Employment Law, July 23, 2024 - by Lypkie Henderson

Understanding Wrongful Dismissal and What You Need to Know

Employment law exists to ensure fairness for both employers and employees. As an employee, it is important to know what your legal entitlements are when you are being terminated so that you may recognize if your employer is engaging in what’s considered wrongful dismissal in Alberta.

While generally an employer is permitted to terminate an employee without cause at any time, a without-cause termination must be done appropriately. It is key for workers to understand these rules.

Do you believe an employer ended your working relationship improperly? You may need to speak to an employment lawyer in Alberta. Before you do so, review the following facts to understand the possible scenarios better.

What is termination for just cause?

An employer may terminate an employee for just cause when it can show that the employee’s conduct has led to a significant breakdown in the employer-employee relationship. What constitutes just cause is a matter of law and may be a matter of disagreement between the employee and employer. Courts have held that in order to justify a just-cause termination, the employer must show that termination was a proportionate response to the misconduct of the employee. In many situations, the employer must also show that progressive discipline of the employee had been attempted prior to termination.

If you believe your employer’s reasoning did not qualify as a true “just cause,” you should speak to an employment lawyer.

When does a termination become wrongful dismissal?

A wrongful dismissal is a dismissal that does not align with the statutory or common law on termination. An employer who does not have just cause or uses inappropriate reasoning might be making a wrongful dismissal. In other cases, a wrongful dismissal occurs because the employer failed to meet their obligations on a without-cause termination.

An employee’s entitlement on a without-cause termination can be determined by the following:

  1. The Employment Standards Code legislation;
  2. The employment agreement between the employer and employee; and
  3. The common law, if no employment agreement exists or if the employment agreement is found be unenforceable.

In Alberta, all employers are obligated to provide minimum notice of termination or minimum termination pay as stated in the Employment Standards Code. However, that is only a minimum and you may be entitled to more, depending on your employment agreement.

If your employment agreement contains a termination clause which clearly and unambiguously limits your notice period to the minimums found in the Employment Standards Code, your entitlement may be limited. Whether a termination clause is sufficiently clear and unambiguous is again a question of law, and you should speak to an employment lawyer to assist you in making that determination.

If there is no written employment agreement between yourself and the employer, or if your termination clause is found to be unenforceable, you may be entitled to common law reasonable notice. The amount of notice that employers are obligated to provide can depend on many factors and circumstances, but they generally include the following factors:

  1. The employee’s age;
  2. The employee’s position;
  3. The employee’s years of service with the employer; and
  4. The availability of comparable employment in the job market.

Employers may also choose to provide you a severance in lieu of providing you reasonable notice of termination. It is always recommended to have an employment lawyer review your severance package to ensure that it is fair and indicative of your entitlement under common law reasonable notice.

Find Assistance for Your Next Steps

Do you believe the circumstances of your termination amount to wrongful dismissal in Alberta? It is important to pursue your claim promptly. Whether an employer did not provide notice, failed in their severance obligations or did not have a just cause, experienced legal help is essential.

At Lypkie Henderson, we’ve successfully handled many such cases. Our understanding of the law can illuminate whether you have a case to pursue. Connect with an employment lawyer in Alberta from our firm for detailed insights. Together, we can determine the best options for your next move.

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