Interpretation Guidelines Manual British Columbia Employment Standards Act and Regulations

EMPLOYMENT STANDARDS ACT - PART 8 - TERMINATION OF EMPLOYMENT

ESA Section 68 – Rules about payments


Contents:

Summary
Text of Legislation
Policy Interpretation
Related Information


Summary

This section explains what payments an employee is entitled to under this Part of the Act and the impact of payments other than those provided under this Part.


Text of Legislation

68. (1) A payment made under this Part does not discharge liability for any other payment the employee is entitled to receive under this Act.

(2) The termination pay requirements of section 64 apply whether or not the employee has obtained other employment or has in any other way realized or recovered any money for the notice period.

(3) If an employee is not covered by a collective agreement, the director may determine that a payment made to the employee in respect of termination of employment, other than money paid under section 64, discharges, to the extent of the payment, the employer’s liability to the employee under section 63.


Policy Interpretation

Subsection (1)

Employees are entitled to receive all other payments that may be owing to them under the Act in addition to individual and group termination pay. This includes all outstanding vacation pay or banked time.

Subsection (2)

If an employer has not given adequate written notice of group termination, so it is required to pay termination pay in lieu, the group termination pay must be paid even if the employee obtains other employment or receives other money for the period of time that should have been covered by the notice period.

Payment of individual termination pay under s. 63, or under a collective agreement, cannot be used to offset the group termination pay requirements in s.64 of the Act.

An employer who has given adequate written notice of group termination has discharged its liability under s. 64 of the Act. If an employee quits during the notice period, the employer is not required to pay termination pay in lieu.

If an employer gives part notice and part termination pay, an employee who quits during the notice period is still entitled to receive the termination pay he or she would have been entitled to if they had worked out the notice period.

Subsection (3)

If payments are made to employees other than those required by s.64, the director may determine that such payments discharge the liability to pay compensation for length of service (see s.63).

Employees covered by a collective agreement

Under s.3 of the Act, parties to a collective agreement are prohibited from giving up the specific employment protection provided in s.68 (rules about payments on termination). Employers, employees and unions may not negotiate terms and conditions that do not meet the standards set out in s.68.

Under s.3(7) of the Act, where there is a collective agreement, the enforcement of matters relating to s.68 is through the grievance procedure, not through the enforcement provisions of the Act.


Related Information

Related sections of the Act or Regulation

ESA

Other

See Employment Standards Factsheets

Factsheets

Termination of Employment

Collective Agreements and the Employment Standards Act