Do I Qualify for Severance If I Quit? Alberta Law Q&A

The short answer to whether you qualify for severance if you quit your job voluntarily in Alberta is “no”.

Because the situation is out of the employer’s control, the employment contract is considered to have ended, and you are not entitled to reasonable notice or severance pay in lieu of notice.

However, there are circumstances where severance pay is due if you resign — and it’s important to understand if these circumstances apply to you as an employee.

When can you seek severance in Alberta?

An employer in Alberta can terminate you without cause at any time — as long as you are provided with a minimum level of severance pay.

If you have been terminated on the spot without notice or severance and there was no suggestion of misconduct on your part, you are within your rights to seek severance.

Likewise, if your work situation changes through no fault of your own and without your consent — and you’re forced to resign — it is known as constructive dismissal. This is another situation where you can claim compensation in the form of severance.

Let’s take a closer look at this…

Constructive dismissals and severance pay in Alberta

If an employer makes significant changes to your employment terms without your consent, and you’re left with no reasonable option other than to resign, you may be able to claim constructive dismissal.

Unilateral and significant changes to your hours, shift, pay, benefits, job title or location are prohibited. Neither is a toxic work environment that forces an employee to quit.

In most cases, it’s best to talk problems or proposed changes through with your employer and agree on what’s acceptable.

However, you may be within your rights to reject the proposed changes, leave your job and claim constructive dismissal and severance pay.

How should you respond to significant changes in your job?

Before taking any action over significant changes to the terms of your job, you should seek legal advice from an experienced employment lawyer.

It may be a delicate situation, and a lawyer can advise you on what steps you should take to protect your legal rights.

If you continue working, it may be seen as implicit acceptance of the changes — and you may set an unwelcome precedent that allows your employer to continuously change the terms of employment in the future.

On the other hand, quitting and claiming constructive dismissal without being sure of your legal position is unwise.

Your lawyer will advise you of the steps you need to take for the best outcome — depending on your circumstances, this may involve resigning and seeking alternative employment.

Forced resignation and severance

Like with a constructive dismissal, if your employer puts pressure on you or directly instructs you to resign, you are entitled to severance pay.

Some unscrupulous employers use resignations to avoid paying severance. This is a wrongful dismissal; you can fight back through the legal system.

If you’re approached by your employer to resign, document your opposition to the request by writing a letter to your employer and seek legal advice.

Is severance pay mandatory?

It’s worth remembering that an employer can let you go for any reason in Alberta as long as the reason is not discriminatory and reasonable notice or severance is provided.

So, if you’re a non-unionized employee in Alberta, you are entitled to severance if you are terminated on the spot without cause or by constructive dismissal.

Under the legislation, you may also be entitled to mandatory severance pay if your employer incorrectly fires you “for cause”. This is a relatively frequent occurrence in Alberta workplaces.

Similarly, if you submit a notice of your resignation to your employer, who then decides to let you go before the end of the notice period, the employer must pay you severance for the remaining period.

Severance pay is not mandatory in Alberta if:

• You quit without providing notice
• You resign or retire
• Your limited-term contract ends
• You’re given the option to take a different position with the company
• You leave due to a situation that is out of the employer’s control

Employee rights regarding severance are enshrined in Alberta’s Employment Standards Code, which outlines minimum standards for employers to follow.

How much severance are you entitled to in Alberta?

The amount of severance that you’re due can be complex, as employment law often intersects with common law here.

Full severance pay entitlements under common law are higher than the minimum standards outlined in the Employment Standards Code.

The minimum standards say this:

• Between 90 days and two years of service: 1 week’s notice or severance pay
• 2 years to 4 years of service: 2 weeks’ notice or severance pay
• After 4 to 6 years of service: 4 weeks’ notice or severance pay
• After 6 to 8 years of service: 5 weeks’ notice or severance pay
• After 8 to 10 years of service: 6 weeks’ notice or severance pay
• After 10 years or more: 8 weeks of notice or severance pay

Employers often refer only to the minimum standards when calculating severance, but many employees who quit or are terminated are entitled to more. This depends on factors such as:

• The employee’s age
• The length of employment
• The position and salary
• The availability of similar employment
• Bonuses and commissions
• Benefits
• Overtime pay

If you are unsure how much severance pay you qualify for and are unsure whether to accept an offer from your employer, it’s best to check with an experienced employment lawyer before signing any paperwork.

You may have a wrongful dismissal case if your employer is underpaying severance — either deliberately or unwittingly.

If you have any questions about your legal rights as an employee, an employment lawyer from Taylor Janis LLP in British Columbia can advise you during an initial confidential telephone or video consultation.

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