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Downsized Marketing Director Entitled to Additional Severance Pay

A small industrial design company was having financial problems so it laid off some employees and cut the remaining employees’ salaries by 10%. A few months after the layoffs, the marketing director was terminated without cause. She was given two weeks’ notice and two weeks severance pay. But she sued for additional severance pay. The court ruled that given the marketing director’s position, salary, length of employment and age, she was entitled to six months’ notice. So it ordered the company to pay her an additional five months’ severance pay of $29,640 [Ulbaldi c. Gad Shaanan Design Inc., [2007] Q.J. No. 3197, April 18, 2007].

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