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Severance law under fire

There’s no issue with an Ontario law that allows companies with fewerthan 50 employees to close without paying them severance, LabourMinister ...

There’s no issue with an Ontario law that allows companies with fewer than 50 employees to close without paying them severance, Labour Minister Brad Duguid said yesterday despite complaints from workers about a loophole that leaves them with nothing after decades of service.


Ontario’s Employment Standards Act allows companies with fewer than 50 employees and a payroll of less than $2.5 million to avoid paying severance when they close, which the Communications, Energy and Paperworkers Union and the New Democrats said is a loophole that must be closed.


NDP Leader Howard Hampton introduced a private member’s bill yesterday that would change the law so companies with at least 25 workers and a payroll exceeding $1 million would be required to pay severance.


 
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