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A severance agreement isn’t just a payment document—it’s a legal exchange. The employer offers new compensation or benefits, and the employee typically releases potential legal claims and accepts certain post-employment obligations. Both sides should understand that trade-off before signing. These agreements often arrive at a difficult moment. The employer wants finality, and the employee may […]
Employers that terminate or mutually agree to part ways with an employee may negotiate, elect to enter, or be obligated by an existing employment agreement to enter into a severance agreement with the departing employee. A severance agreement is an arm’s length agreement between employer and departing employee that serves many purposes and is highly […]
From time to time, you may be faced with the opportunity to “outsource” an employee’s talent to your competition. This article covers some strategies for accomplishing such a maneuver while reducing the risks to your organization.
A new survey confirms there are major changes afoot in severance and separation benefits that will dramatically impact employer brand and talent management.
by Hannah Roskey For Canadian employers, navigating the distinction between resignation and termination can be tricky. If an employee resigns, there is no entitlement to severance. If an employee is terminated without cause, the employer is on the hook for termination pay (and possibly severance pay in Ontario and the federal jurisdiction). The recent Alberta […]
by Jacqueline Gant For employers shutting down operations, providing working notice is often the best way to reduce severance amounts owed. Except when it’s not. In McLeod v. 1274458 Ontario Inc., an Ontario court confirmed that working notice is appropriate only for employees capable of working during the notice period. Facts The employer sold furniture […]
by Rachel Younan Recent case law has overwhelmingly rejected termination clauses that purport to limit an employee’s entitlements upon termination to the minimum notice required by applicable employment standards legislation. In Ontario, provisions that have failed to reference severance pay and/or benefit continuation have been found to be invalid, resulting in common law notice that […]
By Kara E. Shea Tennessee’s Unemployment Insurance Accountability Act, which takes effect September 1, amends the state’s unemployment statute in ways helpful to employers. For instance, the new law defines what constitutes “making a reasonable effort to secure work” for the purposes of unemployment insurance eligibility. It specifies that “making a reasonable effort to secure […]
By Gulu Punia Successful headhunting can add significant value. But employers must be careful that they don’t become the hunted. As with any hunt, there are risks that may not be obvious. In the employment context, a Canadian employer may be on the hook for extended severance or risk an action from the previous employer […]
by Kara Shea One hopeful sign that our economy is perhaps inching back in the right direction is the number of calls I’ve received in recent weeks from clients inquiring about hiring back employees let go during a reduction in force (RIF). Some employers have told me they’re contemplating bringing back certain positions, or even […]