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Best Practices in Termination and Severance in Canada

290 organizations from all sectors and regions of Canada participated in a survey on termination and severance best practices conducted by Logan HR (a member of Verity Filion Inc.) in fall 2014. Results indicated a changing format for severance pay, with more prevalence to lump sum payments versus continuation of salary. 

The most typical amounts of severance per year of service depended on position level:

Executive Management Professional Other
1 month/year 1 month/year 3 weeks/year 2 weeks/year

 

What do top employers do differently?

  • Have a detailed project plan for downsizing;
  • Follow established process for individual terminations;
  • Have robust severance packages, including benefits continuation, non-compete and non-solicit clauses, and career transition support.

The top 3 reasons for providing career transition support:

  • It’s the right thing to do (67%)
  • Terminated employees will receive job search skills and acquire another job faster (59%)
  • Sends a positive message to remaining employees (48%)

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