Are retraining costs covered by Federally Regulated Employee severance pay?
retraining costs covered by Federally Regulated Employee severance pay
A severance pay package is typically provided to employees who are terminated or laid off. This is a way for an employer to show that they are a good corporate citizen and care about their employees. It can help employees feel supported during a difficult transition.
The terms of a severance pay package should be outlined in the employee’s policies or employment contract, and may differ by jurisdiction. Employers should consult with a legal professional to understand their obligations under applicable laws and business practices.
In the United States, Federally Regulated Employee severance pay is often tied to a length of service. It is a common practice in many industries to offer severance pay, but there is no requirement under federal law to do so. Some state laws do require severance pay, however, for public employees or during certain business closures.
Are retraining costs covered by Federally Regulated Employee severance pay?
As of Feb. 1, Canada’s federally regulated employees are entitled to up to eight weeks of notice or pay in lieu of notice when an employer dismisses 49 or fewer workers without cause. This is a significant increase from the previous requirement of two weeks across the board. The new provisions are in line with a trend to modernize employment standards legislation and better protect employees, said Stuart Rudner, an employment lawyer with Rudner Law in Markham, Ontario.
“The new requirements are a welcome step towards fairness and providing employees with more notice to search for new jobs,” Rudner said. “We hope the Canadian Labour Program, which investigates and enforces federal employment standards, will continue to monitor compliance and take enforcement action as necessary.”
The definition of “employment loss” also has been expanded from the previous rule to include not just employees who are dismissed in a mass layoff, but also those who resign, are offered transfers to another site and accept them and those who are involuntarily let go or retire. The rules also clarify that the definition of workers who qualify for notice or telecommunication employee severance pay does not include contractors, freelancers and independent workers.
Several commenters noted that the new rules should be amended to exclude “net employment loss” where an employer lays off one group of workers and simultaneously hires other workers to perform the same work on a different aspect of it, or where a government service contractor loses its contracts with the government and the new contractors hire the former employers’ old employees to perform the contracted work.
It should be noted that regardless of whether an employer is required to provide severance pay or not, it’s important for workers who are losing their jobs to apply for employment insurance (EI) as soon as possible. EI regular benefits are available to any workers who lost their job through no fault of their own and are ready, willing and able to work but cannot find suitable employment. EI is paid out by the federal government and is taxable in most provinces and territories. The government also collects a premium from employers to fund the EI program.