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I am 54 years of age, female, and have worked for my company for 36 years in a clerical position, primarily in customer service. On August 6th, I along with approximately 40 of my colleagues received termination papers from the company due to what they advised was a restructuring of the company and our department being sold to another company. There are currently 300 employees in this company. Our company was bought out last January and it is the new company that bought us that has terminated our collective employment. I do not have a pension. I currently earn approximately $42,000.00 per year. I was advised (by letter from the president) that my employment with the company will come to an end on January 29, 2016. The company is offering me a lump sum payment of $21,136.00 which they state in the letter is equivalent to 26 weeks pay of my current salary less all required tax holdings and statutory deductions. The letter further states that should I decide to accept the offer that I have to sign the release no later than August 31st, 2015. My husband advised me not to sign any paperwork until I get legal advice. My own director of the company who also got a termination letter advised me that I should seek out legal advice as in her belief I should be entitled to somewhere in the range of a two year severance due to my 36 years of loyal employment combined with my current age factor. I am concerned with the Ministry of Labour guidelines that I have read which states a company only has to pay out to a maximum of 26 weeks severance regardless of the fact I have 36 years service, which the company is in fact doing based on the letter I have received. My questions are: 1. Is the 26 weeks of severance a guideline for employers/employees under the Employment Act or is it "written in stone?" 2. Am I entitled to a greater severance compensation. I completed your online calculation and it states I should be compensated at an 18 to 24 month package and should be offered $42,000.00 to $63,000.00 more than what the company has offered. 3. The president in his letter to me and my colleagues does not provide any narrative if I don't accept the offer and sign the release agreement by August 31st. What can legally happen to me if I don't sign this waiver as there is no alternatives stated in his letter? 4. I realize that I will likely need legal representation to fight for the increased compensation. Are my chances strong (based on past court decisions) for increased compensation, and if so what is involved, and what type of legal fees would I be looking at? Thank-you very much for providing such a site to ask questions before deciding whether to pursue legal representation. I believe that many of us in the workforce can be intimidated by employers and blindly believe that financial compensation an employer offers an employee is legitimate and fair, when often if may not be the case. Sincerely; Gail Page.
I am very glad you contacted us. You are owed much more than 26 weeks. Potentially as much as 24 months. Under no circumstances should you and your colleagues sign anything. This should be quite simple to resolve. Please give me a call at the number below to discuss this as soon as possible.
Lior Samfiru
Lior Samfiru