Severance Pay Entitlement To Consider Global Payroll - Ontario Superior Court (Divisional Court)
June 2021
This week, the Ontario Superior Court of Justice (Divisional Court) set aside a decision of the Ontario Labour Relations Board (“OLRB”)1 in which the OLRB ruled that payroll means only Ontario payroll for purposes of severance pay entitlement under the province’s employment standards legislation. Describing the OLRB’s decision as “unreasonable”, “illogical” and “flawed”, the Divisional Court held the calculation of payroll includes an employer’s global payroll.
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