How exactly to calculate severance pay?

Question

I have several questions regarding severance pay. Is it better to ask them separately or in one question?

I had worked for an employer for 8 months and was terminated without cause. The schedule changed each week and hours ranged from 30-40 per week. Further, the clock in and out system did no rounding and we were instructed to leave early if possible. So for example if I was scheduled to work until 5:00PM it would be normal to clock out at 4:51PM and not get paid for the 9 minutes.

From the legislation:

(4) The amount the employer is liable to pay becomes payable on termination of the employment and is calculated by

(a) totalling all the employee's weekly wages, at the regular wage, during the last 8 weeks in which the employee worked normal or average hours of work,

(b) dividing the total by 8, and

(c) multiplying the result by the number of weeks' wages the employer is liable to pay.

So do I add up the actual hours worked over 8 weeks or just the time I was paid for?

Are gratuities included in the severance pay?

Where does the 8 weeks start from, is it the last day of work or when notice was given for termination? Does it make a difference what the start of the work week is, for example if I got terminated just before work on the first day of the work week could that count as 0 hours in that week?

Answer 1

So do I add up the actual hours worked over 8 weeks or just the time I was paid for?

You add up the wages received during the last 8 weeks, not necessarily consecutive, during which you have worked a normal or average hours for you. If you were ill, or on maternity leave, those weeks don't count. An example is included later in your link, under “Normal” or “average” weekly hours.

Are gratuities included in the severance pay?

Gratuities are not wages and are not included in the calculation.

Where does the 8 weeks start from, is it the last day of work or when notice was given for termination?

The last day of work. Notice can be given instead or in combination of severance pay.

Does it make a difference what the start of the work week is, for example if I got terminated just before work on the first day of the work week could that count as 0 hours in that week?

0 hours are not a normal or average hours of work for you (or anyone), so it does not matter.

Your contract with your employer can use a different calculation method or give you severance pay when not required by law, but it cannot be less than what you are entitled to under the employment standards.