Glorious Florists is a floral supply company with offices and boutiques in Ontar

Question

Glorious Florists is a floral supply company with offices and boutiques in Ontario and Québec. The organization started operations in 1978 and currently has an approximate annual payroll of $12,000,000 in each jurisdiction.

The organization is considering terminating the employment of five employees in each jurisdiction. To assist with forecasting the budget for the balance of the year, Nancy Wilson, the Director of Finance has asked you, as the Payroll Supervisor, to provide her with the details on all legislated payments on termination of employment required for each jurisdiction. In addition to the required payments on termination, include any employer costs related to the employees’ statutory deductions.

Explanation / Answer

In Ontario when there is no cause for termination then the employer is entitled to given notice of termination and severance pay. Notice requirements include working notice, termination pay in lieu of notice or a combination of both. During the notice period the employer must maintain group health and welfare benefits whether or not the employer chooses to provide working notice or pay in lieu of notice. Severance pay is given to employees with five or more years of service where the employees have their employment terminated by an employer with an annual payroll of $2.5 million or more. Severance Pay is part of retiring allowance, and there is no additional expense for the employer as there are no CPP or EI requirements, because it is a retiring allowance. It is not required in the jurisdiction of Quebec.

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