Section 42Part 5 — Severance Pay
Severance pay, when payable: temporary termination
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Subject to subsections (2), (3) and (4), simultaneously upon the termination of the employment of any employee entitled to severance pay, the employer shall pay to that employee severance pay calculated in accordance with this Part.
If the termination is stated to be temporary, no severance pay need be paid to the employee at the time of such temporary termination except —
where the date of recall, if one is given at the time of termination, is thirty days or more in the future, severance pay shall be payable on the date of termination;
if no date of recall is given at the time of termination, severance pay shall be payable thirty days from the termination if the employee shall not then have been recalled; in which case, interest at ten per cent per annum on the amount of severance pay due shall be payable for the interval between the original termination date and the date of actual payment.
Subsection (2) shall apply to employees in agriculture and construction with the words "six months" substituted for the words "thirty days" in both places where they occur in that subsection.
Where payment of severance pay has been made, with interest where due under paragraph (b) of subsection (2), and the employee is subsequently recalled to that person's former or substantially equivalent employment or is again hired by the same employer, that person shall be considered to be newly hired and that person's term of employment, for subsequent severance pay purposes, shall be considered to have commenced on the date of that person's recall or rehire.
Referenced By
- Section 44 — Liability of predecessor and successor-employers
section 42 - standards