Quitting your job?

[jimbo2006]

Here's a question for any HR experts on here: what happens when someone quits their job, gives appropriate notice, etc. Does the company have to pay any accrued vacation time to the employee? Is it required by law?

 

[Sonny]

...yes, they do have to pay you holiday pay because you've earned it, but if you quit on short notice they may not have to pay you severance. Yes holiday pay is required by law, you're entitled to it or time off in lieu of.

There is no such thing as severance if you quit; severance or pay-in-lieu-of-notice only arises if you are let go without cause.

If you are giving a notice period, my advice is to carry out your work as best as you can until the end of your final day. Maintain a pleasant civil relationship with your employer if you can. Acts of "burning bridges" may find their way back into your life in unpleasant ways, such as when you find a perfect job opportunity and your past comes to haunt you.

You are entitled to your unpaid accrued vacation pay as it is earned everyday that you work. It would be paid with your final paycheque, but reduced if you were to take time off between the date of your notice and the final day you work.

 

[sirlickheralot]

Here's a question for any HR experts on here: what happens when someone quits their job, gives appropriate notice, etc. Does the company have to pay any accrued vacation time to the employee? Is it required by law?

Yes it is required by law, since vacation pay is calculated as a percentage of wages earned by the employee (minimum 4% I think), the employee has earned their vacation pay. So if the employee has earned $30,000 at the point they quit they're entitled to at least $1200 in vacation pay.

 

[Horse99]

that's probably for those upper level bureaucrats that have those cushy jobs....if you quit, and you will NOT be getting any severance..

 

[Trevor2136]

In BC severence can be required in certain circumstances even though you have given notice.

For example, if you have been working at a position for awhile and give a resonable period of notice (say 2 weeks), then you have given appropriate notice to your employer that you will be leaving. Should your employer then decide that it is in the best interests of the company for you not to continue working then the employer can elect to pay out your working notice which constitutes severence.

In other words, if you give 2 weeks notice and your boss is pissed off and says just leave right now the company has to pay you for 2 weeks of work.

I wish I had known that when I was younger as it would have screwed a few bosses over.

Vacation pay is an earned right, your employer cannot require you to take your vacation during your notice period instead of paying you out. However vacation pay is only an earned right to the point at which it is statutorily required. For example a company is only required to provide 2 weeks vacation after your first year of service. However, many will give employees 3 weeks. If at the end of the year you have only taken 2 weeks of time the employer is not required by law to pay you out or to roll forward the vacation, although most companies will as a sign of good faith.

I used to work for a company that provided 3 weeks in the first year; if you hadn't taken any vacation during the year they would only roll forward or pay out 2 weeks. We checked and this is correct, and it was an incentive to make sure you took at least one week off.

Iwannarocku's post refers to severence, which arise if your employer ends the employment not if you choose to end the relationship. From a legalistic perspective, what sense would it make to pay me a bonus for leaving the company?

Haveing said that, I have negotiated contracts where my severence clause would be enacted even if I resigned, but as Horse syas that was for an upper level position. The higher up you are the closer you are to the door.

Trev.

 

[sonoman]

Re: Severance Pay in Ontario

Severance pay in Ontario is based upon one week’s pay for each year of service to a maximum of 26 weeks. The legislation provides credit for partial years of employment.

In Ontario, severance pay is in addition to notice of termination or termination pay. It must be paid to employees with five or more years of service.

that's probably for those upper level bureaucrats that have those cushy jobs....if you quit, and you will NOT be getting any severance..

Nope... applies to all positions in Ontario where you have worked full-time for five years or more.

 

[Sonny]

In other words, if you give 2 weeks notice and your boss is pissed off and says just leave right now the company has to pay you for 2 weeks of work.

This works out in the end to be a case of your boss terminating your employment and having to pay you in lieu of notice.

Unless you have a contract that contains exit payments even in the event that you quit, and these can be found in high responsibility positions in industry or government, then severence does not arise if you quit.

So, excepting the above, Severance arises only if you are let go. The longer the period of service, the more severance money is paid. Note the language of sonoman's post, the word used is termination; in other words, when the employer terminates or ends the employee's employment.

Exerpt From Osler's Doing Business in Canada..... (my bolding)

Severance Pay: The federal and Ontario jurisdictions also set out severance pay requirements for employees. In Ontario, severance pay is in addition to notice of termination or termination pay. It must be paid to employees with five or more years of service where:

Any employee is terminated or laid off by an employer with an annual payroll of $2.5 million or more; or
Where 50 or more employees are terminated in a period of six months or less because of the permanent discontinuance of all or part of the business of the employer at an establishment.
Severance pay in Ontario is based upon one week’s pay for each year of service to a maximum of 26 weeks. The legislation provides credit for partial years of employment.

Under the federal legislation, an employee who has worked 12 consecutive months is entitled to severance pay based upon two days’ wages at the regular rate of pay per year of service, or five days’ regular wages, whichever is greater.

 

[pokemon]

You could get severance pay if the reason you quit was due to some improper action on the part of the employer - this is called a constructive dismissal and occurs when an employer's wrongful act forces you to quit.

As for vacation pay you have earned it and it should be paid. If it isn't paid, contact the Employment Standards Branch for some free help.

 

[Sonny]

You could get severance pay if the reason you quit was due to some improper action on the part of the employer - this is called a constructive dismissal and occurs when an employer's wrongful act forces you to quit.

Yes, contructive dismissal is also a form of termination by the employer. If you feel you are the victim of constructive dismissal, you should see a lawyer specializing in employment matters. If you have a well substantiated case, you would likely get much more than the legislated severance (and your legal fees paid as well) .... which is why most employers avoid situations of constructive dismissal and realize they are better off terminating the employee in a normal fashion and paying him/her whatever severance to which the employee is entitled.

 

[jimbo2006]

Many thanks everyone esp. Trevor2136, I wannarocu and Sonny for your advice and input. Very helpful

 

[jimbo2006]

Ok, say your boss does decide to let you go after you've given your 2 weeks' notice --right on the spot (and is required to pay 2weeks severance in lieu of notice, on top of your vacation pay).

What about benefits? Do all benefits automatically cut off immediately when you are let go or is there some sort of statutory requirement to keep the benefits available for a min. amount of time (say 30 days) ?