the employee go back to work afterwards?
If an employee has been temporarily laid off and is entitled to receive employment insurance, the employee will still be able to go back to work afterwards. Receipt of employment insurance will not influence the employee’s ability to return to work once the temporary layoff has ended.
Not necessarily. A temporary layoff does not, in and of itself, carry with it an entitlement to any benefits.
If an employee has been terminated with just cause, they will not be entitled to reasonable notice or pay in lieu of notice.
If an employee has been terminated without cause, they may be entitled to reasonable notice or pay in lieu of notice.
If the termination is for just cause, the employee may want to seek legal advice.
If an employer has legally placed an employee on a temporary layoff, the employee will not be entitled to reasonable notice. If you have questions about the legality of your layoff, you may want to seek legal advice.
If the layoff was legal, employment insurance may be an option for the duration of the layoff.
If your layoff was illegal, it may amount to constructive dismissal, and the employee could be entitled to reasonable notice or pay in lieu of notice.
A layoff is a temporary stoppage of the employment relationship. This typically takes place in seasonal employment relationships, or where there is a shortage of work. In a layoff, the employee has an expectation of being called back to work in the future.
A termination represents the end of an employment relationship. Terminations can be for cause or without cause. When an employee is terminated without cause, they are entitled to reasonable notice of termination or payment in lieu of notice.
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