There are numerous ways to pay severance to an employee. You can pay a lump sum payment less statutory/source deductions to a terminated employee. The problem with this option for many small businesses is that lump sum payments often affect cashflow. If an employee has been with you 10 years and you pay him/her 6 or 7 months in termination pay, this obviously could eat away at your profit very quickly if you are not a large company. An alternative to paying lump sum is salary continuance. I often recommend to this to small and medium sized companies for several
TO FINISH READING THIS ARTICLE PLEASE CLICK HERE →When consulted by employees on wrongful dismissal matters I often get asked about how commissions tie into calculating damages for wrongful dismissal. In the smaller but interesting case Robert Katz v. Canada Mortgage & Lending Corp. Judge Mulligan was not only asked the same thing, but he was also asked to rule on the classic independent contractor/employee relationship. The case was a simplified procedure case (meaning in law that is your damages are under 50K then you must sue under simplified procedure. The plaintiff, Robert Katz (the “plaintiff”) claims damages for wrongful dismissal as well as other monies owing to
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