7.2 Key Terms

layoff: An employee’s work is reduced or completely stopped for a period, but the employee expects that they will be called back to work at some point in the future. The layoff is considered a termination of employment when the employer has no intention of recalling the employee to work.

severance pay: Also known as termination pay, severance pay is payment in lieu of notice of termination. The amount depends on the length of employment and the employment contract, and is guided by the Employment Standards Act.

termination: An employer ends a contract of employment with an employee. “Termination with cause” occurs when the employee is dismissed for a serious reason related to the employee’s conduct. “Termination without cause” is termination for reasons that are not related to misconduct,