Garth was accused by his employer, Redav Inc, of acting in conflict of interest. Garth denies the allegation. Both parties realize, however, that if they take the issue to court, they will both lose precious time and money. The parties have therefore entered into an agreement regarding Garth's departure from the company. Which of the following statements is TRUE?
A) The phrases "severance pay," "severance package," and "settlement package" mean the same thing.
B) By accepting a severance package, Garth gives up the right to sue the company for wrongful dismissal.
C) By merely persuading Garth to sign a release, Redav Inc will eliminate the risk of later being sued by him.
D) If Redav Inc agrees to provide severance pay, Garth will receive payment in lieu of notice, as well as several other payments, including his past contributions to the Canada Pension Plan, vacation and sick pay, and an amount equal in value to the bonus payments that other employees in his position have received in the past fiscal year.
E) Redav Inc is not obligated to provide Garth with a severance package unless the parties agree otherwise.
Correct Answer:
Verified
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