Section 45Part 6 — SEVERANCE PAY
Severance pay: when payable
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Except as otherwise provided in this section, severance pay shall be paid simultaneously with the termination of employment.
Where upon termination a date of recall is given and that date is more than thirty days from the date of termination, severance pay shall be paid on the date of termination.
Where no date of recall is given —
and by the end of the thirtieth day of lay off the employee has not been recalled; or
has been recalled but the effective date of resumption of duty is more than thirty days from the date of termination,
severance pay shall be paid on the thirty-first day of lay off, in which case interest shall be paid at the rate of ten per cent per year calculated from what would have been the original due date of severance pay under subsection (1).
Where an employee resumes duty after the thirty days referred to in subsection (3) —
and severance pay was paid within the period referred to in subsection (3), the employee shall, except as set out in subsection (5), for all purposes, including future severance pay, be considered to be a new employee;
and severance pay and interest have not fully been paid the employee shall, except as set out in subsection (5), still be considered a new employee but remain entitled to his dues with interest at the rate stated in subsection (3).
Where an employee under subsection (4) resumes duty with the same employer within one year of his termination date, all of his periods of previous employment with that employer shall be combined when determining his benefits that are accrued based on longevity, such as vacation leave and some paternity leave benefits.
This section applies to employees in agriculture and construction with the words "ninety days" substituted for the words "thirty days" and the words "ninety-first day" substituted for the words "thirty-first day".
Cross References
- Section 78 of Unknown
reference to Director dealing with disputes