Item - 2024.GG18.35

The General Government Committee:

1. Received the report (November 5, 2024) from the Chief People Officer for information.

This report provides information on non-union employee separation costs for 2023. Separation costs in this report include unilateral decisions made by the employer to exit employees from the workplace where exit payments are higher than legislative minimums. The separation payment provided in each circumstance, is informed by both provincial legislation and the application of a number of factors that are consistently considered by the courts such as length of service, the employee's age, the availability of comparable employment and whether the employee was enticed to leave previous employment, amongst other factors.

In 2014, the City's Auditor General reviewed the City of Toronto's non-union employee separation costs. The review affirmed that separation costs had been awarded in accordance with City of Toronto policies, procedures, applicable legislation and jurisprudence. The Auditor General recommended that separation costs continue to be monitored and that the costs be reported out regularly. 

The City of Toronto has statutory and legal obligations to provide separation pay when the employment relationship is terminated by the City of Toronto without just cause. Administering separation payments for non-union employees whose employment is terminated without cause falls under the authority of the City Manager. 

The total number of exits in each of the reported years represents a very small percentage of the total number of non-union employees employed by the City of Toronto.