If a division (located in Calgary, AB) of a company (located in Ottawa, ON) closes it’s doors – what monies would be due to EEs?
Would those funds be restricted to statutory pay in lieu or working notice? or is it a generally-accepted practice for ERs to provide common-law severance as well (which is generally the case in layoff situations when a business is not closing, in an attempt to avoid future litigation, for those companies who prefer to stay out of court).
This comes from Alan McEwen, our payroll guru.
First, in the situation described, the rules that apply are those for Alberta, unless the company is federally regulated.
Yes, the employer would have to pay any wages owing, including accumulated vacation pay, banked time, etc. as well as either providing sufficient notice or wages in lieu of notice.
Yes, it would also be a common practice, to pay above the required minimum employment standards amounts for these, in order to avoid the possibility of being taken to court.