Reduced Severance Pay on Refusing Clause Samples
The "Reduced Severance Pay on Refusing" clause stipulates that an employee will receive a lower severance payment if they decline a reasonable offer of alternative employment from the employer. In practice, this means that if an employee's position is being eliminated but the employer offers them another suitable role and the employee refuses without valid reason, their severance entitlement is reduced according to the terms set out in the contract. This clause primarily serves to encourage employees to accept reasonable alternative positions, thereby minimizing the employer's severance costs and facilitating workforce transitions.
Reduced Severance Pay on Refusing a Position
1. An employee who refuses to accept a position under Article 11.13.1 or
Reduced Severance Pay on Refusing a Position
1. An employee who refuses to accept a position under Article 11.11.1 or 11.11.2 (except in 2. below) will be terminated and is disqualified from receiving severance pay under Article 11.14 and shall have no recall rights under Article 11.17. Such employees may elect to take a lump sum severance payment, or severance may be divided into two (2) equal instalments, the first on the date of termination and the second on or about January 15 of the following year, subject to statutory deductions which is the lesser of:
(i) two weeks' base pay per year of service up to a maximum of 52 weeks’ base pay (payments for incomplete years of service will be pro-rated); or
(ii) an amount which equals base pay from the end of the notice period until the end of the month in which the employee reaches his/her 65th birthday.
2. In cases where an employee refuses to accept a position where the new classification provides either a reduction of base wages of two