What Is Reasonable Notice? Understand Your Rights Upon Termination in Alberta

Reasonable notice is one of the most misunderstood concepts in Canadian employment law, and many employees don’t realise they may be entitled to more than what’s written in their contract.

If you’ve been terminated, understanding what you’re actually owed before signing anything can help you avoid costly mistakes and have more clarity about your next steps.

What Is Reasonable Notice?

Legal Foundation in Alberta and Across Canada

When an employer ends your employment without cause, they’re required to provide advance warning, or pay instead of that warning, to give you time to transition. This is what’s referred to as reasonable notice.

In Alberta (and across Canada), this requirement is guided by common law, a legal system based on past court decisions rather than written legislation. Because it’s shaped by precedent, it can vary from case to case depending on the specific circumstances.

It’s important to understand that this is not the same as the minimum notice periods outlined in Alberta’s Employment Standards Code. Those minimums are just the legal floor, not necessarily what the law considers “reasonable” based on your specific situation.

Contract vs. Common Law Notice

Many employment contracts include clauses that try to limit your transition period or severance to the bare minimum allowed by law.

However, these clauses are not always binding:

• If those clauses are unclear or not properly drafted, they may not hold up legally.
  
• If the clause isn’t enforceable, the courts will look to common law (meaning previous court decisions in similar cases), which can mean you’re entitled to more compensation than your contract suggests.

This is why having your contract reviewed after a termination is so important, it could significantly impact what you’re owed.

How Reasonable Notice Is Calculated

Key Factors Courts Consider

When courts determine how much time or compensation an employee should receive when terminated without cause, they look at several key factors:

• Age: Older employees may be entitled to a longer period if it may take them more time to find comparable work.
  
• Length of Service: Generally, the longer you’ve been with your employer, the more time or compensation you will get.
  
• Position and Level of Responsibility: Senior roles or positions with specialized skills may warrant more time to transition than entry-level roles.
  
• Availability of Similar Employment: If it’s harder to find a similar job in your field or location, this can increase the amount of warning.
  
• Industry Norms: The expectations and hiring practices in your specific industry may also influence how much time is considered adequate.
  

Examples and Ranges

To give you a general sense, here are a few examples (note: these are illustrative only, your situation may differ):

• Oil and Gas Supervisor: A supervisor in Alberta’s oil and gas sector, in their mid-30s with almost 8 years of service, was given an 8-month transition period due to challenging industry conditions that made finding new work more difficult for them.
  
• Senior Vice President: A 50-year-old senior VP with 4 years of service received 12 months’ pay for severance, partly because a non-compete clause limited their job prospects.
  
• COO with Clear Contract Clause: A COO employed for 20 months received only 4 weeks’ severance pay because their contract clearly stated this term, and it exceeded the minimum required by law.

Employee Rights & Employer Obligations

What Employers Must Do Upon Termination

When an employer terminates an employee without cause, they have certain obligations:

• Provide Working Notice or Pay in Lieu: The employer must either give advance warning of termination or pay you in lieu of that time (severance pay). The amount is determined based on factors like your role, length of service, and industry conditions.
  
• Include Benefits Continuation: The employer must continue to provide benefits during the transition period or offer a lump-sum payment to cover the equivalent. This includes health, dental, and other benefits as per the employment contract or company policy.
  
• Bonuses and Accrued Vacation: If the employee were eligible for bonuses, commissions, or had unused vacation time, the employer must include these in the severance package. These components should be paid out or carried over according to the employee’s entitlement.

What You Should Expect from a Severance Package

When you receive a severance package, it should include the following:

• Breakdown of Severance Package: A clear explanation of the severance pay, which may include:
  • Base pay: Your regular salary for the transition period.
  • Bonuses and commissions: Any additional earnings you’re entitled to based on your role and performance.
  • Benefits: Details of any benefits continuation or a lump-sum payment in lieu.
    
• Proper Documentation: Make sure the employer provides the necessary paperwork:
  • Letter of Termination: A formal document outlining the termination and transition period.
  • Record of Employment (ROE): This is a critical document for your future job search and unemployment benefits.
    

Common Misconceptions About Reasonable Notice

“My Contract Says Two Weeks. That’s All I Get”

While your contract may specify a certain notice period, such as two weeks, that doesn’t necessarily mean it will hold up in court. If the termination clause in your contract is overly restrictive or ambiguous, you may be entitled to more time under common law. 

“Only Long-Term Employees Get Notice”

Even short-term employees may be entitled to compensation, particularly if they hold senior or specialized positions. Factors like job responsibilities, industry norms, and your ability to find new employment all play a role in determining your entitlement, regardless of how long you’ve been employed.

“If I’m Offered a Severance Package, It Must Be Fair”

Employers often offer packages that are lower than the amount you could legally claim, especially if they’re trying to minimize their costs. Don’t assume the initial offer is the final one, it’s important to carefully assess the offer and seek legal advice to ensure you receive the full amount you’re entitled to.

Negotiating Reasonable Notice

What to Do Before You Sign Anything

Before you sign any termination or severance documents, read through them thoroughly. Ensure that you understand the terms, especially the transition period and any compensation offered. Don’t rush, ask questions if anything seems unclear or incomplete.

It’s crucial to seek legal advice before accepting any severance package. A legal expert can help you assess if the offer truly reflects what you’re entitled to under the law, considering your specific circumstances.

How Legal Help Strengthens Your Position

An employment lawyer can review your severance package and advise if it meets legal standards. They can identify if you’re being offered less than you’re entitled to and help you understand your options to move forward.

An experienced lawyer can negotiate with your employer on your behalf to secure a better package. Alternatively, if you prefer to handle negotiations yourself, we can provide clear, step-by-step instructions to guide you through the process, ensuring you’re confident in your approach.

Why You Should Consult an Employment Lawyer

Clarity

An employment lawyer helps you understand what you’re entitled to under the law, not just what your employer offers or what’s written in your contract, so you can make an informed decision about next steps. 

Peace of Mind

By consulting an employment lawyer, you can navigate the legal complexities with professional guidance so you can make decisions with confidence, without worrying about missing important details.

Strategy

We take the time to review your severance package in detail, either negotiating on your behalf or providing you with a step-by-step plan for the best possible outcome. With our help, you can move forward and focus on the next chapter of your career.

If you’re dealing with a termination or reviewing a severance offer, we’re here to help.

Book a consultation with one of our Calgary employment lawyers to understand your rights and next steps.

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