12.01       A regular employee shall be entitled to separation pay as set out in Sub-section 12.03, provided he has not been excluded by Sub-section 12.02 and provided he meets any of the following eligibility provisions:

1. if he is terminated for a reason other than set out in Sub-section 12.02;
   
   
2. if he is laid off and on any date during his layoff the hours scheduled for him during the previous twelve [12] consecutive months were less than fifty percent [50%] of normal full time hours, provided he is not eligible for any Company or Government pension or for benefits under the Company's insured Weekly Indemnity or Long Term Disability Plans;
   
   
3. in special cases where a laid off employee appears to have little prospect of recall to regular work within a period of six months, he may request immediate termination and separation pay, and with the concurrence of the Company and the Union this may be granted notwithstanding the eligibility clause [b] above;
   
   
4. if he is ultimately designated for indefinite lay off as a result of a major technological change as provided in Section 12.02;
   
   

An employee eligible for a separation payment hereunder must apply for it not later than six months after he first becomes eligible therefore, otherwise his right to such payment shall be cancelled.

Notwithstanding the above, if the Company permanently discontinues an operation, an employee laid off as a result thereof must apply for and shall receive any separation pay to which he is entitled to without waiting the six month's period.

12.02       Notwithstanding Sub-section 12.01, an employee shall be excluded from separation pay eligibility if;

1. he quits;
   
   
2. he is terminated for just cause;
   
   
3. he is terminated under Section 3.06 of this Collective Agreement;
   
   
4. he has been terminated because of specific direction or decree from any Government authority which has the effect of curtailing any of the Company's operations, unless:
   
   
   1. the direction or decree is the result of an illegal act committed by the Company or one of its representatives, or
      
      
   2. the direction or decree purports to change the method of beer retailing within the Province;
      
      
5. he has been laid off because of any act of war or the hostile act of any foreign power or by any act of sabotage or insurrection or by any act of God;
   
   
6. he is laid off and has arranged with the Company to take leave of absence without pay for a specific period in lieu of his layoff;
   
   
7. he is in receipt of income replacement benefits under the Weekly Indemnity or Long Term Disability Plans or the Workers' Compensation Act;
   
   
8. he is entitled to receive any pension under the Company or Government Pension Plan.
   
   

12.03       The amount of the separation payment of an eligible employee shall be equal to one week's base earnings [computed on the basis of his hourly rate in effect as of time of layoff] multiplied by the number of his completed years of service as of the last day he actively worked in the Bargaining Unit, two weeks in the event of closure.

12.04       If an employee applies for and accepts a separation payment hereunder, his employment is terminated and his seniority and other rights under the Collective Bargaining Agreement are cancelled.