Details Of Legislative Payment On Termination Of Employment - Samples

Question: Discuss about the Details Of Legislative Payment On Termination Of Employment. Answer: In this letter, an attempt is made to provide details of the legislative payments that are made during the termination of the employment. The organization is contemplating termination of five employees each from the offices and boutiques in Ontario and Quebec. The severance of relationship between employer and employees raise certain obligations on the part of the employer which it has to fulfill in order to provide necessary compensation to the employees. The obligations of employers to pay certain amounts is dependent on the operation of relevant laws and legislations governing the employer-employee relationship or due to the agreement between the employers and the employees. There is both the jurisdictions of Glorious Florists, i.e. the offices and boutiques in Ontario and Quebec, have annual payroll of $12,000,000. Wages in lieu of notice: The quantum of wages in lieu of notice will be primarily dependent on the length of services of an employee. The longer the length of service the higher the amount of wages in lieu of notice will have to be paid to the employee at the time of termination of employment[1]. In case of employees of Ontario the wages in lieu of notice shall include the following: Employment income. Contribution made by the employer for CPP. In case of employees of Quebec, the wages in lieu of notice is considered as: Income from employment so premium for employer and the QPIP is applicable; the wages in lieu of retiring allowances so no employer QPP contribution is required; Vacation pay: The employer is required to make vacation payments to the employees whose services have been terminated. The vacation pay are the same in both the jurisdiction. The vacation pay should be considered employment income and employment consideration. It should be noted that the CPP and EI and QPIP are subject to the deduction[2]. Severance pay: The payroll of $12m meets the threshold of $2.5m, both the offices and boutiques in Ontario and Quebec will have to pay severance pay to the employees who have completed 5 or more years of services in these jurisdictions. It should be noted that the severance pay is not included within employment income. The letter above provide the details of payment that is required to be made at the time of termination of employment. It is hopeful that the advice is helpful and if there is any further requirement please contact. References [Internet]. Ontario.ca. 2018 [cited 6 February 2018]. Available from: https://www.ontario.ca/document/your-guide-employment-standards-act-0/termination-employment Layoff, permanent layoff, dismissal and resignation - CNESST [Internet]. Cnt.gouv.qc.ca. 2018 [cited 6 February 2018]. Available from: https://www.cnt.gouv.qc.ca/en/end-of-employment/layoff-permanent-layoff-dismissal-and-resignation/index.html