Fred Flintstone has worked for Acme for 35 years. He joined Acme fresh out of high school at the age of 19. Fred has been a diligent employee. After 10 years with Acme, Fred was promoted to a role as a machine operator. At that time, he signed a new employment contract.After working as a machine operator for 10 years Fred was promoted to a role as a production supervisor. He has been a supervisor for the last 15 years.

Unfortunately, Acme has decided to close down the propellor hat division that Fred works in. Therefore, Fred is going to be 'let go'.

The problem you have is deciding what to offer Fred. When Fred was promoted to machine operator the employment contract that he signed stipulated that if dismissed 'without cause' that Fred would receive a total of 10 weeks' worth of pay.

1. Under Employment Standards what must Acme provide to Fred when his employment ceases? (6 marks)
2. Under common law provide and explain the impact of at least 5 factors that would be taken into consideration when calculating what Fred could expect in a severance package? (10 marks)
3. Can Acme hold Fred to the severance provisions in his employment contract? Provide your reasons for your opinion. (4 marks)

Answer rating: 100% (QA)

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