Employers must ensure that their communication with employees regarding employee benefits is clear and comprehensive. At no time is this issue more important than when an employee is being terminated, since issues concerning notice and entitlement to compensation and benefits can often be uncertain.

The potential for employer liability when communicating employee benefits has been repeatedly exposed through Canadian court challenges. Cases such as Allison v. Noranda Inc. provide clear signals that care should be taken when communicating benefits to employees on termination. In this case, the plaintiff Mr. Allison was terminated from employment without cause at the age of 53. At the time of his termination, Mr. Allison was given two severance pay options. The first was immediate termination coupled with a lump sum severance payment.

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