| Issue: |
Sub-Issue 1: |
Sub-Issue 2: |
Sub-Issue 3: |
| earnings |
allocation |
by reason of separation |
|
Summary:
Lay-off on 14-12-90. One year later, on 15-12-91, final closing of the plant and separation incentive paid to the claimant in accordance with the Labour Standards Act. Allocation of severance pay retroactively from 16-12-90. Umpire was of the view that the payment was the result of the plant closure and that the amount should be allocated only as of 15-12-91. **Decision overturned by the FCA, which determined that the liability to pay arose from the Labour Standards Act. The FCA noted that the regulations on earnings paid or payable by reason of lay-off or separation from an employment apply not only to permanent loss of employment but also to temporary stoppage of work. Disctinction made between this case and judgment rendered by FCA in King (A-486-95).
