Termination Without Cause: Determining Reasonable Notice
Termination Without Cause – Wrongful Dismissal
When an employee is terminated without cause, it means they are being let go for reasons such as cost cutting, restructuring, or realignment. All employees in Canada are entitled to a certain amount of notice (or pay in lieu of notice) if an employer without just cause terminates them. This compensation is in place to protect employees left without employment with no warning or any type of income.
If you have been terminated without cause in BC, you may have several questions regarding this topic. Below we have compiled some helpful information to help you understand how much you are entitled to when terminated without cause and when payment is required.
How Much Are You Entitled to When Terminated Without Cause in BC?
Termination without cause is perfectly legal in BC if the employer provides you with reasonable notice of termination. Reasonable notice can be given in the form of working notice, pay in-lieu-of working notice or both.
If a BC employer does not provide an employee with reasonable notice, adequate compensation must be issued. If a BC employer fails to do so, a wrongful dismissal case could be brought against them. How much payment is required depends on the length of time an employee was employed:
- After three consecutive months of employment: one week’s pay must be provided
- After 12 consecutive months of employment: two weeks’ pay must be provided
- After 36 consecutive months of employment: three weeks’ pay must be provided
- For each additional year: a week’s pay (up to a maximum of eight weeks) must be provided
How Much Pay Are You Entitled To When Terminated Without Cause?
There are two types of law – Statutory Law and Common Law.
The statutory requirements for notice are as follows:
- One week’s pay must be granted after 3 consecutive months of employment
- Two week’s pay must be granted after 12 consecutive months of employment
- Three weeks’ pay must be provided after 36 consecutive months of employment.
- A week’s pay up to a maximum of 8 weeks must be granted for each additional year.
According to common law, reasonable notice is based on length of service, type of position (including salary), age of the employee, and availability of similar employment at the time of termination. Under these requirements, reasonable notice may amount to at least one month per year of employment.
The Period of Common Law Notice Can Be Varied – BC Employment Law
Under common law, severance is not just one or two weeks’ compensation — an employee terminated without cause can be owed up to 24 months of pay. However, it may be stipulated in the original employment contract when hired by the company. This contract may require less notice of termination than common law requirements, but not less than the entitlements listed under the BC Employment Standards Act/Statute Law.
Have You Been Terminated Without Cause in BC?
If you are involved in a termination without cause situation, it is important you speak with Tim Louis, an experienced employment lawyer, to ensure that your employment rights are applied, and you have been provided with fair compensation. Hiring a lawyer that specializes in employment law will help ensure that you receive a””fair settlement. If you have been let go by your employer or require a severance package review, contact Tim Louis Law today by calling 604-732-7678 or email timlouis@timlouislaw.com, and we will set you up with a no-obligation telephone consultation.
Learn more about termination without cause in the BC Employment Standards Act
By Tim Louis
