Sunday, March 14, 2010

The Question of Severance Pay

There appears to be a public outrage about a group of people who are being terminated from the Ontario Ministry of Revenue and being taken on strength by the federal Canada Revenue Agency.  The change in their employ is happening because Ontario is implementing a federal harmonized sales tax later this summer.
It seems that the public -- because the media is telling them so -- is viewing this as an absurd payout, apparently because the persons in question are not truly changing jobs; they're not even changing physical locations.
But stop and think about it for a minute.
If your employment ends with someone, you are entitled to severance and that severance bank is not transferable to your new employer.  It is payable to you by the employer for whom you put in the time.
Should this group of people have been simply terminated and were really out of work, their right to that severance would not be questioned.  They then would have been free to accept new employment anywhere they chose, including with the Canada Revenue Agency, at some future date.
Why, then, is anyone questioning their right to their severance pay now?  They earned it with the Ontario Ministry of Revenue and they will no longer be employed by that Ministry.
Their severance bank with their new employer, the Canada Revenue Agency, will start at zero on the day they begin their employment with that Agency.
Should they forfeit whatever severance they had earned with the Ontario Ministry because the optics don't look good?
They are, after all, entitled to their entitlements.

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