Employer Advice on Terminating Employees

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What Alberta employers should know about terminations

When terminating an employee, it is critical that employers are compliant with the rules laid down in the Alberta Employment Standards Code (ESC). Employers in Alberta are required to provide the appropriate amount of termination notice (in writing) or pay in-lieu of notice when ending an employment relationship. Carrying out terminations correctly will help your business avoid illegal or wrongful dismissal claims.

What are the two types of terminations in Alberta?

As in the rest of Canada, terminations in Alberta are of two kinds:

Terminations with cause

In with-cause terminations, an employee is dismissed for an act of serious workplace misconduct, such as theft, violence, fraud, sexual harassment. Employers are not required to provide termination notice or pay in lieu of notice in cases of terminations with cause.

Termination without cause

This type of termination is for any reason other than serious workplace misconduct. The employer is not required to provide a reason for terminating the employee. But the employer must provide a written termination notice or pay in-lieu of notice in accordance with the Alberta ESC.

What are the rules on termination notice in Alberta?

The amount of termination notice due to an employee depends on their length of employment. If an employee has worked for an employer for less than 90 days, no termination notice is required.

If the employee has completed three months of continuous service with the same employer, they are entitled to a written notice of termination, or pay in lieu of notice.

The minimum termination notice requirements under the Alberta ESC are:

More than 90 days but less than 2 years – 1 week’s notice
2 years but less than 4 years - 2 weeks’ notice
4 years but less than 6 years: 4 weeks’ notice
6 years but less than 8 years: 5 weeks’ notice
8 years but less than 10 years: 6 weeks’ notice
10 years or more: 8 weeks’ notice

Is termination pay mandatory in Alberta?

Employers wishing to speed up the termination may not want the employee to serve their notice period. Under the Alberta ESC, if they do not provide notice, employers can provide termination pay in-lieu of notice instead. Employers must ensure that the termination pay is equal to the wages the employee would have made while serving their termination period.

If they wish to, employers can also offer a combination of the termination notice and pay in-lieu of notice.

Have questions about terminations in Alberta? Ask our experts

When terminating an employee, it’s important that you are compliant with your provincial employment standards to avoid wrongful dismissal claims. If you have questions on terminations, or any other employment matter, we’re here to help.

Call us today at (1) 833-710-0677.

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