s.40Right to severance pay generally
40
Section 40Part 5 — Severance Pay

Right to severance pay generally

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Every employee whose term of continuous employment with an employer and any predecessor-employer has in aggregate exceeded one year is entitled to receive, in addition to any other payments which may be due to that employee, upon termination of that person's employment by that person's employer for any reason, other than a dismissal which is within paragraph (a), (b) or (c) of section 51(1), severance pay, being payment in money calculated in accordance with this Part.
In the case of the bankruptcy or winding up of an employer any liability for severance pay shall be paid in priority to all other debts, secured or unsecured, and shall be paid in full unless the property available is insufficient to meet them.
Severance pay shall be payable to an employee for the full period of that person's employment, including any period of employment prior to the 1st March, 1988, if that employment is terminated on or after the 1st March, 1988.

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