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A permanent employee works for an employer for 10 years. By agreement, he thereafter becomes a fixed-term employee. Eight months into his fixed-term contract he is retrenched. Is he entitled to ten weeks’ service pay or to no service pay at all?
In this scenario it appears that there were no periods during which the person stopped working for the employer. Section 84 of the BCE Act provides that only a break of 12 months would serve to interrupt the employment relationship long enough to justify the employer ignoring the earlier period of employment. As this was not the case here, the employer owes the employee 10 week’s pay.
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