Examples
Employee at the general rate
Mathieu is credited with 7 years of uninterrupted service. His work schedule varies from week to week. His wage is $8.50 an hour. The employer closes down his enterprise and wants to pay Mathieu a compensatory indemnity. How is this indemnity calculated?
Mathieu is entitled to 4 weeks of notice since he is credited with between 5 and 10 years of uninterrupted service. It is therefore necessary to establish his usual wage and calculate the indemnity to which he is entitled. During the 4 weeks preceding his layoff, Mathieu worked 48 hours, 39 hours, 41 hours and 40 hours respectively. This number of hours is representative of the number of hours usually worked by Mathieu. Unfortunately for Mathieu, overtime is not taken into account in the calculation of the indemnity. The normal workweek lasts 40 hours.
Calculation method | |
|---|---|
Formula | Mathieu’s indemnity |
Week 1 | $340 |
Week 2 | + $331.50 |
Week 3 | + $340 |
Week 4 | + $340 |
Wages of the 4 weeks preceding the notice of termination of employment, excluding overtime | = $1,351.50 |
Compensatory indemnity | = $1,351.50 |
Employee on commission
Employee on commission
Anne is credited with 11 years of uninterrupted service. She receives $150 in basic wages per week plus commissions. She is paid by the week. The employer decides to dismiss her and wants to pay her a compensatory indemnity instead of giving her a notice of termination of employment. How is her indemnity calculated?
Anne is entitled to 8 weeks of notice since she has more than 10 years of uninterrupted service. It is necessary to take into account the weekly average of her wages during the complete periods of pay in the 3 months preceding her dismissal, which occurs on April 20th.
Calculation method | |
|---|---|
Formula | Anne’s indemnity |
Number of complete workweeks between January 20th and April 19th X basic wages | 13 X $150 |
= | = $1,950 |
+ commissions received during the 3 months | + $4,200 |
wages received during the 3 months | = $6,150 |
÷ number of weeks worked during the 3 months | ÷ 13 |
Average weekly wages | = $473.08 |
X number of weeks equal to the length of the notice based on the length of uninterrupted service | X 8 |
Compensatory indemnity | = $3,784.64 |