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Severance Threshold for Ontario Payrolls

Pacquette decisions. The court found these reasons “illogical and the [OLRB’s] analysis flawed.” The key provisions of the ESA at issue are reproduced below: To whom Act applies 3 (1) Subject to subsections (2) to (5), the employment standards set out in this Act apply with respect to an employee and his or her employer if, (a) the employee’s work is to be performed in Ontario; or (b) the employee’s work is to be performed in Ontario and outside Ontario but the work performed outside Ontario is a continuation of work performed in Ontario. Entitlement to severance pay 64 (1) An employer who severs an employment relationship with an employee shall pay severance pay to the employee if the employee was employed by the employer for five years or more and, (…)

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