implications of wrongful dismissal on retirement plans
When employees are laid off or fired, they often have to leave their employment immediately. This may leave them with no financial security in retirement. Luckily, most workers are able to claim severance package compensation that can help them through this difficult time. However, these packages can be very different depending on the type of pension plan that an employee participates in.
A wrongful termination can impact an employee’s base salary, bonuses, health benefits and pension plans. For this reason, it’s important to speak with a Toronto wrongful dismissal lawyer if you have been wrongfully dismissed from your job. Bune Law can help you understand the implications of wrongful dismissal on your retirement plans and other severance package entitlements.
The first question that comes to mind when an employee is terminated from a federal job is: What happens to my retirement benefits? Fortunately, most federal employees are able to retain their benefits. However, there are a few important exceptions to this rule. For example, an employee will forfeit their retirement benefits if they are convicted of certain serious crimes.
What are the implications of wrongful dismissal on retirement plans?
Another exception applies to a situation in which an employer terminates an employee for cause. In this case, the employee’s severance package will include their salary in lieu of notice. The amount of severance will vary, but is usually in the range of one month of pay for every year of service. The courts decide how much notice is reasonable, and they typically base their decision on factors such as length of service, age, character of employment, and chances of re-employment.
The type of pension plan an employee is part of will also determine how much severance they’ll receive in the event of a wrongful dismissal lawyer. If the employee was a member of a defined contribution pension plan then their severance package will typically include a lump sum payment equal to the value of their employer’s contributions. If the employee was a member of defined benefit pension plan, measuring their pension loss will likely require an expert analysis by a pension actuary.
Finally, an employee’s severance package can include additional payments for loss of benefits such as disability coverage. Depending on the decision at trial, this type of loss may be deducted from wrongful dismissal damages.
While it is rare for an employer to wrongfully dismiss an employee, there are cases in which this does happen. The consequences of this can have a significant effect on an employee’s future, and they deserve to be compensated for this injustice. If you have been wrongfully dismissed from your job, contact a Toronto wrongful dismissal lawyer at Bune Law right away to discuss how we can help you. We can also review your severance package to ensure that you’re receiving your minimum entitlements. We offer a free consultation on all workplace related issues. To schedule a free case evaluation, please fill out our online form or call us today.
