Skip to main content

THE QUESTION

Should employers have special severance considerations for older workers?

THE ANSWER

Story continues below advertisement

Age is one of the most important considerations in setting a fair severance package. For example, if two employees occupy the same position and both work for the same period of time, the older worker should receive more severance based on the assumption he or she will have a more difficult time securing other work. This assumption may not always be realistic but generally courts will quickly agree to it. The specific amount of severance will always be based on the individual's circumstances but employees who are over 50 and especially those that are over 60 sometimes receive far greater severance than their equally situated but younger counterparts.

THE QUESTION

How does severance affect my employment insurance entitlements? I was terminated without cause and received six months' severance. When can I begin collecting EI?

THE ANSWER

Employment Insurance benefits are paid by the federal government to employees who lose their jobs through no fault of their own and are able to work but cannot find another job. Both employers and employees must report any severance payments to the government and these payments are taken into account when determining when your insurance benefit payments start. Once the severance period expires (in your case, six months), and assuming you are still unemployed, you can begin receiving insurance benefits. The benefits will last for 14 to 45 weeks, depending on how many hours you worked during the last 52-week period before your termination.

Daniel A. Lublin is a partner at Whitten & Lublin, representing both employers and employees in workplace legal disputes.

E-mail: Dan@canadaemploymentlawyer.com

Story continues below advertisement

Have a question about careers, labour law or management? Send it to our panel of experts: careerquestion@globeandmail.com Your name and address will be kept confidential.

Report an error Editorial code of conduct
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies