What Is Fair Severance Pay in Alberta?

In certain situations, employees who are let go may be entitled to severance pay. This is usually required in lieu of sufficient notice of termination. Under Alberta labour law, workers who have been at their jobs for more than three months (the customary probationary period) are generally entitled to some form of severance.

Eligibility for severance

Eligibility for severance and amounts of severance pay may be influenced by a variety of factors:

  • Cause of termination
  • Length of time you were employed
  • Employment insurance coverage
  • Your age
  • The nature of the work
  • How long you were unemployed
  • The manner in which you were dismissed

There are also a variety of exceptions to the general rules regarding severance. For example, certain types of workers or positions, such as construction or seasonal workers, aren’t entitled to termination notice (and thereby severance pay). Temporary layoffs have their own set of rules as well.

Fair severance calculations

The question is, how much pay is fair severance for your work, given the length of time you have worked, the type of work you do, the pay scale and benefits offered and the likelihood of finding new employment?

All these considerations should be part of the severance pay calculation. Generally, employees are entitled to all their wages, overtime pay, general holiday pay and vacation pay within three days of your last day of work.

However, very few employees are entitled to only the minimum provided under legislation. You may be entitled to more than you expect. Commissions, bonuses, profit shares, benefits and the loss of pension benefits may also be part of the calculation of damages. Expert employment law advice has the potential to better your position by thousands of dollars.

Make sure you’re getting a fair severance package. Call us today!

If you live in the greater Edmonton area and feel you were dismissed without proper severance, contact the Lypkie Henderson Employment Law office to arrange a consultation.