Can My Employer Fire Me Without Cause in Alberta?

Can My Employer Fire Me Without Cause in Alberta?

Short answer: yes, in many cases an employer in Alberta can terminate an employee without cause.

But that does not mean the employer can fire someone for any reason, in any way, or without paying anything.

If you are fired without cause, your employer generally has to provide:

• working notice;

• termination pay instead of notice; or

• a combination of both.

In some cases, you may also be entitled to more than the minimum amount required by Alberta employment standards legislation.

The important point is simple:

Being fired without cause does not automatically mean the termination was illegal. But it does mean your employer must deal with your termination entitlements properly.

What Does “Without Cause” Mean?

A without-cause termination means the employer is ending the employment relationship without alleging serious misconduct.

In plain language, the employer is saying:

“We are ending your employment, but we are not claiming you did something serious enough to lose your right to notice or pay.”

Employers may terminate employees without cause for many reasons, including:

• restructuring;

• downsizing;

• shortage of work;

• performance concerns that do not amount to just cause;

• a change in business needs;

• elimination of a position;

• personality or management fit; or

• a decision to move in a different direction.

The employer does not usually have to prove a good business reason for a without-cause termination.

But the employer must still comply with the law.

Without Cause Does Not Mean Without Rights

One of the biggest misunderstandings about employment law is the idea that if an employer can terminate without cause, the employee has no rights.

That is not correct.

If you are terminated without cause, the key issues are usually:

• whether you received proper notice or termination pay;

• whether your employment contract limits your entitlement;

• whether common law reasonable notice applies;

• whether all wages, vacation pay, benefits, commissions and bonuses were addressed;

• whether the termination was connected to a prohibited reason; and

• whether you are being asked to sign a release.

The termination may be allowed.

The severance package may still be too low.

Alberta’s Minimum Termination Rules

Under Alberta’s Employment Standards Code, many employees who are terminated without cause are entitled to minimum written termination notice or termination pay.

The general minimums are:

• 1 week if the employee worked more than 90 days but less than 2 years;

• 2 weeks if the employee worked 2 years or more but less than 4 years;

• 4 weeks if the employee worked 4 years or more but less than 6 years;

• 5 weeks if the employee worked 6 years or more but less than 8 years;

• 6 weeks if the employee worked 8 years or more but less than 10 years; and

• 8 weeks if the employee worked 10 years or more.

These are minimum standards.

They are not always the full amount an employee may be entitled to receive.

Notice, Pay in Lieu, or Both

An employer may give working notice instead of paying everything immediately.

For example, if an employee is entitled to 4 weeks of notice, the employer may provide:

• 4 weeks of working notice;

• 4 weeks of termination pay; or

• a combination, such as 2 weeks of working notice and 2 weeks of pay.

If the employer ends employment immediately, termination pay is often paid instead of requiring the employee to work through the notice period.

The practical point is this:

The employer can often choose the method, but the employee must still receive the required entitlement.

The Minimum May Not Be the Full Amount

The employment standards minimum is only the starting point.

In many Alberta termination cases, the larger issue is whether the employee is entitled to common law reasonable notice.

Common law reasonable notice can be significantly more than the statutory minimum, unless the employment contract clearly and validly limits the employee’s entitlement.

This is why two employees with the same length of service may receive very different severance packages.

A proper severance assessment may consider:

• length of service;

• age;

• position and responsibilities;

• compensation;

• availability of similar work;

• experience, training and qualifications; and

• the wording of the employment contract.

The practical rule is simple:

Do not assume the employment standards chart tells you the full value of your claim.

Why the Employment Contract Matters

Your employment contract can make a major difference.

Some contracts contain termination clauses that try to limit the employee to the minimum amounts required by employment standards legislation.

A properly drafted termination clause may be enforceable.

But not every termination clause is valid.

A termination clause may be challenged if it is unclear, incomplete, inconsistent with minimum employment standards, or does not properly remove the right to common law reasonable notice.

This matters because an employer may say:

“Your contract limits you to the minimum.”

That may be true.

But it may not be.

The contract should be reviewed before assuming the employer’s calculation is correct.

When a Without-Cause Termination May Still Be Unlawful

An employer can often terminate without cause.

But an employer cannot terminate for an unlawful reason.

A termination may create legal issues if it is connected to:

• disability;

• pregnancy;

• family status;

• race, ancestry, place of origin or religious belief;

• gender, gender identity or gender expression;

• age;

• sexual orientation;

• mental or physical disability;

• protected medical leave;

• making a workplace complaint;

• raising employment standards issues;

• reporting safety concerns;

• refusing unsafe work;

• retaliation for asserting legal rights; or

• another protected ground or protected activity.

The employer may describe the termination as “without cause.”

But the label is not always the end of the analysis.

The key question is whether the real reason for the termination was lawful.

Human Rights Issues

A without-cause termination can still raise human rights concerns.

For example, issues may arise if an employee is terminated shortly after:

• disclosing a disability;

• requesting medical accommodation;

• becoming pregnant;

• taking or requesting protected leave;

• raising family-status accommodation needs; or

• making a complaint about discrimination or harassment.

Timing alone does not prove the termination was discriminatory.

But suspicious timing can be important.

The practical point is this:

An employer cannot avoid human rights obligations simply by calling the termination “without cause.”

What If You Were Fired During Medical Leave?

Being on medical leave does not make an employee immune from termination in every situation.

But terminating an employee during or shortly after medical leave can raise serious issues.

The questions may include:

• whether the termination was connected to the medical condition;

• whether the employer knew about the disability;

• whether accommodation was requested;

• whether the employer considered accommodation;

• whether the position was genuinely eliminated;

• whether other employees were treated differently; and

• whether the employer had a legitimate non-discriminatory reason.

If the termination is connected to disability or medical leave, the case may involve more than severance.

What If You Were Fired After Complaining?

A termination may also be problematic if it appears to be retaliation.

For example, concerns may arise if an employee is fired after:

• asking about unpaid wages;

• raising overtime issues;

• making a safety complaint;

• reporting harassment;

• requesting accommodation;

• taking a protected leave;

• refusing unsafe work; or

• asserting workplace rights.

An employer may still say the termination was without cause.

But if the real reason was retaliation, the employee may have additional rights.

With Cause vs. Without Cause

A with-cause termination is different from a without-cause termination.

If an employer alleges just cause, it is claiming the employee did something serious enough to justify dismissal without notice or termination pay.

Just cause is a high standard.

It may involve serious misconduct such as dishonesty, serious insubordination, workplace violence, major policy breaches or other conduct that fundamentally damages the employment relationship.

But not every mistake is just cause.

Not every performance issue is just cause.

Not every policy breach is just cause.

The employer must be able to prove that just cause existed.

The practical rule is simple:

If your employer says you were fired for cause, that does not automatically make it true.

Can You Be Fired for Poor Performance Without Cause?

Yes, an employer may terminate an employee without cause because of performance concerns.

In many cases, the employer may decide not to allege just cause and instead provide notice or pay in lieu.

That may be lawful.

But the employer must still provide the required termination entitlements.

If the employer claims poor performance amounts to just cause, the analysis becomes more complicated. The employer may need to show that the employee was warned, given a reasonable opportunity to improve and told that employment was in jeopardy, depending on the circumstances.

The important distinction is this:

Poor performance may explain why the employer ended the job, but it does not automatically eliminate the employee’s right to notice or pay.

Can You Be Fired During Probation?

A probationary employee may have fewer rights than a long-service employee, but probation does not mean the employer can do anything it wants.

In Alberta, employees who have worked 90 days or less are generally not entitled to statutory termination notice under employment standards legislation.

However, other issues may still matter, including:

• what the employment contract says;

• whether the employee was terminated for a discriminatory reason;

• whether the employee was terminated for retaliation;

• whether the employer acted in bad faith; and

• whether the employee had already passed the statutory threshold.

The practical point is this:

Probation is not a free pass for unlawful termination.

Can You Be Fired After a Temporary Layoff?

A temporary layoff can become a termination if it lasts too long or does not comply with the applicable rules.

There may also be issues if the employer did not have the contractual right to temporarily lay off the employee in the first place.

If a temporary layoff becomes a termination, the employee may become entitled to termination pay or other damages.

The key question is not just whether the employer used the word “layoff.”

The key question is whether the layoff was legally permitted and whether the employment relationship has effectively ended.

What Should Be Included in Your Final Pay?

After a without-cause termination, the employer should address all amounts owing.

This may include:

• unpaid wages;

• salary or hourly pay up to the last day worked;

• vacation pay;

• statutory termination pay;

• benefits continuation or compensation for lost benefits;

• commissions;

• bonuses or incentive compensation;

• pension or retirement contributions;

• allowances; and

• any other earned compensation.

Severance is not always just base salary.

If your total compensation included bonuses, commissions, benefits, vehicle allowance, pension contributions or equity compensation, those items should be reviewed.

Bonuses and Commissions

Bonuses and commissions often become disputed after a termination.

An employer may say that no bonus is owed because the employee was not actively employed on the payout date.

That may not end the analysis.

Important questions include:

• whether the bonus or commission was earned before termination;

• whether it would have been earned during the notice period;

• whether it was discretionary or part of regular compensation;

• what the plan language says;

• whether the plan clearly removes entitlement after termination; and

• whether the limiting language is enforceable.

The practical rule is simple:

Do not assume a severance package is complete if it ignores bonus or commission compensation.

Do You Have to Sign the Severance Package?

Usually, an employer cannot require you to sign a release in order to receive amounts that are already legally required.

But an employer may require a signed release before paying enhanced severance above the minimum amount.

A release is important because it usually means you are giving up the right to bring further claims against the employer.

Before signing, you should understand:

• what amount is being offered;

• whether the offer is only the statutory minimum;

• whether common law reasonable notice may be higher;

• whether the employment contract limits your rights;

• whether bonuses, commissions and benefits are included;

• whether there are human rights or retaliation issues;

• whether the release is too broad; and

• whether the package creates ongoing obligations.

The practical point is this:

Do not sign away your rights until you know what those rights are.

What If the Employer Gives You a Deadline?

Many severance offers come with a deadline.

The deadline may say the offer expires in a few days.

That does not necessarily mean the offer is fair, final or legally correct.

You can usually ask for more time to review the package. You can also ask questions, request clarification or make a counteroffer if the package does not reflect your full entitlement.

The practical rule is simple:

Do not let a short deadline pressure you into signing something you do not understand.

What Documents Should You Gather?

If you were fired without cause, gather the key documents before assessing your rights.

These may include:

• your employment contract;

• any amendments to the contract;

• the termination letter;

• the severance offer;

• the release;

• recent pay statements;

• T4s or annual compensation summaries;

• bonus plans;

• commission plans;

• equity or stock option documents;

• benefits information;

• pension or retirement savings documents;

• workplace policies;

• performance reviews;

• emails or messages about the termination; and

• documents relating to any medical leave, accommodation request, complaint or protected leave.

These documents help determine whether the termination was handled properly and whether the severance offer is complete.

Common Mistakes to Avoid

There are several common mistakes employees make after being fired without cause.

Do not assume the termination is illegal just because it feels unfair. Employers can often terminate without cause if they provide proper notice or pay and do not act for an unlawful reason.

Do not assume the severance offer is correct. The offer may be based only on minimum employment standards.

Do not ignore the employment contract. The contract may determine whether common law reasonable notice applies.

Do not focus only on salary. Benefits, bonuses, commissions and other compensation can matter.

Do not overlook human rights or retaliation issues. A termination called “without cause” can still be unlawful if the real reason is prohibited.

Do not sign a release too quickly. Once signed, it may be difficult or impossible to ask for more.

What This Means Practically

Three rules are worth remembering.

Yes, an employer can often fire an employee without cause in Alberta. But the employer generally must provide proper notice, pay in lieu of notice, or both.

Without cause does not mean without compensation. The employee may be entitled to the employment standards minimum or, in some cases, common law reasonable notice.

The reason still matters. A termination may be called “without cause,” but it can still create legal issues if it is connected to discrimination, retaliation, protected leave or another unlawful reason.

Speak With an Alberta Employment Lawyer

If you were fired without cause in Alberta, the key question is whether the employer handled the termination properly and whether the severance offer reflects your full entitlement.

A proper review should consider:

• your employment contract;

• your length of service;

• your age and role;

• your full compensation package;

• whether common law reasonable notice applies;

• whether bonuses, commissions and benefits were included;

• whether the termination was connected to a prohibited reason;

• whether there are human rights or retaliation issues; and

• whether you are being asked to sign a release.

 

Berjak Law handles employment law matters in Edmonton and across Alberta.

 

Berjak Law

10080 Jasper Avenue, Suite 301
Edmonton, Alberta

780-879-0200

This article provides general information about without-cause terminations in Alberta and is not legal advice. Termination rights are fact-specific, and the amount owed can depend on the employment contract, legislation, common law and the circumstances of the dismissal.