Losing your job is stressful. When it happens without warning or fair compensation, it can feel overwhelming. In Alberta, most employees have legal rights when dismissed. The package an employer first offers is often not the full picture of what you may be entitled to. This post explains what wrongful dismissal means in Alberta and what you can do if you believe your termination was not handled properly.
What Is Wrongful Dismissal?
In Alberta, employers can generally terminate employment without cause, provided they comply with their legal obligations. In most wrongful dismissal claims, the issue is not whether the employer could terminate the employee, but whether the employee received proper notice of termination or adequate compensation in lieu of notice.
Most employees without a fixed-term contract are entitled to reasonable notice when their employment ends. If they do not receive that notice, or equivalent pay, they may have a claim for wrongful dismissal.
This post focuses on common law wrongful dismissal for provincially regulated employees in Alberta, as approximately 90% of Alberta’s workforce falls under provincial employment legislation. Employees working in federally regulated industries, such as banking, telecommunications, or interprovincial transportation, may have additional rights under the Canada Labour Code, including unjust dismissal protections.
Just Cause vs. Without Cause Termination
Termination for Just Cause
An employer can dismiss an employee without notice and without severance if they can establish just cause. This typically involves serious misconduct, such as dishonesty, theft, significant insubordination, or a documented pattern of behaviour that was not corrected despite warnings.
Just cause is a high bar. Courts generally do not consider poor performance, a single minor error, or a general personality conflict to be sufficient reasons. Employers who allege just cause and cannot substantiate it may face a larger wrongful dismissal claim than if they had proceeded with a without-cause termination in the first place.
Termination Without Cause
This is the more common scenario. The employer does not need to provide a reason for ending the employment relationship, but must provide the employee with reasonable notice or pay in lieu of notice. This is where many disputes arise.
The Alberta Employment Standards Code sets minimum termination notice periods based on the employee’s length of service. These minimums are a floor, not a ceiling. At common law, employees may be entitled to significantly more depending on the circumstances. Generally, no notice is required for employment of 90 days or less.
Employment Contracts and Termination Clauses
In some cases, an enforceable employment contract may limit an employee’s entitlement on termination to the minimum standards under the Alberta Employment Standards Code or another specified amount. However, improperly drafted termination clauses may be unenforceable, in which case common law reasonable notice may still apply.
Whether a termination clause is enforceable depends on the wording of the contract and the surrounding circumstances. Employees should not assume that a contractual severance provision is automatically valid.
What Is Constructive Dismissal?
Sometimes an employer does not terminate you outright. Instead, they may make the working environment so difficult, or so fundamentally change your role, that you feel you have no real choice but to resign. In law, this is called constructive dismissal, and it can give you the same rights as if you had been formally terminated.
Common examples include a significant reduction in pay or hours, a demotion, persistent harassment, toxicity, or hostile treatment, or a unilateral change to a key term of your employment contract. If you have left your job because of changes like these, speak with a lawyer before concluding you have no claim.
What Wrongful Dismissal in Alberta May Entitle You To
Depending on your circumstances, you may be entitled to working notice, meaning you continue to work and receive your regular pay during the notice period. Alternatively, you may receive pay in lieu of notice through a lump sum payment or salary continuation.
Many employees are also entitled to continuation of benefits during the notice period. Depending on the terms of the employment contract and compensation structure, damages may also include bonuses, commissions, stock options, or other forms of incentive compensation that would have been earned during the notice period.
In rare cases where an employer has acted in bad faith during the dismissal process, aggravated or punitive damages may apply.
Pay in lieu of notice is generally treated as employment income and is taxable. If you receive a lump sum severance payment, understand the tax implications before accepting it. A financial advisor can provide guidance specific to your situation.
What Factors Determine Reasonable Notice?
Beyond the statutory minimums, courts apply a framework established in Bardal v. Globe and Mail Ltd. to assess how much notice is reasonable in the circumstances.
Length of service is an important factor: the longer you worked for an employer, the more notice may be owed. Age also matters, as older employees who may face greater difficulty finding comparable work may be entitled to longer notice periods. The nature of the employee’s role and the availability of comparable employment are also relevant considerations.
Courts may additionally consider broader surrounding or extenuating circumstances that affect an employee’s ability to secure comparable employment. For example, inducement from secure prior employment, specialized industry experience, economic downturns, or personal circumstances affecting employability may influence what constitutes reasonable notice in a particular case.
These factors can interact significantly. For example, a 55-year-old employee with 18 years of service and specialized experience may be entitled to substantially more notice than the statutory minimums, particularly where comparable employment opportunities are limited. The outcome in any specific case depends on the full circumstances.
What to Do If You Think You Were Wrongfully Dismissed
If you have recently been let go and are unsure whether you were treated fairly, there are several practical steps worth considering.
Do not sign a release or severance agreement without first obtaining legal advice. Once you sign a release, you may give up your right to pursue additional claims. You should also document everything: keep records of dates, conversations, emails, performance reviews, and anything you received in writing from your employer.
Be aware of your duty to mitigate. You are generally required to take reasonable steps to find new employment, and failing to do so can reduce the damages you may recover.
Finally, act promptly. Limitation periods apply, and in Alberta a wrongful dismissal claim must generally be brought within two years of the date of dismissal under the Limitations Act.
Frequently Asked Questions
What is the difference between wrongful dismissal and unjust dismissal?
Wrongful dismissal is a common law concept that applies to most provincially regulated employees in Alberta. It generally means an employee was terminated without adequate notice or pay in lieu of notice.
Unjust dismissal is a separate remedy available under the Canada Labour Code to many federally regulated employees who have worked for the same employer for at least one year. It allows employees to challenge whether the termination itself was justified, not just whether proper notice was provided.
If you are unsure which applies to your situation, a lawyer can help determine which legal framework governs your employment.
My employer offered me a severance package. Should I accept it?
Not necessarily, and not before understanding what you may actually be entitled to. Many initial severance offers reflect only the statutory minimums under the Alberta Employment Standards Code, which may be substantially lower than common law reasonable notice entitlements.
Once you sign a release, you generally cannot later pursue additional compensation. Speaking with a lawyer before signing is often worthwhile, particularly if you held a senior role, had lengthy service, or worked in a specialized field.
What are the minimum notice periods in Alberta?
Under the Alberta Employment Standards Code, the minimum notice period ranges from one week for employees with more than 90 days but less than two years of service, up to eight weeks for employees with ten or more years of service.
These are legislative minimums only. Your common law entitlement may be significantly greater depending on your age, position, years of service, and the availability of comparable work.
Does it matter how long I worked there?
Yes. Length of service is one of the most important factors in determining both statutory notice and common law reasonable notice entitlements. However, it is not the only factor. Age, compensation level, specialization, and labour market conditions may also influence the notice period.
Even relatively short periods of employment can give rise to meaningful claims in the appropriate circumstances.
Can I sue my employer if I was laid off?
It depends on the circumstances. In Alberta, a temporary layoff that exceeds 90 days within a 120-day period may become a termination under the Alberta Employment Standards Code, potentially triggering termination pay obligations.
Courts have also recognized that even a properly structured temporary layoff may amount to constructive dismissal if the employment contract does not permit layoffs. If you were laid off and are unsure of your rights, speaking with a lawyer can help clarify your options.
Speak with a Calgary Employment Lawyer
Laws & Beyond assists clients throughout Calgary and Alberta with wrongful dismissal claims, severance negotiations, constructive dismissal matters, and related workplace disputes.
If you have recently been terminated and are uncertain about your rights or the adequacy of the severance package offered to you, obtaining legal advice early can make a meaningful difference.
To schedule a consultation, contact Laws & Beyond at 403-300-5297 or info@lawsnbeyond.com.
Consultations are paid consultations, and up to 30 minutes of the consultation fee is credited back if the firm is retained on the same day.
This article is provided for general informational purposes only and does not constitute legal advice. Employment law outcomes depend on the specific facts of each case.
