Employment Law, August 29, 2024 - by Lypkie Henderson

What is Termination Without Cause?

In Canada, employees have numerous rights under the law. The law provides certain protections for employees who do not belong to a union. One of the most important of these protections is the requirement for an employer to provide sufficient notice, compensation, or both, upon terminating an employee “without cause”. Employment lawyers will note that employees enjoy rights to protect themselves from undue financial hardship and sudden instability when an employer chooses to terminate a working relationship for reasons other than misconduct.

First, we define the key terms in this process to understand if you should contact an employment lawyer in Alberta.

Termination Without Cause: A Definition

In Canada, terminations without notice or severance must occur for cause, meaning there must be clear and demonstrable evidence of repetitive, ongoing, or especially severe workplace misconduct. Any time an employer terminates an employee for other reasons, it may be a “termination without cause.” For example, a company choosing to downsize through layoffs does not have cause. However, they must provide the employee with reasonable notice and/or compensation in such cases.

What Are Examples of Termination for Cause?

Firing an employee for cause is not usually a simple matter of chronic tardiness or poor productivity. Instead, employers must have evidence proving that an employee acted maliciously or intentionally disregarded the business. Employers must either show that progressive discipline had been attempted to correct the employee’s work performance or that the employee’s actions were so egregious that they resulted in an immediate breakdown of the employee-employer relationship. They must prove that termination is the only reasonable option to end the behaviour.

For example, an employee caught stealing from the till may be fired for cause due to the theft. Likewise, an employee who physically assaults a coworker could face firing for cause. However, professional disagreements between employees and superiors are not at the same level.

Your Rights After Termination Without Cause

If an employer decides to terminate your role without cause, the law stipulates that they must provide you with one of several options. The first option is a working notice period. The employer must tell you they intend to terminate your employment and provide you with time to continue working there. This notification allows employees to continue earning money while planning their next steps. The amount of notice required varies from employee to employee but is often tied to the length of your service, position, age, and other factors.

Companies may offer you a severance package in lieu of notice. The value of your severance package should also reflect your time with the business and other factors. Be wary of signing any offers immediately, as companies may not always provide the legally required amount of severance. Companies may also provide you with a combination of working notice and severance.

Protect Your Rights at the End of Employment

Do you believe you’ve been terminated without cause? Have you received a severance offer from your business? Before signing the documentation, consider speaking to a trusted employment lawyer in Alberta from Lypkie Henderson. It is crucial to have any severance offer reviewed by an independent third party; otherwise, you may not always receive the full value you’re owed.

You do not have to sign offers from an employer immediately, even under pressure. Instead, consult with employment lawyers today to better understand your rights and the potential value of your severance.

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