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Expert: Howard Lewitt
Is severance pays subject to employment insurance?
Howard Lewitt answered:
Yes. If an employee receives a certain period of severance, she is required to pay back the EI earned during the identical period which the severance represents. Therefore, it is helpful to have severance allocated to other things ie legal costs, interest, mental distress, etc., since EI need not be reimbursed from that amount.
About the author
Howard Levitt, Counsel to the national law firm Lang Michener. He is author of, The Law of Dismissal in Canada, The Quick Reference Guide to Employment Law and an upcoming book on Canadian Hiring Law. He is Editor In Chief of the Dismissal & Employmnet Law Digest.
Phone: (416) 307-4059
Website Bio: http://www.langmichener.ca/index.cfm?fuseaction=people.personDetail&id=9659.