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As in most provinces, Sask. does not provide for STATUTORY severance pay. In other words, the Sask. Employment Act provides for employment notice but NOT severance. However, you may still be bound to pay severance if it’s required in the employment contract or the collective agreement (if the employee is union). In that case, you’d have to look at the actual contract language to make a determination about whether severance is due in this case.
In addition, many employers agree voluntarily to provide severance (in addition to the required termination notice) as part of the termination package.
I’ve also asked our payroll expert, Alan McEwen, to weigh in. He knows far more about this than me. I’ll let you know as soon as I hear back.
Sorry about the delay. I usually answer my “mail” once a week and this Q came in just after I wrapped up. In the future, you can always contact me directly at glennd@bongarde.com if you need immediate help. Glenn