Former HR Director Receives a Severance Payment

Janice Platt, who is now the former director of human resource of the City of Kawartha Lakes will be receiving a large severance payment after the position in which she worked, was eliminated in 2011. While the position was eliminated last year, Platt will actually remain on payroll for the entire year of 2012 and will receive a severance payment of just about $171,000 throughout the year.

During the month of May in 2011, Platt’s position was eliminated after the City did some restructuring as a means of organizing and tying some loose ends. Because she was terminated due to the elimination of her position, and not because she was fired for wrongdoing or misconduct, Platt was entitled to a severance payment. She has since accepted a severance payment, which will actually total more than her average salary of $132,000 each year. The reason the severance payment will be nearly $171,000 instead of $132,000, is because a 1.8 percent wage increase has been added due to the amount of years Platt has worked within the HR department. And, Platt will also be able to get all of her retirement benefits when she turns 65, which will only be a few years from now, in September of 2016.

Platt has asked to be paid via salary instead of receiving an entire lump sum of the $171,000 severance payment. This is a wise choice which also means that Platt will remain on the payroll for the entire year, being paid a specific amount on a weekly basis, just as she would if she were still employed, from June of 2011 until September of 2012. Platt earned, on average, more than $100,000 each year which is why her salary information has been provided to the public. During 2010, Platt received a total of $132,262.60 for the entire year. Due to the amount she earned during that year, her severance payment would have been at about $165,329, but with the 1.8 percent wage increase, the total reaches $168,304, along with five more months prior to the termination, which brings the overall severance payment for Platt to approximately $170,685, close to $171,000.

The new CAO, Al Horsman, has confirmed the agreement that was made with Janice Platt, stating that the severance payment agreement is, in fact, a part of a $583,754 figure that was reported to council by the HR department during the month of November. Horsman stated that the figure reported to council represents any severance payments with or without a cause, which includes positions that were simply eliminated. And, the elimination of a position is what happened in Janice Platt’s situation. Horsman says that the figure does cover the amount of money that will be paid to Platt.