Whether you’re an employee who has recently lost a job or an employer preparing to end an employment relationship, termination can be stressful and raise many questions.
If you are a non-unionized employee or employer operating under Alberta’s provincial employment standards, the following may help you understand what typically happens when a termination occurs and what constitutes wrongful dismissal.
1. Termination Is Permitted, but Certain Requirements Apply
When terminating an employee, employers are expected to follow the rules set out in the Alberta Employment Standards Code.
There are generally two types of termination in Alberta: 1) Termination for just cause; and 2) Termination without cause.
An employer can generally terminate an employee for just cause where there has been serious misconduct and termination is the only proportionate response to the misconduct. The employer must provide a clear reason in writing for the just cause termination and, if done properly, no notice or payment in lieu of notice is required. Allegations of “just cause” usually require a high level of proof, and decisions in this area can be complex.
Alternatively, if terminating an employee without cause, employers can end employment at almost any time, and without disclosing any reason, as long as they provide a written termination notice with the proper notice or pay in lieu of notice (or combination of the two).
Improperly alleging “just cause” or failing to provide the proper amount of notice or pay in lieu of notice (or combination of the two) is generally considered wrongful dismissal.
The amount of notice required to avoid wrongful dismissal depends on the wording of the employment contract, the Employment Standards Code, and common law principles.
2. Minimum Standards For Notice Are Not the Whole Picture
The Employment Standards Code sets out minimum notice or pay in lieu of notice. At the time of writing this article, those minimum standards were:
| Length of Service | Minimum Notice / Pay in Lieu |
| 90 days to 2 years | 1 week |
| 2 to 4 years | 2 weeks |
| 4 to 6 years | 4 weeks |
| 6 to 8 years | 5 weeks |
| 8 to 10 years | 6 weeks |
| 10+ years | 8 weeks |
These are minimums only.
Many terminations involve consideration of additional factors beyond the statutory minimums, such as the employee’s age, length of service, position, and the availability of similar work. These factors can influence the amount of notice that an employee or employer may expect during termination discussions, and notice can be significantly greater than the minimum standards.
The terms of the employee’s contract may also affect the amount of termination notice needed, but can’t make the required notice lower than the amounts outlined in Employment Standards Code.
3. Consider Reviewing Any Termination Package Before Signing
Employees are sometimes asked to sign a termination letter or release at the same time they are let go.
For Employees:
Signing a release usually means you are agreeing not to pursue anything further related to your employment. Some people prefer to review these documents calmly or seek outside input before signing, especially if the situation was unexpected.
For Employers:
Having clear, well-drafted documents can help avoid misunderstandings during the termination process.
4. Compensation Can Involve More Than Base Salary
Severance discussions may involve more than base pay alone. Depending on the terms of employment, items that sometimes come up include:
- Benefits coverage during the notice period
- Whether bonuses or commissions would have been earned
- Pension or RRSP contributions tied to employment
These components can influence the overall value of a termination package.
5. Employees Are Expected to Look for New Work
After a termination, employees are generally expected to make reasonable efforts to seek new employment. Failing to do so can reduce the employee’s entitlement to notice or pay in lieu.
Since the purpose of termination notice or pay in lieu is to provide a reasonable opportunity for the employee to find other employment, the employee taking a new job over the reasonable notice period can also reduce their entitlement to notice or pay in lieu from the previous employer.
For Employees:
The duty to make reasonable efforts to seek new employment doesn’t necessarily mean taking the first job available, but keeping records of your job search can be useful.
For Employers:
Whether an employee is actively seeking work can sometimes play a role in discussions around compensation.
6. When People Often Seek Guidance
Employees and employers commonly look for guidance when:
- They want to better understand notice or severance entitlements
- They are unsure if a termination was handled appropriately
- They need help reviewing or preparing termination documents
- They are trying to resolve a disagreement about compensation
Speaking with someone knowledgeable in employment matters can help clarify options and reduce uncertainty.
Termination is a significant event for both employees and employers, and Alberta’s rules create certain expectations around notice, pay in lieu, and how compensation is structured. Taking time to review documents, understand the circumstances, gather information, and getting advice from a lawyer can help make the process more manageable for everyone involved.
Disclaimer: This article provides general information at the time of writing only and applies to provincially regulated, non-unionized employment in Alberta. It does not contain legal advice. Everyone’s situation is unique, and individuals should seek advice tailored to their specific circumstances if needed.
