Many think short\u002Dservice employees are entitled to very little compensation upon dismissal. There is no legal basis for that assumption.
Most would assume that a three-month severance award for a 32-year-old employee with only three-years of service would be reasonable, perhaps even generous. However, the Ontario courts in the recent case of Humphrey vs. Mene Inc. recently granted 12 months to such a short-notice employee.
As mentioned in previous columns, how many months’ severance one obtains is usually determined by factors such as the employee’s age, length of service, compensation, character of employment and the ability of the employee to find a comparable position. Each factor is given different weight depending on their respective importance in a particular case.Article content
The court explained that being terminated for cause six months after being promoted to COO would be difficult to explain to potential employers when seeking comparable employment. The court also accepted Humphrey’s argument that it was difficult for women, especially of such a young age, to find senior executive positions. These acknowledgements dispel the myth that younger employees receive lower awards as, in this case, her youth actually increased her entitlement.
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