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Saving Money on Employees

Notice: The following is not legal advice, and cannot be applied to any particular situation. It is meant only as general information for the purpose of discussion. If you have a particular employment law issue, you should retain a qualified, licensed lawyer for assistance.

Most business owners know the day-to-day costs of having employees: wages, EI and CPP contributions, benefit plans, overtime, etc. But what many do not know is the cost of terminating employees.

"But", you may be saying, "don't I just have to comply with the simple termination and severance provisions of the Employment Standards Act?" (the "ESA"). In a word: NO. Not even close.

Many employers (and employees) don't realize that when they terminate an employee the ESA is just the starting point. In most cases, the employee is legally entitled to much more. The total they have a right to claim, however, is never easy to calculate.

What this means is that if you terminate an employee and that employee gets a lawyer, you are likely to be in for a very expensive lesson in employment law, called a "wrongful dismissal" claim - one you will probably lose...


But there is a solution, and it is called an employment contract. It is an agreement entered into between you and your employee which sets out clear rules for what happens in a variety of possible scenarios, including a termination. And it will, if properly drafted, save you money, time and aggravation in the event of a dispute.

Take the time to arrange a FREE CONSULTATION with Sommer Law by sending us an email HERE in order to determine what can be done to protect your company against expensive employee claims. You and your wallet will be happy you did! 

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