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You are the new HR manager at a CostLess, a New Brunswick-based grocery chain. The General Manager of the CostLess store in Saint John has contacted you to advise that his long-term Meat Department Manager Terry Sanders, has to be dismissed. "It's not that Terry is a bad employee", the GM has stated; "it's just that the business is changing and we need someone who can keep up with technology." The GM wants to know how much money it will cost to give Terry a fair severance package. In order to answer his question, you have looked in Terry's personnel file and you know know that:
1. Terry is 56 years old.
2. Terry graduated from high school but didn't go to university or any post-secondary institution.
3. Terry earns $60,000 per year and has employee medical benefits.
4. Terry does not have any disabilities.
5. Terry has worked for CostLess for 30 years and does not have a written employment contract. Please formulate a short memorandum to advise the GM of: a) What is the range of reasonable notice compensation that Terry is likely entitled to receive?
b) What does "mitigation" mean and how could it affect Terry and CostLess in this scenario?
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