If you were affected by the Ovintiv layoffs this week, you are not alone. Ovintiv is carrying out significant workforce reductions at its Calgary office, and many employees are now navigating severance packages, releases, and a lot of uncertainty about what comes next.
Before you sign anything, accept any offer, or simply move on, there are important legal steps you should take. This post is written specifically for Alberta-based Ovintiv employees. It covers your key legal rights, what your compensation package should actually include, and what to do to protect yourself.
If you’re looking for advice regarding your severance package from Ovintiv, connect with a Calgary employment lawyer at Cashion Legal today to book a consultation.
Table of Contents
Your Severance Package Is Not Necessarily Final
The termination package Ovintiv has presented to you is an offer, not a final determination of what you are owed. In Alberta, many non-unionized employees are entitled to reasonable notice of termination, or pay in lieu of that notice. The amount you are entitled to depends on several factors:
- Your length of service with Ovintiv
- Your age
- The nature and seniority of your role
- Your prospects for finding comparable employment in the energy sector
Alberta’s Employment Standards Code sets out minimum notice and termination pay requirements based on length of service. But for most employees, and particularly for those in professional or managerial roles at a company like Ovintiv, entitlements under the common law are considerably higher than those minimums.
The package may look reasonable on its face. It may even be accompanied by language suggesting it is generous. That does not mean it reflects your full legal entitlement.
What Your Termination Package Should Actually Cover
For Ovintiv employees, compensation typically goes well beyond base salary. Proper severance pay to account for the full value of what you would have earned during your reasonable notice period. That includes:
Annual Bonus
If you would have earned a bonus during the notice period, you are generally entitled to that amount or a prorated equivalent. The fact that your employment ended before a bonus payment date does not automatically mean you forfeit it. Courts have consistently held that bonus entitlements can form part of a wrongful dismissal damages claim, depending on the terms of the plan and the circumstances of your termination.
Long-Term Incentives (RSUs and PSUs)
Ovintiv uses long-term incentive compensation including Restricted Share Units (RSUs) and Performance Share Units (PSUs). What happens to these awards on termination depends on both the plan terms and your legal entitlements. Many LTI plans contain clauses that purport to cancel unvested units upon termination. However, Alberta courts have found in a number of cases that employees can be entitled to compensation for LTI awards that would have vested during the reasonable notice period, regardless of what the plan documents say. This is a particularly important area to review with a lawyer.
Pension
If you are a member of Ovintiv’s pension plan, your entitlements on termination, including vesting status, commuted value options, and continued accrual during a notice period, are worth understanding before you finalize anything. Pension entitlements can represent significant value, and decisions made at the time of termination can have long-term financial consequences.
Employee Share Purchase Plan (ESPP)
If you participated in Ovintiv’s Employee Share Purchase Plan, you should confirm what happens to your account balance, any employer matching contributions, and whether there are any holdback or vesting periods that are triggered by termination. These entitlements are often overlooked but can add meaningful value to what you are owed.
The point is this: your total compensation package at Ovintiv was likely made up of several components. Your termination entitlements should reflect that full picture, not just your base salary.
Read this article to lean more about how severance pay is calculated in Alberta.
Do Not Sign the Release Until You Understand It
Along with your termination package, Ovintiv will ask you to sign a release. This is a legal contract. By signing it, you are permanently giving up your right to pursue any future legal claim arising from your employment or termination.
A few things to know:
- You are not required to sign immediately. You have time to seek legal advice before you respond.
- Signing under pressure, or before you understand what you are waiving, can permanently eliminate rights you did not know you had.
- The release typically covers not just severance, but all potential claims, including human rights claims, constructive dismissal, and anything related to your time at Ovintiv.
Do not let urgency, social pressure, or a desire to put this behind you push you into signing before you are ready.
Common Mistakes Ovintiv Employees Should Avoid Right Now
- Signing the release on the same day you receive it, without independent legal review
- Accepting the package and assuming it is final
- Failing to keep copies of your employment contract, offer letter, LTI plan documents, and recent pay stubs
Your Duty to Mitigate: What It Means and What It Does Not Mean
If you are negotiating your Ovintiv termination package or considering a wrongful dismissal claim, you will likely hear about your duty to mitigate. It is worth understanding what this obligation actually requires of you.
In Alberta, a terminated employee has a legal duty to take reasonable steps to find comparable new employment. If you do not, a court can reduce the damages you are awarded to reflect what you could have earned had you searched reasonably. You do not lose your claim entirely, but your recovery can be significantly reduced.
Conversely, if you do take reasonable steps and find new work, any income you earn in a new comparable role during the notice period will generally be deducted from what Ovintiv owes you. The sooner you land comparable work, the less you may ultimately recover. This is why understanding the full value of your entitlements upfront is important to assessing your severance package.
A few important points that employees often get wrong:
- You are not required to take just any job. The duty to mitigate requires you to pursue comparable employment, meaning work that is reasonably similar in terms of role, responsibility, compensation, and seniority. If you were a senior engineer, finance professional, or manager at Ovintiv, you are not expected to accept a position that is substantially beneath your qualifications or significantly lower in pay simply to reduce Ovintiv’s liability.
- Mitigation cuts both ways. If you make genuine efforts to find work and cannot, that actually supports your claim. Courts look at the reasonableness of your efforts, not just whether you succeeded. Given current conditions in the Calgary energy sector, finding a role comparable to your position at Ovintiv may not happen quickly, and that context matters.
- Your job search conduct matters from day one. From the date Ovintiv terminated your employment, keep a record of positions you apply for, interviews you attend, and any offers you receive or decline. This documentation can be important if your entitlements are ever disputed.
What You Should Do Next
- Gather your documents: employment contract, offer letter, LTI plan agreements, pension statements, ESPP records, and any correspondence related to the termination
- Do not sign the release until you have spoken with an employment lawyer
- Apply for Employment Insurance promptly, as delays can affect your benefits
- Get legal advice before you negotiate, respond to Ovintiv, or accept any final offer
- Document any job search efforts you make
Talk to an Alberta Employment Lawyer Before You Decide Anything
At Cashion Legal, we practice in Alberta employment law and we act for employees in exactly these situations. If you were affected by the Ovintiv layoffs, we can review your termination package, explain what you are actually entitled to, and help you decide whether the offer on the table is fair.
Book a consultation with our firm to get clear, honest answers about where you stand, so you can make an informed decision rather than a pressured one.
Book your consultation at cashionlegal.com
How long do I have to accept or reject Ovintiv’s severance offer?
Ovintiv may suggest a deadline, but there is no fixed legal rule that says you must respond within a specific number of days. What matters is that you act reasonably and do not sit on the offer indefinitely. In practice, taking two to four weeks to obtain legal advice and respond is generally considered reasonable. Do not let an artificially tight deadline pressure you into signing before you are ready.
Can I negotiate my severance package with Ovintiv?
Yes. Severance offers are routinely negotiated, and many employees receive improved packages after pushing back, particularly when they have obtained legal advice. Ovintiv’s initial offer is a starting point. The fact that you were part of a mass layoff does not mean the offer is fixed or that negotiation is unusual. Most employment disputes are resolved without litigation.
What if I already signed the release?
In most cases, once you have signed a release, you have given up your right to pursue further claims. There are narrow circumstances in which a release can be challenged, such as if you were misled about its contents, signed under duress, or lacked the capacity to understand what you were signing. If you signed recently and have concerns, speak with a lawyer as soon as possible to understand whether any options remain.
Does it matter that I was part of a mass layoff rather than terminated individually?
No. Your individual legal entitlements do not change because Ovintiv terminated a large number of employees at the same time. Your reasonable notice period, your compensation entitlements, and your right to negotiate are all determined by your personal circumstances, not by how many other employees were let go alongside you. A mass layoff is not a legal shield for an inadequate severance offer.
Do I get one month per year of service?
This is one of the most common misconceptions in employment law. There is no rule in Alberta that entitles you to one month of severance for every year you worked. That figure is a rough rule of thumb that gets repeated often, but it has no basis in law and courts do not apply it.
How is my reasonable notice period calculated?
There is no fixed formula. Alberta courts consider a combination of factors, most commonly your length of service, your age, the character and seniority of your role, and your prospects for finding comparable employment. These factors were established in a foundational Canadian case and have been applied consistently ever since. For a senior professional with significant tenure at Ovintiv, the reasonable notice period can be substantially longer than what the Employment Standards Code requires as a minimum.
How much does it cost to get legal advice about my Ovintiv termination?
At Cashion Legal, we offer an initial consultation for $375 plus GST. That session gives you a clear picture of what you are entitled to, whether the offer you have received is reasonable, and what your options are. Many employment matters are resolved through negotiation without the need for ongoing litigation, and understanding your position early puts you in the best position to make informed decisions.
Do I have to go to court to get what I am owed?
Not necessarily. The majority of wrongful dismissal and severance disputes in Alberta are resolved through negotiation, without ever going to court. Having a lawyer review your package and engage with Ovintiv on your behalf is often enough to produce a significantly improved result. Litigation is always an option if a fair resolution cannot be reached, but it is rarely the first or only path.