Common use of LAY-OFF PAY Clause in Contracts

LAY-OFF PAY. An employee who is permanently laid off, or otherwise terminated (except for just cause) will receive severance pay or given notice in writing as set out below. From six (6) months to two (2) years of service – two (2) weeks severance or notice or combination up to two (2) weeks. For each additional year of service - one (1) week's severance or notice to a maximum of twelve (12) weeks for twelve (12) years of service. The above is payable after twelve (12) months of layoff, at which time the employee loses his or her right to recall. An employee can claim his/her severance after thirteen (13) consecutive weeks of layoff if he or she terminates employment and waives recall rights under the collective agreement. Years of service shall be interpreted to mean the total numbers of years of service between the date of employment and the date on which the employee's job ceases. The employee may elect to receive his severance pay either in a single lump sum, or in equal biweekly payments to be spread over as many weeks as are included in his or her severance pay allowance. Anytime an employee is paid severance they waive recall rights under the collective agreement.