Work culture outside of the United States is often very different than what we may be accustomed to. This is particularly true when it comes to the termination of employment. Unless it is explicitly written into the employee contract, at-will employment is the expectation in the U.S. In Canada, however, the concept of at-will employment does not exist. 

So, for those looking to expand their organization across the border into Canada, they will need to understand the Canadian labor laws and employee termination laws of each province.

What is At-Will Employment?

At-will employment is a business term meaning the employer has the right to terminate employment at any time for any legal reason. Illegal or unlawful reasons for termination are set at the federal, state, and local levels and include discrimination (age, disability, pregnancy, etc.), retaliation, and more. 

Unless it was specified in the employment contract, there is also no expectation of severance, continuation of benefits, or notice of termination. Employers will also be able to legally change the terms of the employment relationship with no notice. These terms include wages, benefits, and paid time off. 

At-will employment extends to the employees as well. Employees are able to leave a position at any time for any reason—including no reason.

Termination Requirements in Canada

In Canada, there is no concept of at-will employment. The Canada Labour Code sets the standard for the country as a whole stating that an employer is required to provide written “Notice” at least two weeks in advance of termination without just cause. They can also choose to pay two weeks' wages at the regular rate in lieu of giving “Notice”. 

At the national level, severance pay is required after 12 consecutive months of employment. They are “entitled to 2 days’ regular wages for each full year that they worked for the employer before termination with a minimum of 5 days’ wages”. And, employees are not required to give notice unless their contract stipulates.  

This is the national standard, but each province sets its own standard within its individual Employment Standards Act, outlined below. It should be noted that most provinces will allow for termination pay in lieu of a notice period with pay equaling the same length as the notice period. A combination of notice and termination pay is also acceptable. 

Many provinces will consider a person “employed” by an organization both during active work and during leave or lay-off if there is still an employment relationship.

Alberta

Both employers and employees are required to give notice in Alberta. Termination notice is required, but termination pay can be made in lieu of written notice. A combination of both is also acceptable. This does not apply if the employee was employed for less than 90 days. No notice needs to be given if the employee has been with the company for less than 90 days. The notice period is based on the length of employment.

For employers

Exceptions to this rule include termination for just cause and employment on-site in the construction industry among others. The notice periods are scaled from one to eight weeks:

For employees 

There are exceptions to the rules in certain industries, if the health of the employee is involved, if they quit due to a change in terms, as well as other specified reasons. Notice periods are:

British Columbia

In British Columbia, employees are not required to give notice when they choose to leave a company. Employers, however, are required to provide written notice or termination pay or some combination. As with most provinces, there are some exceptions. 

The required length of notice is determined by the length of employment. No notice is required if employed for less than three months. Notice periods are:

Manitoba

Both employees and employers are required to give notice in Manitoba. As in other provinces, the amount of notice depends on the length of employment. No notice is required for those employed for less than 30 days.

For employers

For employees

New Brunswick

In New Brunswick, the employer is required to give notice depending on the length of employment. This is, however, not required for those with 6 months or less employment. New Brunswick keeps a simpler requirement than some of the other provinces. Notice periods are:

Newfoundland and Labrador

There is a minimum period of notice required in Newfoundland and Labrador. Though there are some exceptions, “Notice” must be given in writing after 3 months of employment. Employer and employee notice follow the same notice periods:

Nova Scotia

Nova Scotia’s Labour Standards Code requires both employees and employers to give “Notice” in writing. As with many of the other provinces, this does not apply to the construction industry. Other exceptions are listed including commissioned salespeople working outside the place of business without an established route, fishing boat employees, the real estate industry, and the car sales industry.

For employers

For employees

Nunavut

In Nunavut, employers must give “Notice” in writing. There are some exceptions, including the construction industry and employees working less than 25 hours per week. Their notice period is the simplest out of all the provinces: 2 weeks notice if employed 90 days or more.

Ontario

Ontario requires employers to provide written “Notice”, termination pay, or a combination. Severance pay is only required if the employee was employed for five or more years or if there were 50+ employees terminated over a 6-month period. Notice is not required with under 3 months of employment.

Quebec

“Notice” of termination is required by employers in Quebec as well. Reasonable notice is required from employees, but a notice period is not specified. Notice periods for employers are:

Saskatchewan

Once an employee has reached 13 weeks of service, both employee and employer are required to give notice in Saskatchewan. For employees, there is an expected two weeks notice period. For employers, notice periods are:

Yukon

Though there are some exemptions, like the construction industry and seasonal/intermittent employment less than 6 months a year, Yukon also requires a written “Notice” from both employee and employer.

For employers

For employees

Hire and Terminate Compliantly 

Looking to expand your services into Canada? Hire compliantly and follow the law to the letter when you work with The Payroll Edge. Contact us today!