As an employer in Newfoundland & Labrador, you must comply with the Labour Standards Act (LSA). This includes rules pertaining to termination pay. Below you’ll find an outline of how to correctly handle termination pay in the event of a termination or resignation.
How Does Termination Pay Work?
If an employee is terminated, you must provide them with either termination notice or pay in lieu of notice. Employers who do not want the employee to work throughout the notice period will provide pay in lieu of notice, which equals the amount the employee would have earned had they worked through the required notice period.
If you need any help understanding how termination pay works in Newfoundland & Labrador, give our experts a call today. Employer Line is here to ensure your business is secure and compliant.
How to Calculate Termination Pay
If an employee has been working for you for less than six months, you do not have to give them advance notice of the
termination or layoff. But if you’ve employed them for at least six months you must give them at least two weeks’ written notice. This increases to four weeks if you’ve employed the worker for five or more years.
At a minimum, termination pay must equal the wages the employee would have earned had they worked regular hours for the termination period.
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 guide you through the process. Call our free employer advice line today at 1 (888) 219-8767.