Employment Contract Termination

• The parties to an employment contract can negotiate standards that are more beneficial than employment standards legislation, but cannot agree to less generous terms.
• Under employment standards legislation, employees are entitled to a minimum amount of notice of termination or termination pay, unless terminated for "just cause" or within statutory exceptions
• Any dismissal must proceed on a without-cause basis unless the employee fundamentally breached the contract terms

Statutory Notice Requirements

• Requirements are minimums, common law imposes higher obligations if the contract is silent on notice
• The employment contract is first place to look for notice requirements between employee and employer
• Employer has implied duty to provide reasonable notice, or pay in lieu, under common law if no provision governs notice of termination, or if provision is unenforceable
• What is reasonable depends on the case facts, courts consider many factors to determine the notice period length
• Reasonable notice standard under common law exists in addition to, and significantly exceeds statutory standards

Purpose of Termination Notice

• To allow employee time, while still being paid, to look for another job, where employer lacks just cause to terminate

Statutory vs Common Law Obligation

• Statutory termination requirements are modest when compared to common law obligations for reasonable notice
• Middle manager with 20 years of service is entitled to 8 weeks' notice/pay under Alberta's Employment Standards Code (ESC) and British Columbia's Employment Standards Act (ESA)
• Courts would likely award manager between 12-20 months of "reasonable notice"
• Employees who feel the employer failed to offer acceptable separation package would sue for wrongful dismissal rather than file claim under ESC/ESA
• Entry-level employees laid off after two years of service are entitled to two weeks notice or pay, per employment standards legislation.
• Employees will probably seek to enforce statutory rights by filing a claim, and it is unlikely they'd hire a lawyer
• Employees can file a claim in small claims court at lower cost for few more weeks' pay in lieu of reasonable notice

Employee Dismissal - Extremes

• Relatively senior employees or those with many years of service with an employer are the ones that go to court to assert right to reasonable notice under common law
• It has become common for employees to reject employer's initial severance offer (offer to provide pay in lieu of termination notice), often with lawyer
• Threaten to initiate legal action if additional severance isn't provided, and often parties subsequently engage in negotiations and reach a compromise to avoid litigation

Statutory Compensation Requirements - Alberta

• An employer must provide between one and eight weeks' written notice of termination (or pay in lieu) when dismissing employees employed > 3 months, under section 56 of the ESC
• Notice period depends on employee's service length, with exceptions limited

Statutory Compensation Requirements - British Columbia

• Under section 63 of the ESA, an employer is not required to give notice, but must pay employees >3 months "compensation for length of service," unless employer provides comparable notice, or dismissal is for just cause / employee quits or retires

Termination Options

• Advanced notice of termination and employee work throughout notice period (“working notice")
• Under ESC, offer wages in lieu of notice in Alberta
• Under ESA, offer compensation for length of service (CLOS)
• Combination of notice and pay in lieu or CLOS
• "Working notice" is commonly given when employers dismiss many employees at once for economic reasons.
• When dismissing individually, employers usually pay in lieu of notice

Statutory Terms of Exit - Alberta

• Employees must provide written termination notice: one week if employed >3 months and <2 years
• Employees employed >= 2 years must give two weeks notice
• There are a number of exceptions to this requirement: custom/practice in industry respecting notice of termination that is contrary to requirements, employee's health/safety in danger, unforeseeable/unpreventable circumstances beyond the employee's control make continuation of work impossible.
• The followong terms also apply; employee has been temporarily laid off, employee is not provided with work by employer by reason of stroke/lockout, employee is employed on casual basis and has opportunity to accept/decline temporary work requested by the employer, employee's wage rate, overtime-rate, or holiday/vacation pay has been reduced.
• When employees in Alberta provide equivalent notice of termination required under ESC, employer can expedite by paying employee for remaining notice period under section 59
• ESC Section 61, wages, wage rates, or any other employment term/condition cannot be reduced by employer following notice of termination by either party
• British Columbia ESA Section 67(2), notice by an employer may not alter employee’s wage rate/other employment condition without written consent

Temporary Layoffs Explained

• Under section 62 of Alberta’s ESC, employer wishing to maintain employment relationship and may temporarily lay off employee
• ESC Section 63, if layoffs last for >= 90 days during the 120-day period, layoff isn't temporary & employer is considered to have terminated the employee and must provide statutory termination pay
• Time may be extended under applicable bargaining agreement or employer/employee agreement, via regular pension/employee benefit payments/contributions.
• The common thread is that employer can have longer layoffs before termination provisions via continuing commitment to job.
• BC has sections 1, 62–63, and 65 of the ESA. treats temporary layoffs more narrowly than Alberta’s ESC, and there is no general right of an employer to temporarily lay off an employee

Temporary Layoffs – Special Terms

• An employer may temporarily lay off an employee only if the employment contract specifically provides for it
• Temporary layoffs must have employee agreement in specific instance, or where temporary layoffs are standard practice in the employer’s industry
• ESA Section 1 Defines layoffs under agreement going beyond date on which employee has recall right or for employees laid off for =<13 weeks in a period of 20 weeks
• In BC, layoff isn't limited to full layoff. If employee earns <50% of regular wages during week, ESA section 62 deems week a "week of layoff”
• ESA section 63 CLOS and section 64 group-termination notice apply only to terminated employees, not employees during a legitimate temporary layoff

Temporary Layoffs and Termination – Important Points

• ESA Section 63(5), layoffs exceeding limit of 13 weeks in a 20-week period are actually a termination, based on section 1, with termination date being the layoff start, compensation rules apply
• ESA Section 65 also deals with temporary workers, seasonal industries, and other employment arrangements in which work hours are not usually regular or continuous throughout year
• Specifies that compensation and notice provisions in sections 63 and 64 are not applied in such situations

Employee Status

• ESC Alberta, ESA BC, address consequences of employer status change on employee length of service
• ESC section 5: when business, undertaking/activity (or portion) is sold/leased/transferred/merged /continues operating under receiver/receiver-manager, continued employment is deemed continuous and uninterrupted
• ESA Section 97 has is similar provision

Ownership Changes

• Employees who continue to work for new business owner of former employer will retain rights and length of service as if no sale/transfer occurred
• Seller Company has no statutory obligation to provide termination notice / pay in lieu / CLOS at time of the sale, employee is not entitled to termination notice on basis of nine years' service

Gaps in Employment

• This does not apply if there’s employment gap. In Alberta, gap must be >3 months
• Employment after rehiring is only taken into account in Alberta if individual resigns for 3 years then is remired
• BC does not have a similar three-month rule. Gaps, however, due to temporary layoff or unpaid leave do not affect length of service

Termination Notice Factors

• Requires to be written, addressed to employee, and delivered: in person/mail/fax/email as long as delivery is proven
• Posting notice on bulletin board is insufficient in Alberta
• British Columbia has group termination requirements via section 64 of the ESA where notices are to each of labor union, the minister of employement stating the reason for the termination and specifying employee terminations, effective date of termination and if applicable, to each employee,

Working Notice Terms

• Rather than pay, Alberta's working notice or BC’s working notice or CLOS requires during the notice period following from the employer
• Employer cannot cut wage rate / alter related terms condition of job
• Employee is entitled to wages, no less than regular pay amount. The wage should be the average earned in 13 weeks immediately before notice if non irregular employee amount
• The Alberta ESC determines minimum notice requirement.
• BC's ESA taken different approach since 1995 by generally not requiring employers to give notice, rather mandating “Compensation for Length of Service” (CLOS) payments

Notices and Clos Requirements

• To qualify to give notice under Alberta and BC regulations there must be a legal reason and the duty to do so is removed if the employer meets certain notice requirements
• Regimes may look quite similar and there is not a common law of payment in lieu of notice; It is a form of “deferred compensation”
• In both Alberta and BC, the employee is terminated, triggered when employer dismisses/stops/lays employee off for exceeds applicable statute or due to constructively dismissing where employment resign in set amount after

Alberta - Notice Requirements

• Requirements related to termination notice/payment in lieu are Sections 54 to 64. Ranging across length of service, the amount is between one-eight weeks
• Employer may combine termination pay/written notice or use payment in lieu
• Statute requires employers to provide periods to employee unless falling within the below
• Periods for employer initated terminatons

Required Minimun Time Period and Corresponding Emploment Period - Alberta

• Nil-less then 3months
• 1 week- but less than a year
• 2 weeks- But less than 4 years
• 4 weeks- But less then 6 years
• 5 weeks- But Less then 8 years
• 8 weeks- 10+ years but Less then 10 Years
• Pay Employee benefits until period including situation where there receives termination pay instead of working during notice period/part of that period

Calculate Termination Pay - Alberta

• Caitline earns 700 by working 35 hours. After 6 yeras of employment with work about to terminate, to know how much she is entitled ( with 6-8 years employed being 5 months time).
• Employer must choose whether to give weeks and make individual work , ask to leave, or pay for the entire five weeks

Notice, Clos and Pay - Key Info about British Columbia

• Sections 63-64 regarding termination. It Applies employees due to employer termination
• Provide closing payments for years worked following schedule. For every requirement, different terms in the following way are met
• Less that 3 Month with no Clos
• 1 weeks pay 3 months Less then a year
• 2 weeks pay Between 1 and 3 years
• 3 weeks pay 3 and 4 Years
• 4 weeks pay 4 and 5 Years
• 5 weeks pay b/w 5 and 6 years
• 6 weeks pay b/w 6-7
• 7 Weeks pay B/w 7-8 and
• 8 or more Weeks

Calculations and Responsibilities

• Pay based on regular wage. Excluding overtime
• The body which setteles the disputes for closing.
• The BC employment standards require a standard set. Can provide a written working period. With written perios matches amount that needs, no closing provides
• An also provide of weeks needed then provide the amount for partial amount
• Employers do not want to use (Give instead) if does not work

British Columbia – Employer Requirements

• Give Notice rather then Pay and must pay on notice and wage on back period must occur within 48 Hours of Termination -6 days and period

British Common law (Notice)

• Both minimum set is different amount branch
• Can have two options: severance required under both employment (payment) for wage after

Damages & Common law - British term

• They can not be completely paid due, both parties
• Double recover can be part of the figure with the combined into one

Particular Employee and Payment

• Be mindful of 8 weeks writing with pay during 64
• Week time the employe and give week with closures the notice time or give 13 to weeks that all factors are covered
• the minimum must be assessed what constitutes the the employment relationship of the two
• A higher be there that or the or the provision be there amount due
• List factors
• Age employment compensation

Damages

• In summary there are three types depending on facts of where to allocate

Alberta - In Detail

• that moral must be set and used as is what the points are

Proportionality

• to there there be

Dismissal (Bad faith)

• There are is required for damages suffered by this

Negativity

• This means harming there with it as disabilities it comes to

The Duty to Mitigate Damages

Alberta or others states those not apply, as well a to limit for the others to be

• Pay the damages to see
• Attributes are to be base on what is reasonable
• No contact as in this case as in the with it to Employees are not expected to stay at the same position. A job is considered suitable due to factors but its to take care there not stay at this

Final Analysis

• Be there is to make with the best of the facts or is more then 2 year. Also be to get paid too and to end to it all