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After the Axe Has Fallen

The worst part of the termination process is wielding the axe. The second worst part is settling accounts with the employee after the axe has fallen. Calculating back pay and termination payments is half the battle; the other challenge is to ensure that all payments are properly processed and transmitted to the employee. Unfortunately, that’s not as simple as it sounds.

Step 1: Gather the Necessary Termination Information 

Employers are required to notify employees of termination in writing (or provide equivalent wages in lieu of notice.) Even if you don’t prepare the written notice, you must get a copy of it and ensure that payroll does likewise. “The termination notice often includes the basics about the termination, including termination date and, if you’re lucky, all termination and other payments due the employee,” explains a leading Ontario payroll consultant.

Unfortunately, termination notices typically leave out the key information payroll needs to calculate and process paym...

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