The examination of the employment contract at issue should serve as a starting point for determining which specific contractual conditions employers and employees have agreed to govern the employment relationship. Some employment contracts may include a termination provision that establishes the employee`s right to dismissal and/or severance pay or severance pay to give instructions to the employer and employee on what is required in the event of termination. While “severance calculators” can be found online, we warn employers and employees not to rely on them. Most of these online tools only provide for the minimum legal requirements, and calculating termination requests can be a much more complex analysis, depending on the terms of the employment contract and/or applicable common law claims. The legal system in Ontario and British Columbia, known as the common law system, has evolved over time through thousands of court decisions. In common law severance pay, the exact calculation of severance entitlement depends on many factors, including the position of the employee. If you sign the documents, you waive your rights to contest the offer and you may never receive fair severance pay. It is important that employers and employees first review the relevant terms of the employment contract in question in order to determine the specific conditions relating to dismissal, dismissal, severance pay, severance pay and other obligations and claims. The statutory provisions of the Code are only minimum standards, and the employment contract and/or common law may provide for severance or severance pay in excess of the minimum termination or termination indemnity provided for in the Code. Note that employment contracts that purport to provide less than the minimum legal requirements of the Code are likely not valid or enforceable. Note that many employers may pay this minimum amount because they believe they are obeying the law, but in reality, employees can often claim more than the minimum right by applying customary law.
Employers sometimes negotiate departure agreements with employees. Termination agreements often include a “release” that describes the end of the employer`s responsibility to the employee. A valid release releases an employer from its obligation or liability to an employee, as set forth in the release. Normally, an employee cannot file a human rights complaint simply because they have been asked to sign a departure agreement that includes an exemption. This is a common business practice. Many people assume that you`ll have to work at a company for many years to qualify for a large severance package – or severance package at all. Employers often believe that they can fire an employee who has only been with the company for a year or two with only a few weeks` salary. Severance pay is available to most non-unionized, full-time, non-temporary workers in Alberta. Typically, contractors do not receive the same benefits as full-time employees, such as vacation pay or sick leave – the same goes for severance pay. You should not turn to employment standards for help with severance pay.
The provincial government will only help you obtain the minimum fees required by the Employment Standards Code (CES). The purpose of this article is to explain what severance benefits are, what they are based on, what they involve and their different structures. In the event of termination, an employee may be entitled to severance and/or severance pay in excess of the minimum legal requirements of the Code. Under the common law, an employee is entitled to a certain “reasonable period of notice” or payment in lieu of dismissal. A court considers a variety of factors in determining an employee`s common law claim. Here are some of the factors considered by the courts: As an employee, it is very important to familiarize yourself with Alberta`s severance regulations before signing documents with your employer. Eligibility for severance pay, minimum amounts to pay, and what you should expect in relation to a package are issues that can greatly affect your immediate financial future. I tell customers not to accept a termination for cause. An employment lawyer at my firm can review your dismissal free of charge to determine if it is legitimate and if severance pay is still due.