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Do Foreign Employees Count Toward ESA Minimum Severance Pay?

Situation

A manufacturing company stops operations at its Guelph facility and closes the facility for good, laying off all 40 employees who worked there. Ontario’s group termination laws require employers to pay severance to certain employees if the employer terminates 50 or more workers within a six month period or if the employer’s monthly payroll is at least $2.5 million. The facility’s payroll is less than $2.5 million, but the manufacturing company has other facilities in the United States. The payroll for all of the company’s facilities totals about $10 million.

Question

Does the U.S. employees’ payroll count when determining the amount of the employer’s payroll for severance calculations?

a) Yes. The employer’s payroll is the combined amount that the company must pay to all of its employees, regardless of where they are located.

b) No. Only Ontario employees’ payroll is covered by the Ontario group termination laws.

c) No, but if the U.S. employees were located in Canada, ...

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