In Alberta, employers can legally terminate an employee without cause, but only if they follow certain rules around notice, pay, and fair treatment. Failing to comply with the Employment Standards Code (ESC) or common law requirements can result in costly wrongful dismissal claims.
Verhaeghe Law’s employment lawyers can help ensure your termination processes meet Alberta’s legal standards and protect your business from liability. To schedule a consultation with a member of our legal team, you can call 587-410-2500 or fill out our online contact form now.
What is Termination Without Cause in Alberta?
Termination without cause occurs when an employer ends employment for reasons unrelated to employee misconduct or performance. For example, restructuring, downsizing, or changes in business needs. While employers have the right to do so, they must ensure that they:
- Provide Reasonable Notice or Pay in Lieu of Notice: Under Alberta’s Employment Standards Code, employees are entitled to minimum notice based on the length of time they have been employed:
- 1 week of notice for 90 days to <2 years
- 2 weeks for 2-4 years
- 4 weeks for 4-6 years
- 5 weeks for 6-8 years
- 6 weeks for 8-10 years
- 8 weeks for 10+ years
However, common law notice often exceeds these minimums. Courts may award several months of pay to an employee who is terminated without cause, depending on their age, role, and years of service. Consulting an employment lawyer before finalizing a termination package will help ensure compliance with the ESC.
- Ensure No Discrimination or Retaliation: Terminations cannot contradict or discredit the Alberta Human Rights Act in any way. Firing an employee due to race, gender, disability, pregnancy, or for exercising a workplace right may result in legal claims.
- Provide Proper Documentation: Employers generally must issue a Record of Employment and provide clear written notice or pay in lieu of notice. A well-drafted termination letter prepared by a lawyer can reduce misunderstandings and potential disputes in the future.
Employer Obligations and Best Practices
Employers who fail to handle termination correctly are put at risk of wrongful dismissal lawsuits, human rights complaints, or harm to their reputation. To minimize risk, employers should:
- Plan Severance Carefully: Offering a fair severance package that considers both statutory minimums and potential common law obligations is critical. A lawyer can calculate what is reasonable to avoid future litigation.
- Document Performance and Business Reasons: Even though employers are not required to give cause, clear records of business rationale can help defend against wrongful dismissal claims.
- Respect Notice Periods and Working Conditions: Terminating employment without proper notice or altering working conditions before termination can lead to constructive dismissal claims. Legal advice ensures compliance with both the ESC and court precedents.
- Communicate Professional and Consistently: Poorly executed terminations–such as dismissing an employee publicly or without explanation–can lead to claims for aggravated damages. Employers should follow a respectful, documented process.
Seeking legal counsel from the start can help employers create policies, draft terminations, and handle negotiations with employees to avoid costly disputes.
Terminating Without Cause in Alberta? Contact Verhaeghe Law Today
Termination without cause is lawful in Alberta, but it requires careful adherence to notice requirements, severance obligations, and human rights protections. Missteps can result in significant legal and financial consequences for employers.
If your business needs to terminate an employee, contact Verhaeghe Law’s employment lawyers today. We can review your obligations, draft compliant termination documents, and ensure your business interests remain fully protected.
To get in touch, call 587-410-2500 or fill out our online contact form now.