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Created by Laura McFarland
January 2014

Termination
Human Resources Management
1

Insights
Topics












2

Created by Laura McFarland
January 2014

Types of Termination
Types of Termination – continues
Termination Policy overview
Why do a Termination
Termination with Cause
Termination without Cause
Termination without Cause –continues
When to do a Termination
Releasing Job Records
3

Created by Laura McFarland
January 2014

Types of Terminations:
4

Created by Laura McFarland
January 2014

Types of Terminations:
Examples:
Involuntary Termination

Voluntary Termination

Fired

Quit

Laid Off

Retired

Job Elimination
5

Created by Laura McFarland
January 2014

Termination Policy Overview
 Termination

Policy Overview
 Federal Law requires employers to provide a
final paycheck, including all pay due, within 6
days for:
 Employees who quit without notice period
 Employees who resign without notice period
 Federal Law requires employers to provide a
final paycheck, including all pay due, within 48
days for:
 Employees who involuntary are terminated
 Employees who are laid off due to business
hardship
6

Created by Laura McFarland
January 2014

Why proper Termination helps :








Timely administration of a termination ensures:
Compliance with federal and provincial laws
which requires furnishing a final check
Correct reporting of headcount on government
filings
Accurate records of employee standard work
hours , which is especially important for paternity
leave employees who may have work hour
restrictions
Prevention of overpayments to employees who
are no longer working for CTR Ventures Ltd.
Timely provision of benefits enrollment information
to employees moving from a contingent position
to a benefits-eligible position
7

Created by Laura McFarland
January 2014

Termination With Cause










Employer can terminate employment for
cause, where employee’s conduct is
inconsistent with the continuation of the
employment relationship.
Can only happen when the employee is guilty
of repeated and very serious misconduct.
Employer has an obligation to take other
lesser forms of discipline before resorting to
termination.
One incident of misconduct is almost never
enough.
If employer establishes cause, no requirement
to pay severance.
In reality, very difficult to establish cause, and
employer may be liable for damages for bad
faith.
8

Created by Laura McFarland
January 2014

Termination Without Cause











Can happen at any time, for any reason
Performance is irrelevant
Seniority is irrelevant
No termination as a result of a discriminatory
ground (for example, no termination without
cause because employee was absent due to
an illness)
Employer must provide reasonable notice or
pay in lieu thereof
Starting point: employment contract
No contract: probably good news for
employee
Must determine what reasonable notice is for
each employee
9

Created by Laura McFarland
January 2014

Termination Without Cause (contd.)








Notice is based on employee's age, length of
employment, nature of position
Was employee induced to leave secure
employment? Notice goes up.
Employer may decide to give working notice
If no working notice, must be put in the same
financial position as if given working notice.
Payment can be made as lump sum or as salary
continuation.
Package must include everything: salary, bonus,
commissions, benefits, stock options, vacation pay.
Important: employee has duty to mitigate
10

Created by Laura McFarland
January 2014

When to Do a Termination
 The

termination process is used for:
 All employees separating from on-going
or fixed-term employment
 Intern or Practicum students hourly
workers who have ended employment
 Layoffs
 Retirements
 Employees moving from one Employment
to alternative Employment(final check
needed for vacation payout)
11

Created by Laura McFarland
January 2014

Releasing the Job Record
 If

you are unable to determine whom to
contact in the previous department to
get a job record released, Include:
 Name of Employee,
 Effective Date of Hire (release of job
record must be on or prior to the Effective
Date of the Hire)
12

Created by Laura McFarland
January 2014

Thank you for participating

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Termination process and procedures - Power Point

  • 1. Created by Laura McFarland January 2014 Termination Human Resources Management 1 Insights
  • 2. Topics          2 Created by Laura McFarland January 2014 Types of Termination Types of Termination – continues Termination Policy overview Why do a Termination Termination with Cause Termination without Cause Termination without Cause –continues When to do a Termination Releasing Job Records
  • 3. 3 Created by Laura McFarland January 2014 Types of Terminations:
  • 4. 4 Created by Laura McFarland January 2014 Types of Terminations: Examples: Involuntary Termination Voluntary Termination Fired Quit Laid Off Retired Job Elimination
  • 5. 5 Created by Laura McFarland January 2014 Termination Policy Overview  Termination Policy Overview  Federal Law requires employers to provide a final paycheck, including all pay due, within 6 days for:  Employees who quit without notice period  Employees who resign without notice period  Federal Law requires employers to provide a final paycheck, including all pay due, within 48 days for:  Employees who involuntary are terminated  Employees who are laid off due to business hardship
  • 6. 6 Created by Laura McFarland January 2014 Why proper Termination helps :       Timely administration of a termination ensures: Compliance with federal and provincial laws which requires furnishing a final check Correct reporting of headcount on government filings Accurate records of employee standard work hours , which is especially important for paternity leave employees who may have work hour restrictions Prevention of overpayments to employees who are no longer working for CTR Ventures Ltd. Timely provision of benefits enrollment information to employees moving from a contingent position to a benefits-eligible position
  • 7. 7 Created by Laura McFarland January 2014 Termination With Cause       Employer can terminate employment for cause, where employee’s conduct is inconsistent with the continuation of the employment relationship. Can only happen when the employee is guilty of repeated and very serious misconduct. Employer has an obligation to take other lesser forms of discipline before resorting to termination. One incident of misconduct is almost never enough. If employer establishes cause, no requirement to pay severance. In reality, very difficult to establish cause, and employer may be liable for damages for bad faith.
  • 8. 8 Created by Laura McFarland January 2014 Termination Without Cause         Can happen at any time, for any reason Performance is irrelevant Seniority is irrelevant No termination as a result of a discriminatory ground (for example, no termination without cause because employee was absent due to an illness) Employer must provide reasonable notice or pay in lieu thereof Starting point: employment contract No contract: probably good news for employee Must determine what reasonable notice is for each employee
  • 9. 9 Created by Laura McFarland January 2014 Termination Without Cause (contd.)        Notice is based on employee's age, length of employment, nature of position Was employee induced to leave secure employment? Notice goes up. Employer may decide to give working notice If no working notice, must be put in the same financial position as if given working notice. Payment can be made as lump sum or as salary continuation. Package must include everything: salary, bonus, commissions, benefits, stock options, vacation pay. Important: employee has duty to mitigate
  • 10. 10 Created by Laura McFarland January 2014 When to Do a Termination  The termination process is used for:  All employees separating from on-going or fixed-term employment  Intern or Practicum students hourly workers who have ended employment  Layoffs  Retirements  Employees moving from one Employment to alternative Employment(final check needed for vacation payout)
  • 11. 11 Created by Laura McFarland January 2014 Releasing the Job Record  If you are unable to determine whom to contact in the previous department to get a job record released, Include:  Name of Employee,  Effective Date of Hire (release of job record must be on or prior to the Effective Date of the Hire)
  • 12. 12 Created by Laura McFarland January 2014 Thank you for participating