Results: Employment Severance Packages

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mandusa

12/02/2024

56

2125

Careers/Work
Understanding a severance package when your employment has been terminated. I could really use some help navigating the offer that my fiance received from his employer.
1.
1.
Recently my fiance was terminated from his job for a shortage of work. His employer has given him a severance package to look over. Have you ever reviewed a severance package?
Yes
22%
470 votes
No
78%
1630 votes
2.
2.
His severance package includes the maximum of eight weeks pay in lieu of notice of termination. Meaning since they did not give him notice and just let him go on the spot, they needed to pay him the maximum 'in lieu of notice' pay which is eight weeks in Ontario. That's a no brainer and we have no questions about that portion. Have you ever been terminated without notice?
Yes
28%
598 votes
No
72%
1502 votes
3.
3.
He's been employed there many, many years. The severance they are offering is one week per year of his employment. In Ontario, that is the lowest legal amount they could offer him. Although we're unhappy about that, it is allowable by the law. Would you be upset if your employer paid you the least amount they could get away with?
Yes
71%
1484 votes
No
29%
616 votes
4.
4.
The next part of his severance package, comes into play after the 'in lieu' and 'severance' amounts have been paid out, it says that the company will keep paying him for an additional 27 weeks. Sounds good on the surface, that would take him right through until October of next year. Have you ever been unemployed for that long?
Yes
31%
649 votes
No
46%
975 votes
Not Applicable
23%
476 votes
5.
5.
Now comes the part of the package that made me want to submit a survey on here to get some feedback. For this 27 weeks that he collects his regular salary, it states that if he finds a new job with a 'non-competitor' during this period of time, they will calculate the remainder of the 27 weeks salary, divide it by 50% and pay him out in a lump sum. On the one hand, if he finds a new job right away, he'll be getting 13.5 weeks worth of pay in a lump sum payment. If he stays unemployed until it runs out in October he will have collected the full 27 weeks worth. Do you think that is a strange offer?
Yes
38%
805 votes
No
23%
480 votes
Undecided
39%
815 votes
Thoughts?
  • is always to the employer's benefit
  • I think if he gets a job now. He can take the 13.5 weeks as a bonus. I would rather do that if I was in the circumstance.
  • That all sounds very fair to me.
6.
6.
Odder still, the offer states that if during that 27 weeks of time he starts a new job with a 'competitor' that he will not be paid out anything further. They did not include a list of who their 'competitors' are so it feels vague and full of loopholes. It also would probably have people wanting to NOT find work because hey, why not sit on your duff until October and receive the full amount. But that would look bad when you finally started going to interviews again, new employers don't like to see a long hiatus in your resume. Has anyone ever heard of this kind of offer before?
Yes
16%
330 votes
No
84%
1770 votes
Thoughts?
  • none
  • I guess this employer is thinking they can run his life. If he has experience in what he is doing and is hired do they expect him to tell him where he is taking a job? So unusual.
  • Sounds logical.
7.
7.
Last question, if anyone is in the Greater Toronto area do you know of a legitimate, decent lawyer that specializes in Employment Law? If so, please pass the information on with my sincerest thanks.
Yes
7%
153 votes
No
26%
551 votes
Not Applicable
66%
1396 votes
Lawyer's Name or Firm Name:
  • Wish I could help
  • DNA
  • Tellwut & Associates LLC

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