Cashing of Cheque Does Not Constitute Acceptance of Offer

|Canadian Labour Reporter|Last Updated: 02/08/2011

A number of workers employed by a waste management company who were on modified duties due to medical restrictions were informed that their jobs were being eliminated.

Individually summoned to meetings attended by representatives from management, human resources and the union, the workers were presented with a letter that was read aloud to them.

The letter informed the workers that the layoffs were permanent and outlined a support package based on their entitlements under the Employment Standards Act. The letter included an offer of severance. The letter stipulated that the offer was made “without prejudice or precedent.” The workers were told that a cheque for the severance owed to them would be mailed. However, they were not asked to sign a release or any other document indicating that they were surrendering any claim in order to receive payment.