The Employment Standards Act of 2000 has to be followed in case of mass termination of the employees in Glorious Florists. To start with, all employees who are to be terminated must be provided either with a written notice or a termination payment or both. If employees do not receive the notice, they must be compensated for the termination (Canada Revenue Agency, 2019). Termination pay must correspond to the salary for a regular week to which the employee has the right during the period of a written notice. Employers must also ensure coverage for any benefits that the employees would have if they continue to work during the termination notice (Canada Revenue Agency, 2019). The employees must receive termination pay either a week after they are terminated or at the next regular payment date.
Since the company plans to terminate fifty employees, special rules must be applied for mass termination. When the termination of fifty and more employees takes place, the organization has to submit a termination notice Form 1 to the Director of Employment Standards (Canada Revenue Agency, 2019). Each employee should receive a personal termination notice, and the company has to post Form 1 in the workplace. In case fifty employees are terminated, the employer has to give eight weeks’ notice (Government of Ontario, 2000). Besides, the employer can provide an employee with a temporary work for thirteen weeks after the date of termination without the possibility to change this date.
To define the total sum of termination pay, the employer has to multiply the employee’s weekly salary by the following sum: the number of completed employment years and months divided by twelve for a not completed year (Government of Ontario, 2000). Let’s calculate a termination pay for an employee with a minimum wage who has been employed in the company during three years. A minimum wage in Ontario is 14 CAD per hour (Government of Ontario, 2000). If the employee worked 40 hours per week, the weekly salary is 560 CAD. Since the employee has been working for three years, he or she must receive a three weeks’ termination payment.
In this case, termination pay will be calculated as follows: 560 CAD X 3 weeks = 1680 CAD. In addition to regular salary, the employee was also entitled to 4% vacation pay. The vacation pay on termination is calculated as follows: 4% of 1680 CAD = 67,2 CAD. The vacation payment must be added to the termination pay: 1680 CAD + 67,2 CAD = 1747,2 CAD. Besides, the employer has to guarantee coverage for any pensions or benefits applied to the employee for these three weeks.
Canada Revenue Agency. (2019). . Web.
Government of Ontario. (2000). . Web.