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Legal Ease
Legal Ease, Lawyer
Category: Canada Business Law
Satisfied Customers: 100382
Experience:  I am a practicing lawyer and have also been an online professional for 5 years.
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I live in Alberta and own a small business. I have 2

Customer Question

I live in Alberta and own a small business. I have 2 questions that relate to HR.
1. We have had a huge down turn in business and have had to lay a few people off. We now have to lay 2 more off and we don't have the funds for a severance pkg. Do we have any options?
2. We were told our industry was exempt from overtime pay. We are IT consultants. We sell and implement software that IBM supplies and then work on customers systems. Is this true?
Submitted: 1 year ago.
Category: Canada Business Law
Expert:  Legal Ease replied 1 year ago.

Would you feel comfortable having them work there after you have told them that they are going to be laid off?

Customer: replied 1 year ago.
as a matter of fact in the past people have come back to us asking for a job again. How does a question answer my questions?
Expert:  Legal Ease replied 1 year ago.

That is not what I meant. I meant would you be comfortable giving them working notice. You do not have to provide termination pay. What you do have to provide is reasonable notice or pay in lieu of notice. Most employers want to provide pay in lieu of notice because they don't trust the employee to continue to work there once they been given their notice. But it is completely lawful for you to do that.

That is excellent solution for you if you think it will work.

Customer: replied 1 year ago.
We want to provide pay in lieu of notice. The problem is we currently don't have the ability to pay anything. We have had a really struggle waiting for AR to arrive. We actually haven't been able to pay employees for 2 pay periods. They've been understanding of the situation. However, we realize we can't hang on anymore to those we can't find contracts for and need to let them know.
Customer: replied 1 year ago.
That should have read let them go.
Expert:  Legal Ease replied 1 year ago.

They can sue you if they are not paid what they are entitled to be paid which is why I was suggesting giving them notice instead.

But if you cannot even pay them their wages then that would not help of course.

If you declare bankruptcy you will be personally liable for wages owing but not for termination pay if you are incorporated.

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