Termination Pay Manitoba
As an employer in Manitoba, you must comply with the Employment Standards Code‘s rules in regard to termination pay. The following information outlines how to correctly handle termination pay to avoid any costly mistakes.
How does termination pay work?
If an employee is terminated, you must provide them with either termination notice, pay in lieu of notice, or a combination of both. Employers who do not want the employee to work throughout the notice period will provide pay in lieu of notice. This will equal the amount the employee would have earned had they worked through the required notice period.
How do you calculate termination pay?
At a minimum, termination pay must equal the wages the employee would have earned had they worked regular hours for the termination period.
If an employee’s wages vary from one pay period to another, termination pay is based on the average of the earnings for regular weekly hours worked over the last 6-month period. Vacation wages and overtime wages are not added to wages paid in lieu of notice.
Are there any exceptions for providing termination pay?
There are some exceptions when termination pay does not need to be provided. These include:
- Employment is for less than 30 days.
- Employment is for a fixed term and terminates at the end of the term.
- Employment is less than 12 months, for a specific task and terminates when that task is complete.
- Employee is employed in construction.
- Employee gives notice to quit or retire on a certain date.
- Where employment is terminated for cause.
It is critical you know when to provide termination pay. Not meeting this requirement could result in a suit against your business. If you need any help with termination pay, or just have a question, reach out to Employer Line’s experts today.
Have questions About Termination Pay in Your Workplace?
If you are unsure whether you are handling termination pay correctly, our team of HR experts can help. We’re here 24/7 to guide you through the process. Our goal is to help Manitoba’s employers stay compliant and on the path to success.
Call our free employer advice line today at 1 (204) 201-1648