Termination Without Cause Examples: Understanding Your Rights in Alberta

Termination without cause is when your employer lets you go but either gives you time to prepare and find another job or pays you severance instead. Termination without cause examples might include losing your job because of company restructuring or financial struggles. While your employer doesn’t need to give a specific reason, they must provide reasonable notice or provide severance pay. Knowing your rights is important to ensure you’re treated fairly and receive what you’re owed under the law.

What is Termination Without Cause?

In Alberta, termination without cause happens when an employee is let go and receives either notice, meaning advance warning that their job will end on a future date, or severance, which represents the compensation the employee would have earned had they worked until that future date. Employers don’t need to tell you why they’re letting you go, but they must offer adequate notice or severance pay, as required by the Alberta Employment Standards Code.

How is It Different from “Termination With Cause”?

In contrast, termination with cause happens when an employee is let go for serious misconduct or poor performance. In these cases, no notice or severance is required. 

Examples of Termination Without Cause

Here are some termination without cause examples that help explain the different circumstances in which an employee might be let go.

Company Downsizing or Restructuring

Sometimes, a company needs to cut back on staff or reorganize due to economic factors. This could be because of things like a drop in sales, financial struggles, or efforts to improve efficiency. When this happens, layoffs can occur, and employees may be let go as part of the downsizing process, even if they’ve been performing well.

Change in Business Direction

Another common termination without cause example is a shift in business direction, where roles become redundant even if the employee’s performance was satisfactory. For example, the company may focus on a different market or service, and certain positions are no longer necessary.

Employee Fit or Performance Issues (Non-Discriminatory)

An employer may let someone go because they’re not a good fit for the role, work style, or company values. Alternatively, an employer might decide to terminate someone due to performance issues that are not serious enough to justify termination with cause. In both cases, the decision should not involve any discriminatory factors like race, gender, or age.

Employee Rights in Termination Without Cause

Severance Pay Entitlements

The Alberta Employment Standards Code sets out the legal minimum you are entitled to when you are terminated without cause. Typically, this is calculated based on how long you’ve been employed with the company. However, many employers will offer more than the minimum amount, depending on factors like the employee’s position and any agreements in place.

Reasonable Notice Requirements

If severance pay isn’t provided, the employer must give notice, which is the amount of time an employer must inform an employee before ending their job without cause. 

The Alberta Employment Standards Code sets the minimum notice period based on the employee’s length of service. However, in some cases, employees might be entitled to additional compensation beyond that minimum.  When deciding how much additional compensation an employee should receive, Alberta Courts may consider factors like:

• Length of Employment: Longer tenure typically means more notice.
• Position and Seniority: Higher-level or specialized roles may warrant more notice.
• Availability of Alternative Employment: If you have good job prospects, less notice may be needed.

These factors can influence the court’s decision on whether more notice is reasonable beyond the minimum outlined in the employment code.

Special Considerations for Vulnerable Employees

There are also extra protections in place for certain groups of employees. For example, pregnant employees or those nearing retirement may have additional considerations when terminated without cause. These individuals might face greater challenges in finding new work, so the notice period or severance pay may be adjusted accordingly.

Employer Obligations

When terminating an employee without cause, employers have several important responsibilities to ensure the process is handled properly and within the law.

Documenting the Termination Process

Employers should keep detailed records of the termination, including the reasons, any performance discussions, and proof of notice or severance pay. This documentation helps avoid confusion and can serve as evidence if legal issues arise.

Ensuring Compliance with Alberta’s Legal Requirements

Employers must follow the Alberta Employment Standards Code, providing the required notice period or severance pay based on the employee’s service length, role, and employment agreement. Compliance ensures the employee is treated fairly and avoids legal complications.

Avoiding Wrongful Dismissal Claims

Wrongful dismissal happens when an employer fails to provide the employee with adequate notice, or pay in lieu of notice. Employers should make sure their actions align with the Alberta Employment Standards Code, the applicable employment contract, and the common law where applicable. 

Common Misconceptions About Termination Without Cause

Employers Must Always Provide a Reason

Many people assume that terminations are always linked to performance or behaviour and, as a result, believe employers must provide a specific reason when terminating an employee without cause. However, employers can make these decisions without explanation, as long as they provide the required notice or severance pay.

Employees Cannot Negotiate Severance Terms

You don’t have to accept the initial offer from your employer. You can negotiate for better terms than the minimum set by the Alberta Employment Standards Code. Factors like your length of service, position, and any existing agreements may impact what you can negotiate. If you feel your severance offer is inadequate, you have the right to discuss it with your employer or seek legal advice.

When to Consult an Employment Lawyer

If you’ve been terminated without cause, there are certain situations where it’s wise to consult with an employment lawyer. Here are some key reasons to seek legal advice:

• Reviewing Severance Agreements or Termination Letters: An employment lawyer can help you understand the terms of your severance agreement and ensure you’re being offered what you’re legally entitled to.
• Assessing Potential Wrongful Dismissal Claims: If you suspect your termination may be unlawful, an employment lawyer can evaluate whether your case qualifies as wrongful dismissal and guide you on your options for pursuing legal action.
• Addressing Cases of Potential Discrimination: If you believe your termination may be based on discriminatory factors like gender, age, race, or other protected characteristics, it’s essential to seek legal advice to understand your rights and next steps.

If you find yourself in any of these situations, don’t hesitate to contact our experienced Calgary employment lawyers for a consultation. We can help you navigate the complexities of employment law and ensure you’re treated fairly.

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