PERSONAL AND CONFIDENTIAL
Ardashir Hemmati
DELIVERED VIA EMAIL
Dear Ardashir:
RE: Benefit Continuance, Option to Participate in CEWS and Important Employment Info
First and foremost, we hope you and your family are staying safe and healthy during the shutdown for COVID-19. We are writing to you because we want you to know that Gateway is working hard to ensure we can safely reopen as soon as possible. We can’t wait to welcome you back and look forward to seeing you when we are able to reopen.
We are also writing to you to provide you with an opportunity to select one of two options below, which are summarized here for convenience. If you wish to choose one of the two options, indicate your selection in the appropriate space below, sign this letter, and return a copy to us by June 30, 2020. Please note that if you do not select either option, you will remain on leave of absence until we are permitted to reopen gaming operations, but will not gain the advantages provided in these options. For clarity, if you currently have benefits and want them to continue, you must accept one of the options.
The first option allows for continuation of group health, dental and life insurance benefits that you may currently be receiving (“Existing Benefits”) until August 31, 2020. Please note Short-term/Long-Term coverage is not available while you are not working, but will resume when you return to work. Option 1 also places you on a paid leave of absence (“Paid LOA”) subsidized by the Canada Emergency Wage Subsidy (“CEWS”) that is retroactive to June 7, 2020 and will continue until one of a number of events occurs. Please note that Gateway will incur expense to place you on Paid LOA, but we believe this is an important benefit that may be valuable to our employees, so we are willing to pay this cost. Option 1 also provides a means to protect against a future termination of employment by extending the permissible length of a layoff. We believe Option 1 may be preferred by employees who receive more on our proposed Paid LOA than they receive under the Canada Emergency Response Benefit (“CERB”) or Employment Insurance (“EI”) benefits.
The second option also sees Existing Benefits (if any) continue until August 31, 2020 and the protection against a future termination by extending the permissible length of layoff, but does not involve the selection of Paid LOA as offered in Option 1. Option 2 includes the possibility of Paid LOA just prior to a recall or just after a subsequent layoff, which is critically important to Gateway receiving the subsidy under CEWS for active working hours This in turn will better enable us to more quickly return to full operations which is critical to the health and sustainability of our business. We believe Option 2 may be preferred by employees who receive more on CERB or EI than the Paid LOA.
Please carefully review this entire letter, which lays out in further detail the terms of Options 1 and 2.
OPTION 1
1.Your Existing Benefits (if any) will continue until August 31, 2020.
2.You were on an unpaid leave of absence (“Unpaid LOA”) from when we were required to close in mid-March 2020 until June 6, 2020.
3.Retroactively as of June 7, 2020, you will begin a paid leave of absence (“Paid LOA”). This Paid LOA continues until the earlier of your return to work, the end of the CEWS program, or end of Gateway’s eligibility under the CEWS program. Any subsequent periods when you are not actively working will be Paid LOA until the end of the CEWS program or Gateway’s eligibility under the CEWS program.
4.While on a Paid LOA, you will be paid the lesser of: 75% of your weekly Baseline Remuneration as defined in the CEWS program; OR $847.00 per week.
5.The Paid LOA is inclusive of entitlements to vacation and statutory holiday pay which will be included in your paid leave earnings each pay period, less relevant statutory deductions (e.g. CPP, EI, taxes). We will also continue to hold any employee-paid benefit premium deductions (if applicable) in arrears and no RSP contributions (if applicable) will be taken while on the Paid LOA.
6.While on Paid LOA, you may be recalled to work, and you shall have an obligation to report to work once recalled.
7.If your Paid LOA ends because the CEWS program expires or because Gateway is no longer eligible under the CEWS program, you will be returned to an Unpaid LOA until we are permitted to re-open gaming operations. If we are already permitted to open gaming operations when your Paid LOA ends, you may be laid off.
8.We may offer you a return to work while you on an Unpaid LOA, but you will not be required to agree to do so. A return to work once recalled from layoff is required.
9.As noted above, Gateway shall have the right to place you on temporary layoff. The duration of the temporary layoff may be as long as permitted by the Employment Standards Act, as amended.
10.Income received under this Option 1 may impact government support programs you may be receiving, including Employment Insurance benefits or the Canada Emergency Response Benefit (“CERB”). It is your responsibility to accurately disclose employment income as required for all such government programs. We encourage you to visit Canada.ca/revenue-agency to review your obligations, including repayment.
OPTION 2
1.Your Existing Benefits (if any) will continue until August 31, 2020.
2.You were on an Unpaid LOA from when we were required to close in mid-March 2020, and this Unpaid LOA will continue until such time as the earlier of your return to work or when we are permitted to reopen gaming operations. If there is no work for you upon such reopening, we may temporarily lay you off.
3.To ensure Gateway receives CEWS subsidy for working hours, Gateway may place you on Paid LOA prior to your return to active duty, or after a subsequent shortage of work. The Paid LOA may be for some or all of the balance of the CEWS claim period in which the recall or shortage occurs, respectively. This may be done retroactively.
4.While on a Paid LOA, you will be paid the lesser of: 75% of your weekly Baseline Remuneration as defined in the CEWS program; OR $847.00 per week.
5.The Paid LOA is inclusive of entitlements to vacation and statutory holiday pay which will be included in your paid leave earnings each pay period, less relevant statutory deductions (e.g. CPP, EI, taxes). We will also continue to hold any employee-paid benefit premium deductions (if applicable) in arrears and no RSP contributions (if applicable) will be taken while on the Paid LOA.
6.While on Paid LOA, you may be recalled to work, and you shall have an obligation to report to work once recalled.
7.If your Paid LOA ends because the CEWS program expires or because Gateway is no longer eligible under the CEWS program, you will be returned to an Unpaid LOA until we are permitted to re-open gaming operations. If we are already permitted to open gaming operations when your Paid LOA ends, you may be laid off.
8.We may offer you a return to work while you on an Unpaid LOA, but you will not be required to agree to do so. A return to work once recalled from layoff is required.
9.As noted above, Gateway shall have the right to place you on temporary layoff. The duration of the temporary layoff may be as long as permitted by the Employment Standards Act, as amended.
10.Income received under this Option 2 may impact government support programs you may be receiving, including Employment Insurance benefits or the Canada Emergency Response Benefit (“CERB”). It is your responsibility to accurately disclose employment income as required for all such government programs. We encourage you to visit Canada.ca/revenue-agency to review your obligations, including repayment.
We continue to experience an unprecedented situation, in Canada and globally, as we all cope with the COVID-19 pandemic. We trust that you recognize this, we appreciate your flexibility and understanding and we are pleased to be able to offer you the above options to help you get through this challenging period. Should you have any questions about the options please do not hesitate to email us at ************@**************.*** or contact your Human Resources. We look forward to hearing from you regarding your choice by June 30, 2020.
Yours truly,
Gateway Casinos & Entertainment Limited
Orkut Polat
Assistant General Manager
I, Ardashir Hemmati choose the following Option (check one)
Option 1: extension of Existing Benefits to August 31, 2020, Paid LOA, job continuation.
Option 2: extension of Existing Benefits to August 31, 2020, job continuation.
Signature Ardashir Hemmati Date 29/Jun/ 2020