Section 44Part 5 — Severance Pay
Liability of predecessor and successor-employers
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Where an employee accepts employment with a successor-employer under paragraph (b) of section 43 then, in the event of a subsequent termination of that employment by that successor-employer, the successor-employer shall be responsible for the payment of the employee's severance pay computed on the basis of that person's full tenure of employment by themselves and all predecessor-employers.
Where an employee's employment is temporarily terminated with a date of recall given that person less than six months in the future or with no date of recall given that person, and if within six months thereafter the employer transfers that person's business to another, then (using the standards set forth in section 42) if severance pay subsequently becomes due without the employee having been recalled, the transferring employer and the person to whom that person's business was transferred shall be jointly and severally liable for the payment of the severance pay plus interest.
Cross References
- Section 43 of Labour Act
section 43 - paragraph (b)
- Section 42 of Labour Act
section 42 - standards