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Dialogue A Publication of the Ontario Electrical League Issue 41-2 • Summer 2019
Do You Know the Difference Between a Layoff and Termination?
Submitted By: Sherrard Kuzz LLP P eople often use the terms “termination” and “layoff”, assuming they mean the same thing. While in casual conversation, glossing over the difference may not be important – but for an employer, failing to understand the difference can present a missed opportunity and create unnecessary risk for your business. Having the legal right to temporarily lay off an employee can provide an employer flexibility to respond to a slowdown or change in business without the need to permanently terminate employment and pay for costly notice periods. However, unless an employment contract includes an express or implied right to lay off an employee, an employer has no right to do so. If there is no express or implied right, a layoff may amount to a fundamental breach of the employment contract (constructive dismissal) entitling the employee to notice or pay in lieu 1 and possibly severance pay. If You’re an Employer, You Should Submitted By: FBC, Canada’s Farm & Small Business Tax Specialist I t takes a lot of work to get a business up and running, and even more work to make it a success. There are also a lot of things that need to be done when closing a business, whether it’s a sole proprietorship, partnership or corporation. Taking care of any tax obligations you have should be a top priority. TO ENSURE DELIVERY, MAINTAIN MEMBERSHIP! PUBLICATIONS MAILAGREEMENT No. 40032872
Editorial Focus: HUMAN RESOURCES 1 The Difference Between a Layoff and Termination 1 Your Tax Responsibilities When Closing a Business 3 Message from the Chair 3 Message from the President
Here is an overview of what you need to know. Termination vs. Layoff When an employee is terminated, the relationship between employee and employer ceases to exist. When an employee is laid off, the “employer-employee relationship is said to be suspended rather than terminated” because there exists the possibility of a return to work.
7 Employee Dishonesty and How to Prevent It 8 ESA: Risk-based Oversight and Defect Ratios 10 2019 Electrical Industry Conference Coverage 16 HR Outsourcing
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What Are the Canadian Tax Responsibilities when Closing a Business?
18 Doing Diversity and Inclusion Right 20 Three Limiting Beliefs that Stifle the Success of Contractors 22 Members’ News
Below, you’ll find a few tax obligations and tax tips for successfully closing a business. Dissolving a Corporation Dissolving a corporation is the legal act of ending your business. A business can dissolve once it has no property or liability. You can also start to dissolve a business before all of the assets have been liquidated. Every business in Canada needs to file a Notice of Dissolution or Change of Proprietorship (or Partnership). Corporations will file an Application for Voluntary Dissolution. Bankrupt corporations cannot apply to be dissolved.
Continued on page 4 4www.oel.org
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