Need Legal Advice (Upperdeck??)

[Kip Powick]

I have a friend who will be terminated in three weeks. This friend has been told that they will receive "continuing severance pay", (no lump payment), after the termination but should this person find other employment, in any other job, (ie: McDonalds/Tim Hortons/IBM etc.) after being terminated, the "continuing severance pay" will be stopped. This person has worked at this place for over 10 years.

All I want to know is.........is this legal?

I have never heard of any such law that allows this and I have read all the Ontario Labour codes etc I can find on the INet but once again I can not find anything that states that the employer has the right to stop on going severance pay, (until the total amount has been paid...due the terminated employee) should the terminated employee find another job ...after being terminated.

Thanks...

[CD]

Found info on the 'installment plan' but like you, nothing that indicates the employer may withold the remainder:

When to Pay Severance Pay

An employee must receive severance pay either seven days after the employee's employment is severed or on what would have been the employee's next regular pay day, whichever is later.

However, an employer may pay severance pay in installments with the written agreement of the employee or the approval of the Director of Employment Standards, Ministry of Labour. An installment plan cannot be for more than three years. If an employer fails to make a scheduled payment, all of the employee's severance pay becomes due immediately.

Ontario Ministry of Labour: Severance Pay

[Super 80]

I have gotten the same deal twice, although it took a good long time to find another job so it never really mattered.

[Moon The Loon]

Kip, my ex-brother in law (caps omitted intentionally) has been dismissed from TWO jobs in the past 15 years (non aviation). His dismissal terms were full annual payment until a subsequent job was secured. The second dismissal had a two year provision. Both times, he sat at home until both terms ran out, then started looking for work. The first time it happened, he actually found work quite quickly. As he has now been fired from the latest job, he is virtually unemployable, for reasons I won't go into here. Hence the ex- designation.

Each hiring situation has its own terms and conditions. Look at countless CEO's over the past 25 years who have gone into failing companies, with their own incredible credentials, then sat with their feet up on the desk waiting to be fired. They don't care because one of their conditions of employment was an unbelievable severance package, for which they simply waited.

[deicer]

Best advice is:

Do Not Sign Anything!

Until you have taken the deal to a lawyer and received proper advise.

Iceman

[conehead]

Kip; I have a relative who took a severance package from his employer, (a large corporation) which included his continuing to be paid for one year after leaving the company. But he was allowed, actually encouraged, to find other work, and the first employer would continue to pay him for the year.

Best advice is, take the agreement to a labour lawyer. They charge wildly different fees, but for a relatively small fee, he will give you an hour of his time to look over the agreement, and offer his advice.

[Kip Powick]

Thanks to all. I have advised my friend to seek guidance from a labour lawyer and to the best of my knowledge my friend has not signed anything yet...other than their contract many years ago. I am sure the lawyer can sort it out. I'll update the result as termination is 26 November.

[J.O.]

I contacted an acquaintance who went through the same thing a while back and he said that his former employer had also proposed an installment plan for his severance. His lawyer told him to decline and he's glad he did as that employer is no longer in business (no it wasn't in the aviation biz). He took the money and set up a plan to pay out regular installments so that he couldn't burn it all up too fast.