Question
Marcia has been an advertising executive with Creative Inc., a medium-sized advertising agency in downtown Toronto, for the past 7.5 years. She is 38 years
Marcia has been an advertising executive with Creative Inc., a medium-sized advertising agency in downtown Toronto, for the past 7.5 years. She is 38 years old and earns $120,000 per year. There are seven account managers who report to her. Last month Creative Inc. decided that it needed to do more in the digital sphere and that means it will have to downsize Marcia's department, starting with Marcia.
CreativeInc. has an annual Ontario payroll of $2.6 million.
They want to know the size of the severance package they must offer to Marcia under Canadian law? Answer that question based on each of thefollowingtwo separate scenarios. (In other words, provide an answer for both scenarios).
SCENARIO 1:
Assume for this scenario that thereis a well-drafted termination clausein Marcia's employment contract that limits her entitlements on termination without cause to those set out in Ontario's Employment Standards Act. What are her entitlements in this situation?(Express your answer in terms of the number of paid weeks or months she must receive, rather than a dollar amount)Explain your answer.(3 marks)
SCENARIO 2:
Assume for this second scenario that there isno termination clausein Marcia's employmentcontract. What is Marcia entitled to receive under the common law? (Express your answer in terms of the range of paid weeks or months she must receive, rather than a dollar amount) Explain in your answer the keyfactors that Canadian courts consider in determining the amount ofreasonable notice (or pay in lieu of notice) owed toan employee who is dismissed on awithoutjust causebasis under the common law.
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