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Debra
Debra, Lawyer
Category: Canada Law
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I am looking guidance on severance, and my employment

Customer Question

I am looking for some guidance on severance, i am British and my employment contract is with a Cyprus entity but governed by Alberta law.
Submitted: 9 months ago.
Category: Canada Law
Customer: replied 9 months ago.
My company is selling on of its entities, i will likely be hired by the purchasers. Today i received my letter or termination, but I am being informed that I will not receive severance as i will likely be offered a job. The agreement clearly states:In the event that this Agreement or your employment is terminated by the Company, for any reason other than cause, the Company shall provide you with either two (2) months prior notice of such termination or a severance payment equivalent to two (2) months of your Base Salary as described above, or a combination of notice and Base Salary equivalent two (2) months total, less applicable statutory deductions.
Termination with cause would include, but would not be limited to, illegal or dishonest acts, unethical business practices, existence of other business interests of the Employee that conflict with the business interests of the Company, undertaking activities inconsistent with or in conflict with the direction provided by the management of the Company, failure to report to management material issues relating to the activities of the Company and other such activities.In my mind, since they are terminating this agreement I should receive severance?Thanks,Gavin
Expert:  Debra replied 9 months ago.

How long did you work for them for?

Do you want to work for the new company?

Customer: replied 9 months ago.
A little over three years. Yes I am waiting on an offer, with the contract wording is that relevant? They are terminating my contract.
Expert:  Debra replied 9 months ago.

If you want to insist on termination pay they must pay it. The reason why you may not want to do that is that if you start working for the other company this would be considered to be a continuation of employment situation and if you were dismissed from the other company the three years appointment with this first employer would count.

So you have two choices. You can demand termination pay and start over with the new employer or you can simply move over to the new employer and get credit for your three years there

Do you see what I mean?

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