Debunking At Will Employment in Canada: What You Need to Know

Some people assume that Canadian employers can let an employee go at any time and without notice, like in the U.S. with at-will employment. Under at-will employment, employers can terminate employees without notice or cause, as long as the reason isn’t illegal (such as discrimination).

However, at will employment in Canada does not exist. Canadian employment laws provide stronger protections for employees, ensuring that terminations follow specific legal requirements.

Whether you’re an employer or an employee, understanding the rules around termination is crucial. In this article, we’ll break down how employment law works in Canada, what protections are in place, and what both parties need to know.

What Is At Will Employment?

At-will employment is a legal concept primarily used in the U.S., where employers can end someone’s employment without cause or notice. Employees, in turn, can leave their jobs at any time, without penalty. 

American companies or employers will sometimes try to include terms relating to at will employment in Canadian employment agreements. However, any reference to “At Will Employment” in Canada is misleading, as no such legal framework exists here.

Key Points of At-Will Employment

• No reason needed: Employers can terminate an employee for almost any reason, as long as they don’t violate any specific legal protections (e.g., human rights discrimination or contractual obligations).
• No notice required: Employers aren’t obligated to give advance notice before letting someone go.
• Employees can quit freely: Employees can leave their job whenever they choose, without having to provide notice.

However, this rule does not apply in Canada.

How Canadian Employment Law Is Different

In Canada, employers cannot terminate someone’s employment without cause unless they provide notice or severance. 

• Just Cause: Employers can fire someone without notice or severance pay only if  the employee engages in serious misconduct, including theft, harassment, or bullying.
• Notice or Severance: In the absence of just cause, employees must be given notice, meaning the employer must inform the employee in advance of their termination. The length of notice depends on the terms of the employment agreement and other factors, including how long the employee has worked there. If the employer doesn’t provide notice, they must pay severance instead.

Is At Will Employment Legal in Canada? 

In Canada, at-will employment is not recognized. While U.S. laws allow employers to terminate employees at any time, for almost any reason, Canadian law offers a more predictable and fair process for ending employment.

Legal Requirements for Termination in Canada

In Canada, both federal and provincial laws, such as Alberta’s Employment Standards Code, establish minimum standards for employees’ notice and severance entitlements:

• Notice or Pay: Employers must provide notice or severance pay if they terminate an employee without just cause. The Alberta’s Employment Standards Code outlines the minimum notice or pay the employee is entitled to based on their length of employment.  However, employees may be entitled to more under common law. For more details, refer to our Termination Without Cause  article.
• Just Cause: If an employer terminates an employee for just cause (e.g., serious misconduct or repeated violation of company policies), they must demonstrate that a clear, consistent, and progressive discipline process was followed.

Legal Protections for Employees in Canada 

1. Reasonable Notice or Severance

If an employer decides to terminate an employee without cause, they must either give notice (advance warning) or offer severance pay instead. The length of notice can depend on factors like the employment contract, the employee’s length of service, how specialized the role was, or availability of alternative employment. 

2. Termination for Just Cause

Employers can terminate an employee immediately—without notice or severance—only for serious misconduct. This could include things like theft, violence, or repeated violations of company policies. The employer is required to prove that cause was justified; otherwise, the employee could successfully claim for severance pay. 

3. Protection Against Discrimination

Under human rights laws, employees cannot be dismissed for discriminatory reasons. This includes protected grounds such as race, gender, age, disability, or sexual orientation. Dismissing someone for these reasons is unlawful.

4. Health and Safety Protections

In Canada, employees can refuse unsafe work without worrying about getting fired. It’s illegal for employers to let someone go for refusing to do dangerous tasks. For more details, check out the Occupational Health and Safety Act in Alberta.

Common Misunderstandings About Employment Law in Canada 

Misconception #1: Canada has at-will employment like the U.S. 

As we’ve discussed, Canada does not have at-will employment. In Alberta, while employers can terminate employees without cause, they are required to provide reasonable notice or pay in lieu of notice, as outlined in the Alberta Employment Standards Code.

Misconception #2: Employers can terminate without notice for any reason without legal consequences.

An employer can only terminate an employee without notice or severance if the employee has engaged in some serious misconduct, such as theft or fraud. The employers must follow legal requirements when terminating an employee, or they risk costly consequences from a wrongful dismissal lawsuit. 

Misconception #3: Employees aren’t entitled to severance or notice unless they’ve been with the company for several years.

Under the Alberta Employment Standards Code, employees who have been employed for more than 90 days but less than 2 years are entitled to at least one week’s notice or one week’s pay in lieu of notice. Depending on the specialization of the role and availability of alternative employment, the employee may be entitled to more notice or severance pay under common law. 

Employee Rights and Recourse After Termination

If you’ve been terminated and believe it was unjust, it’s important to get clarity and explore your options. Here’s a simple step-by-step guide on what you can do:

Step 1: Review Your Employment Contract

Take a look at your employment contract to understand the terms of your termination, notice period, and any obligations or rights you have, including severance.

Step 2: Gather Evidence

Collect any relevant documents that may support your case, such as emails, performance reviews, or records of any disciplinary actions. This will help you demonstrate whether the termination followed a fair process.

Step 3: Consult an Employment Lawyer

Speak with an employment lawyer to assess your case and determine what legal options are available to you. A lawyer can help you get clarity and guide you through the process.

Potential Remedies

Depending on the violations committed by your employer, you may be entitled to severance payment, additional damages, or even reinstatement.

How Canadian Courts Handle Termination Cases

When Canadian courts evaluate a termination, they consider the following key factors:

1. Severity of Misconduct (for Cause Terminations)
   Courts assess whether the misconduct justifies immediate termination, especially for serious issues like theft or harassment.
2. Notice or Severance
   Courts check if the employer provided adequate notice or severance pay, depending on the employee’s contract.

If the employer fails to meet these requirements, the termination could be deemed unlawful, and the employer may face consequences.

Employer Responsibilities Under Canadian Law 

Employers in Canada have a number of legal responsibilities when terminating an employee:

1. Notice or Severance: If an employee is terminated without cause, the employer must provide written notice or severance pay, based on the employee’s length of service.
2. Documentation for Cause: If terminating for cause, employers should be able to justify their decision through documentation, including warnings and any disciplinary actions to support the decision.
3. Follow Employment Standards: Employers must comply with provincial employment standards and human rights laws, ensuring terminations are non-discriminatory and lawful.

Why You Should Consult an Employment Lawyer 

Employment law in Canada can be complex and differs by province. If you’re facing termination, consulting with an experienced employment lawyer can help clarify whether your termination was lawful and ensure your rights are protected.

Benefits of Legal Support:

• Clarity: Workplace issues can feel overwhelming and uncertain. We help you make sense of what’s happening by explaining how the law applies to your situation and outlining practical options for moving forward.
• Peace of Mind: We know how stressful employment law matters can be. We approach every case with care, honesty, and respect — so you can feel confident knowing your situation is in good hands.
• Strategy: We help you choose a path forward that aligns with your needs, priorities, and goals, so you can navigate the situation confidently and pursue the right outcome.

Book a consultation with Cashion Legal to understand your rights and next steps.

FAQs