Section 47Part 6 — SEVERANCE PAY
Liability of predecessor and successor-employer
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Where an employee accepts employment with a successor-employer under section 46 (2) then, in the event of a subsequent termination by that successor-employer, the successor-employer shall be responsible for the employee's severance pay, which amount shall be based on his full tenure of employment with the successor-employer and all predecessor-employers.
Where severance pay relating to an employee who has been temporarily laid off becomes due before he resumes duty and in the meantime the business of the employer is transferred, the predecessor employer and the successor-employer shall be jointly and severally liable for payment of the severance pay plus interest at the rate stated in section 45.
Cross References
- Section 46 of Unknown
reference to section 46(2) regarding successor-employer acceptance
- Section 45 of Unknown
reference to interest rate in section 45