Call us at 1-866-575-30551451959759_phone 1451959766_mail

#1 Recommended Employment Lawyers Greater Toronto Area

Read Reviews

Canadian HR Reporter's Readers' Choice Award - Best in the Nation

More Free Legal Advice

Daniel Lublin | Apr 24, 2007

This is an excerpt from my "Ask Daniel" question and answer column through Executive Assistance Inc.

Question:
"My employment was terminated due to job restructuring. My question is what is the difference between severance package and continuance of salary. The termination letter outlined the severance arrangements As " …. you will be paid all amounts due and owing through July 15 2007 as well as any outstanding vacation pay which may be owed to you in respect of service up to today…benefits are still extended until July 15th….". What happened if on on before July 15, I am able to find another job. Will appreciate if you can help me with some advice. This is the first time in my career that I am being let go. Thank you very much."

Daniel’s Answer:
"The difference between a severance package and continuance of salary is merely semantics. Legally, you are entitled to notice of termination or pay in lieu thereof, which can take on various forms such as continuance, a lump sum payment or even working notice. It appears that your package will not be offset by any earnings through re-employment. However, employers sometimes do terminate severance payments when you obtain a similar job. I encourage you to meet with an employment lawyer to review whether or not the package you received was sufficient."