Decision A0580.07

Summary:

Following the termination of the claimant's employment and the sale of the plant, the claimant received a lump sum payment originating from National Sea for contributions to a pension plan. The claimant was advised that the conclusion of the pension plan was effective following the sale of the plant. The Commission maintained that these contributions should be allocated persuant 36(9) of the EIR. According to the BOR, the earnings must be allocated in accordance with 36(19)(b) of the EIR because the conclusion of the pension plan was agreed to between the former employer and the employees. When the new owner took over the plant, the conclusion of the pension plan was not part of the contract discussions. The Umpire is satisfied that there was a causal connection between the conclusion of the pension, the sale of the plant and the termination of the employees. For these reasons, the decision of the BOR set aside and the Commission's appeal is allowed. Due to the connection between the termination of the pension plan and the sale of the property, the contributions must be considered earnings on separation from the former employer and should be allocated in accordance with 36(9) of the EIR. The main issue is if the payment made to the employee following the conclusion of the pension plan was caused by the sale of the plant or whether the conclusion up was an independent transaction as provided by 36(19)(b) of the EIR. The FCA concludes that the Umpire erred when he substituted his own view of the evidence for that of the BOR. The FCA confirmed that the BOR had sufficient evidence before it to conclude as it did.

---