Common use of Severance Option Clause in Contracts

Severance Option. If the Employer ceases to operate the retirement home, the Employer will pay any employee who loses their employment a severance payment of two weeks for every complete year of service, to a maximum payment of 40 weeks. This payment will be deemed to be inclusive of any obligation under the Employment Standards Act, unless the obligation under the Act is greater, in which case the Act applies. Any employee who accepts this severance payment waives any right to recall. In addition, the Employer will continue to provide health and welfare benefits for up to six months to those employees enrolled in such benefits at the time the Employer ceased operations, provided the employee continues to pay her or his share (if any) of the premiums, and provided such benefits are not otherwise available to the employee.