Severance Checklist

Total Page：16

File Type：pdf, Size：1020Kb

EXPECT THE BEST Severance Checklist 1. REASONS FOR TERMINATION (ii) the employer has a payroll of $2.5 Million or Do reasons for termination contravene the Human more. Rights Code, Employment Standards Act, 2000, or other statute? (c) Reasonable Notice • Determine what is reasonable notice to be given to If termination is for cause: employee having regard to such factors as the employee’s age, length of service, level of respon- (a) Do you have grounds to terminate immediately? sibility, salary and circumstances of hiring • Check with your insurance agent to determine (b) If not, have you warned the employee properly what benefits, if any, may be continued during in writing, setting out concerns, giving the employee notice period. NB. disability coverage is usually not an opportunity to improve and advised employee available to an employee after termination that his (her) job is in jeopardy if there is no • Determine whether any benefits have conversion improvement within a reasonable period of time? privileges • Consider obligations to continue other forms of If any of these issues are a concern, you should compensation such as company car, pension, car consult a lawyer before termination. allowance, commissions, bonus, low interest loans etc. 2. FACTORS TO CONSIDER WHEN • Consider method of payment? salary continuance PREPARING A SEVERANCE PACKAGE vs. lump sum • Check with Employment Insurance Commission to (a) Termination pay determine if employee is in receipt of benefits • The Employment Standards Act provides minimum • Get a Release notice or pay in lieu of notice (termination pay) • Most employee benefits must be continued during this period 3. OTHER FACTORS TO CONSIDER • Notice periods vary depending on length of service • Reference letter/exit story of employee and number of employees terminated • Outplacement counselling • Legal Fees (b) Severance pay • Confidentiality agreement • Non Competition clause Non-Solicitation clause The Employment Standards Act, 2000 provides for • Return of company property severance or pay to be paid by some employers to • Tax consequences employees with 5 years seniority or more. 4. MATERIAL TO BE GIVEN TO EMPLOYEE Severance pay is payable if: UPON TERMINATION • Final pay cheque payable no later than next regular (i) 50 or more employees are terminated in a 6 pay day month period and the terminations are caused by • Vacation Pay the permanent discontinuance of all or part of the • Record of Employment business of an employer at an establishment; or • Severance Offer • Release.

Copy Link

Recommended publications

Reductions in Force in Employment Law Second Edition
REDUCTIONS IN FORCE IN EMPLOYMENT LAW Second Edition Ethan Lipsig Mary C. Dollarhide Brit K. Seifert Paul Hastings LLP BNA Books, A Division of BNA, Arlington, VA Copyright © 2007, 2011 The Bureau of National Affairs, Inc. Library of Congress Cataloging-in-Publication Data Lipsig, Ethan. Reductions in force in employment law / Ethan Lipsig, Mary C. Dollarhide, Brit K. Seifert. -- 2nd ed. p. cm. Includes index. ISBN 978-1-57018-718-6 1. Layoff systems--Law and legislation--United States. 2. Employees--Dismissal of-- Law and legislation--United States. 3. Downsizing of organizations--United States. 4. Notice (Law)--United States. I. Dollarhide, Mary C. II. Seifert, Brit K., 1968- III. Title. KF3471.L577 2011 344.7301’2596--dc22 2011012865 All rights reserved. No copyright claimed in U.S. government materials. Photocopying any portion of this publication is strictly prohibited unless express written authorization is first obtained from BNA Books, 1801 South Bell St., Arlington, VA 22202, bnabooks.com. Authorization to photocopy items for internal or personal use, or the internal or personal use of specific clients, is granted by BNA Books for libraries and other users registered with the Copyright Clearance Center (CCC) Transactional Reporting Service, provided that $1.00 per page is paid directly to CCC, 222 Rosewood Dr., Danvers, MA 01923, copyright.com, Telephone: 978-750-8400; Fax: 978-646-8600. Published by BNA Books 1801 South Bell St., Arlington, VA 22202 bnabooks.com ISBN: 1-57018-718-6 Printed in the United States of America CHAPTER 1 GETTING STARTED I. Overview ....................................................................................................1-1 II. Establishing Objectives and Constraints ....................................................1-5 III.
[Show full text]
Executive-Severance-Arrangements
About Meridian Compensation Partners, LLC Meridian Compensation Partners, LLC is one of the largest independent executive compensation and corporate governance consulting firms in North America. Meridian consultants advise Boards of Directors and Senior Management on the full range of executive compensation issues that confront them. Whether the subject is compensation philosophy, pay for performance, incentive plan designs, retention, shareholder initiatives, mergers and acquisitions or Board governance, we have the resources, experience, expertise and judgment to help. We guide Compensation Committees as they make difficult but informed decisions on executive pay. Meridian Compensation Partners, LLC 100 N. Field Drive Suite 300 Lake Forest, Illinois 60045 Phone: (847) 235-3600 www.meridiancp.com © 2012 Meridian Compensation Partners, LLC. The material in this publication may not be reproduced or distributed in whole or in part without the written consent of Meridian Compensation Partners, LLC. The Standard & Poor’s 500® index is a registered trademark of Standard & Poor’s Financial Services, LLC, a wholly owned subsidiary of The McGraw-Hill Companies. Questions or comments regarding this publication should be directed to Donald Kalfen at [email protected] or 847-235-3605. PAGE 1 2012 GENERAL SEVERANCE ARRANGEMENTS DECEMBER 2012 Contents ■ Report Scope and Study Group Characteristics 3 ■ Overview of Executive Severance Arrangements 5 ■ Key Findings 6 ■ Prevalence of Payment Triggers and Related Definitions 7 ■ Cash Severance Benefits
[Show full text]
2:10-Cv-12979-SFC-RSW Doc # 33 Filed 03/26/12 Pg 1 of 14 Pg ID 908
2:10-cv-12979-SFC-RSW Doc # 33 Filed 03/26/12 Pg 1 of 14 Pg ID 908 UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION Octavio Penedo, Plaintiff, v. Case No. 10-12979 Valero Inc., Honorable Sean F. Cox Defendant. _________________________________/ ORDER ADOPTING REPORT AND RECOMMENDATION Plaintiff Octavio Penedo (“Plaintiff”) filed this ERISA action against his former employer, Defendant Valeo Inc. (“Valeo”), alleging that Valeo wrongfully denied Plaintiff severance benefits under Valeo’s Employee Benefit Plan. Thereafter, Plaintiff filed a motion for summary judgment to reverse the Plan Administrator’s decision and Valeo filed a motion to affirm the Plan Administrator’s decision. Those motions were referred to Magistrate Judge Steven Whalen, pursuant to 28 U.S.C. § 636, for issuance of a report and recommendation. On August 31, 2011, Magistrate Judge Whalen issued his report and recommendation (“R&R”) (D.E. No. 29), wherein he recommends that the Court grant Plaintiff’s motion for summary judgment and deny Valeo’s motion for summary judgment. On September 16, 2011, Valeo filed written objections to the August 31, 2011 R&R. (D.E. No. 30). For the reasons set forth below, the Court shall ADOPT the report and recommendation in its entirety. 1 2:10-cv-12979-SFC-RSW Doc # 33 Filed 03/26/12 Pg 2 of 14 Pg ID 909 BACKGROUND Plaintiff was employed as the Tax Director of Mexican affairs for Valeo at their Troy, Michigan office. Valeo provided Plaintiff a benefits package, which included severance benefits, pursuant to Valeo’s Employee Benefit Plan (the “Plan”).
[Show full text]
Annual Pay Policy Statement 2018/2019
Summons Item 8. Stockport Metropolitan Borough Council Annual Pay Policy Statement 2018/19 1. Introduction 1.1 This Pay Policy Statement (the ‘statement’) sets out the Council’s approach to pay policy in accordance with the requirements of Section 38 of the Localism Act 2011. The statement also has due regard for the associated statutory guidance including supplementary guidance issued in February 2013 and the Local Government Transparency code 2014. For the first time the statement also incorporates the Councils Gender Pay Gap information as the Council is now required to publish this on an annual basis under the GPG reporting requirements. 1.2 The purpose of the statement is to provide transparency with regard to the Council’s approach to setting the pay of its employees (excluding teaching staff working in local authority schools) by confirming the methods by which salaries of all employees are determined; the detail and level of remuneration of its most senior staff i.e. ‘chief officers’, as defined by the relevant legislation; the responsibility of the Appointments Committee to ensure the provisions set out in this statement relating to the Chief Executive, Deputy Chief Executive, Corporate Directors and Service Directors are applied consistently throughout the Council and recommend any amendments to the Council. 1.3 Once approved by the full Council, this policy statement will come into effect from the following April and will be subject to review on a minimum of an annual basis, the policy for the next financial year being approved by 31 March each year. 2. Other legislation relevant to pay and remuneration 2.1 In determining the pay and remuneration of all of its employees, the Council will comply with all relevant employment legislation.
[Show full text]
Severance Pay: What It Is and Why You Should Negotiate a Package Before Accepting a Job Acosta, Deborah
Severance Pay: What It Is and Why You Should Negotiate a Package Before Accepting a Job Acosta, Deborah . Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Dec 2020. ProQuest document link FULL TEXT In brief * Employers aren't legally required to pay severance in most cases. * Be aware of your company's severance package and try to negotiate it before accepting a job offer. * The success of your negotiation depends on how much leverage you have. The best time to negotiate severance pay is when you and your employer don't think you will need it: when you have been offered the job . "It's a little bit like a prenuptial agreement," says Wayne Outten, the founding partner and chair of Outten and Golden LLP, an employee-side law firm. "It's not very romantic, but you want one just in case things don't work out." Employees are less likely to stay with one company for life than they used to be and it is important to plan for the eventual moment when you and your employer part ways. What is severance pay and how does it work? Severance pay is a sum of money or other benefits that an employer offers a worker who leaves the company under certain circumstances. You might receive severance pay if you are being laid off, your job is eliminated , or if you and your employer mutually agree to part ways. In most cases, severance pay isn't required by law, but some companies have established policies for offering it.
[Show full text]
Severance Packages
A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Postel-Vinay, Fabien; Turon, Hélène Working Paper Severance packages IZA Discussion Papers, No. 6023 Provided in Cooperation with: IZA – Institute of Labor Economics Suggested Citation: Postel-Vinay, Fabien; Turon, Hélène (2011) : Severance packages, IZA Discussion Papers, No. 6023, Institute for the Study of Labor (IZA), Bonn, http://nbn-resolving.de/urn:nbn:de:101:1-201110263632 This Version is available at: http://hdl.handle.net/10419/58674 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu IZA DP No. 6023 Severance Packages Fabien Postel-Vinay Hélène Turon October 2011 DISCUSSION PAPER SERIES Forschungsinstitut zur Zukunft der Arbeit Institute for the Study of Labor Severance Packages Fabien Postel-Vinay University of Bristol, Sciences Po and IZA Hélène Turon University of Bristol and IZA Discussion Paper No.
[Show full text]
PALSSU Agreement
DocuSign Envelope ID: DC47C24E-C072-410E-A17A-882E5F58436FD27FCF74-189C-431C-AC45-D37DBE628164 LETTER OF AGREEMENT BETWEEN CITY OF SANTA MONICA AND PUBLIC ATTORNEYS LEGAL SUPPORT STAFF UNION Representatives of the City of Santa Monica (City) and the Public Attorneys Legal Support Staff Union (PALSSU) have reached an understanding as to the impacts of the City’s restructuring and budget reduction process approved by City Council on May 5, 2020, in response to the COVID-19 public health crisis, which has resulted in a reduction in force affecting employees represented by PALSSU. This Letter of Agreement shall operate to amend the current Memorandum of Understanding between the parties (Contract No. 10744 (CCS)) that presently is in full force and effect, as follows: 1. Lay-off Severance Package In addition to the accrued leave cash outs to which employees separated from City employment are legally or contractually entitled as of the date of their separation, the City will provide a severance package to each PALSSU employee being separated from the City due to layoff because the employee’s position has been eliminated as a result of the City reorganization described above. The severance package will include: a. A lump sum payment of $16,000; provided, however, that if the City agrees to a severance payment for laid off employees of more than an average of $16,000 per separated employee (or agrees to provide any such laid off employee with an additional item of value that causes his/her severance package to exceed an average value of $16,000) with any of the following bargaining units: ATA, IBT, FEMA, Local 1109, MEA, MTA, PAU, POA, SMART-TD, or STA, then the City shall provide such PALSSU employees with the same severance amount and/or item of value as agreed to with the other bargaining units; and 2.
[Show full text]
Sample of Furlough Letter (Covid-19)
How to Use this Document: On the first page, you’ll see text set [within brackets]. Brackets indicate text that you can edit. You can make changes to the text on page two and then delete page one. SAMPLE OF FURLOUGH LETTER (COVID-19) [date] [employee name and address] Re: Notice of Furlough Dear [employee name], We regret to inform you that because of the current level of work available as a result of COVID-19, we have opted to place you on furlough (temporary layoff) during the next [number] weeks. You are not authorized to work during the furlough without advance written authorization from [manager, supervisor, or other]. The furlough will begin on [date]. We are hopeful that we will be able to restore you to your prior position with our company on or around [date]. However, it is important to note that we reserve the right to change this date based on our business needs. During this period: 1. You will retain your seniority with the company. 2. [Remove language if not applicable] The Company will pay for both your portion and the company’s regular contribution of your health insurance. Upon your return, you may be required to reimburse the company for the catch-up contributions. 3. You may be eligible for unemployment benefits during this time. We recommend contacting the [state] unemployment department for further information and to apply. 4. [Remove language if not applicable] If you have available vacation time/PTO that you would like to use during this time, you are welcome to use such time, but are not required to do so.
[Show full text]
CMAA Severance Checklist
CMAA Severance Checklist Introduction: The following information is designed to be a reference document for your severance package negotiations. It includes general information regarding statistics and figures and other considerations when constructing your severance package. Background/Fact & Figures: CMAA studies show that many of today’s general managers/COOs/CEOs have an employment contract. One of the benefits to having a formal employment agreement or contract is to clearly define the terms of employment and, as important, the terms of separation . • 74 percent of CMAA members that have the title of CEO/COO have an employment contract and more than 60 percent of those are multi-year contracts. • The average length of a multi-year contract is three years. • 44 percent of CMAA members with the title of general manager have an employment contract . • 27 percent of CMAA members with the title of manager have an employment contract . • 35 percent of CMAA members with the title of clubhouse manager have an employment contract. Ideally , a severance package is addressed during your pre-employment contract negotiations; however , often times managers find themselves having to negotiate these terms after being informed they are to be terminated. This guide will help you identify the items to include when constructing your severance package . It is strongly recommended that you include language in an employment agreement on the terms of separation prior to taking employment or accept - ing a promotion, but if you are unable to do that, consider proposing such language during an annual performance review. In the cases where there is not an employment contract and em - ployment is abruptly ended, this document can serve as a checklist of items to consider when coming to terms with your employer.
[Show full text]
Employment Downsizing and Its Alternatives
SHRM Foundation’s Effective Practice Guidelines Series Employment Downsizing and its Alternatives STRATEGIES FOR LONG-TERM SUCCESS Sponsored by Right Management SHRM FOUNDAtion’S EFFECTIVE PraCTICE GUIDELINES SERIES Employment Downsizing and its Alternatives STRATEGIES FOR LONG-TERM SUCCESS Wayne F. Cascio Sponsored by Right Management Employment Downsizing and its Alternatives This publication is designed to provide accurate and authoritative information regarding the subject matter covered. Neither the publisher nor the author is engaged in rendering legal or other professional service. If legal advice or other expert assistance is required, the services of a competent, licensed professional should be sought. Any federal and state laws discussed in this book are subject to frequent revision and interpretation by amendments or judicial revisions that may significantly affect employer or employee rights and obligations. Readers are encouraged to seek legal counsel regarding specific policies and practices in their organizations. This book is published by the SHRM Foundation, an affiliate of the Society for Human Resource Management (SHRM©). The interpretations, conclusions and recommendations in this book are those of the author and do not necessarily represent those of the SHRM Foundation. ©2009 SHRM Foundation. All rights reserved. Printed in the United States of America. This publication may not be reproduced, stored in a retrieval system or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the SHRM Foundation, 1800 Duke Street, Alexandria, VA 22314. The SHRM Foundation is the 501(c)3 nonprofit affiliate of the Society for Human Resource Management (SHRM).
[Show full text]
Estimated Year Income Part 1 of 2 2021 – 2022
Y school of medicine Financial Aid O∞ce Estimated Year Income part 1 of 2 2021 – 2022 Student / Parent information Student’s Name: __________________________________________________________ MD pa Yale ID Number: _______________________________________ Date of Birth: ___________________ Student’s Permanent Address: ____________________________________________________________ Student’s Email: ________________________________________ Phone: ________________________ Parent’s Email: _________________________________________ Phone: ________________________ 2021 Income Update Who is experiencing the loss of wages? ________________________________________ Unemployment start date: __________________ WAGES EXPECTED IN 2021 2021 ESTIMATED Wages earned by Parent 1/Step Parent 1 (January 1, 2021 to present) $ Wages earned by Parent 2/Step Parent 2 (January 1, 2021 to present) $ Total Expected Wages that will be earned by Mother/Stepmother in calendar year 2021 $ (January 1 through December 31) Total Expected Wages that will be earned by Father/Stepfather in calendar year 2021 $ (January 1 through December 31) OTHER INCOME EXPECTED IN 2021 2021 ESTIMATED Severance Pay $ Unused Sick Pay $ Unused Vacation Pay $ Unemployment Benefits $ Worker’s Compensation $ Interest/Dividend Income $ Child Support $ Social Security Benefits $ Payments to Tax-Deferred plans $ TANF/Welfare Benefits $ Other (please explain) $ Total $ 367 cedar street • new haven ct 06510 • t 203.785.2645 • f 203.436.9762 • [email protected] Y school of medicine Financial Aid O∞ce Estimated
[Show full text]
Preparing a Severance/Separation Agreement
Resource Guide Preparing a Severance/Separation Agreement The following are guidelines to consider when preparing a severance/separation agreement. Each agreement should be narrowly tailored to reflect the individual circumstances of the employment separation. Relying on “form” agreements increases the likelihood that an agreement could be found to be unenforceable if challenged in court. It is recommended that all severance/separation agreements be drafted by or with your employment attorney; however, below are issues to be aware of when preparing a severance/separation agreement with your attorney. When Should I Offer Severance? • Does the company have a formal severance pay policy/plan? • Do you routinely offer severance pay or only in certain circumstances or to employees at a certain level? • Do you have a concern that the employee may file a discrimination or other type of employment claim? Does it Matter When the Employee Signs the Agreement? • The severance agreement should be signed only after the employee’s separation date. • If the agreement is signed prior to the employee’s last day of work, the employee has not waived claims that may occur after signing but before the employee’s actual termination date. What is “Consideration?” • The agreement must offer benefits to the employee in exchange for his/her release of claims against the company – these benefits are the employee’s “consideration” for signing the agreement. • The agreement must offer benefits (consideration) to which the employee is not already entitled upon termination. • For example, if the company’s current policy is to pay out earned, unused vacation upon termination, this vacation pay is already owed to the employee and, therefore, cannot be offered as “consideration” to sign the agreement.
[Show full text]