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Severance is taxed just the same as regular income from work in Canada. However, there are ways to minimize paying regular taxes on severance pay, as discussed below. How Severance Is Paid In Canada Whenever an employee settles a severance package with their employer, there are three lawful ways an employer can pay the severance: …

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Punitive damages are monetary compensation awarded to plaintiffs to deter potential wrongdoers from egregious conduct.   Punitive Damages concern the defendant’s conduct, not the plaintiff’s loss. In other words, punitive damages awards are not “compensatory”. Instead, punitive damages are meant to punish the defendant in rare cases where the defendant’s conduct has been “malicious, oppressive and high-handed” …

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What is pay in lieu? For every “without cause” termination in Canada (and Ontario), an employer must provide “notice” of the employee’s impending dismissal. “Notice” is an advanced warning of the termination. Employers have a choice to provide notice in one of two ways: (1) working notice or (2) pay in lieu. Few employers provide …

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Nepotism in the workplace Nepotism is defined as favouritism toward relatives or personal friends by those in power, who, because of their relationship rather than their abilities, receive special treatment (source). Nepotism is contrasted to “meritocracy”. Nepotism in the workplace is when someone is chosen for a job or given special treatment because of a …

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The History Of Unjust Dismissal The history of unjust dismissal is fascinating. For a hundred or so years, under the common law, non-unionized employees in Canada could be terminated without any reason if the termination was said to be “Without Cause”. The only remedy available was “Reasonable Notice” of the dismissal or “Pay in Lieu” …

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Being terminated for cause means the employee was terminated for serious incompetence or serious misconduct, and, accordingly, no notice (i.e. severance) must be given to the employee upon his or her dismissal. In addition, employees terminated for cause could be refused Employment Insurance (“EI”): Source Nevertheless, not every allegation of cause is truly cause. In …

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What Is A Wrongful Dismissal? A wrongful dismissal is simple; it is a termination in breach of the employment contract.  All employees have an employment contract even if there is no written agreement. Where there is no written contract, an implied employment contract is formed.  The most important part of an employment contract is the …

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What Benefits Can I Get On Maternity? In Canada, expecting mothers and new mothers are entitled to “maternity benefits” known as “employment insurance (“EI”) maternity benefits”. The EI benefits system is federal, meaning it is run by the Government of Canada, not the provincial governments. Nonetheless, the Federal Government’s benefits system works in lockstep with …

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There are two kinds of behavioural interview questions I will cover in this article: A job interview is a predictable social exercise, and interview questions don’t paint a whole picture, but they can provide a good sense of a candidate.  Adam Bryant, head writer for the New York Times Corner Office series says there are three job …

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