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Severance pay

Usually when a worker is “fired without cause,” “let go,” “dismissed,” or “laid off” without notice, the worker will receive severance pay of some amount.The amount will usually depend on how long the worker has been employed at the company. The money is given to help the worker through the initial period of unemployment. Notice periods and severance pay are issues that are determined by provincial or territorial labour legislation. In some instances, individuals can appeal severance, either through a labour tribunal or through a challenge in the courts.

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Business plan

Any new business will need a business plan.The business plan will guide the start-up of the business and, if necessary, also be used to help raise money for the business. See page 235 for a list of the sections that are common in a business plan.There are also sample business plans and business plan guides available on the Internet. Learn more

Probationary periods

Many employers will hire workers for a probationary period. During this time, the employee will work to show if he or she can do the job effectively. At the end of the probationary period, the employee will usually either be offered a permanent job or be let go. A typical probation period is about three months. Often an employee will not receive “benefits” until after the probationary period is over.

Negotiating a salary

Although companies use “salary scales” to determine the salary for a job, in some cases, an employee will be in a position to negotiate a salary.That is, there will not be a firm wage or salary for a position.The pay will be determined on the basis of the employee’s education, experience, abilities, and negotiating skill. If you are in such a situation, make sure that you represent yourself well and seek out a fair and appropriate wage or salary. Learn more

Identifying opportunities

To be successful, a new business will have to respond to a real “opportunity,” that is, address a need, a want, or a problem.An entrepreneur will then set up a business to produce a product or service that responds to the need, want, or problem. If it is a real opportunity, enough people will buy the product or service to enable the business to make a profit. Be aware that many good “ideas” are not “opportunities.” Learn more

Vacation pay

Often, employers provide vacation pay as a percentage of net pay for the period of time worked, rather than providing time off.This method is most common for parttime workers.The percentage of pay for paid vacation time is governed by provincial or territorial labour legislation.

Employment insurance

When you are working, Employment Insurance, or EI, is subtracted from your pay. This is money that is paid to the federal government to support programs designed to assist those who are unemployed or underemployed. If you lose your job, you may be able to collect Employment Insurance while you look for another job.There are rules and regulations that determine when you get EI, how much you get, and how long you can get it.Visit www.servicecanada.gc.ca/eng/sc/ei/index.shtml or DayPlanner web site – Link #175.

A business can be incorporated at the federal or provincial level in Canada and become a corporation.This means owners/investors have “limited liability” and can only lose what they have invested.There are small corporations, large corporations, and multinational corporations, which conduct business in more than one country.The Canadian Federation of Independent Business (CFIB) is an association that helps small businesses in Canada.You can get information on starting a business from the CFIB website at www.cfib.ca.

Testing your business plan

Before starting a business, an entrepreneur will want to “test” the business plan by asking some people with knowledge and experience to look over the plan and provide opinions on it. If the entrepreneur is trying to raise money for the business, those considering investment will be one test for the plan.There are organizations that will try to help entrepreneurs by reviewing their business plans. Learn more

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