Ask the ExpertReimbursable expenses
hri_Admin Staff asked 3 years ago

I would like to know paying out expenses that were not submitted while the employee was employed is considered part of termination pay. The employee is located in Ontario and has retured back after 6 months of being terminated to request for unpaid expenses. For context, we have an expense policy in place.  
 
Thank you,
Tina Sharma
647 710 5345
tinasharma@live.com

2 Answers
Glenn Demby Staff answered 3 years ago

As you know, Section 60(1)(a) of ESA bans employers from reducing an employee’s wage during the notice period (or in the payment in lieu thereof if employee doesn’t work during notice period). That would ban applying expenses owed to the employee from the notice amount, UNLESS that’s how the employee’s salary is structured. I’m going to run this past my payroll guru, Alan; but I don’t know when or if he’s working this week. Will get back to you as soon as I hear from him. Happy New Year if we don’t speak until then. Glenn

Tina Sharma replied 3 years ago

Happy New Year! Thank you very much. Looking forward to hearing his response on this.

Glenn Demby Staff answered 3 years ago

Here’s Alan’s definitive response:  No, reimbursing an employee for expenses owed would not be considered part of termination pay for any purposes, including for ROE reporting.
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Hope that answers your Q. Happy New Year. Glenn

Tina Sharma replied 3 years ago

Thank you!