Here you go, Carole. From Alan McEwan:
In Ontario, notice to an employee has to be in writing. Notice given verbally is not notice from the employment standards perspective, so the “notice period” would commence from when written notice is provided. “Written” includes by email, etc.
Not sure exactly what you mean by “merit”, but if this employee is treated differently than other employees, from now to the end of the required notice, the employer risks exposing themselves to a claim for damages from wrongful dismissal. It would be much better to honour whatever is the “merit” that this person would otherwise be entitled to.
You should also know that there has been a tremendous shift recently in the Ontario law around what employees might be eligible for on termination, so that your “employee agreement” may or may not protect you against a claim for damages in excess of the 78 weeks you discuss, particularly given the employee’s length of service, age and position within the company.