What is Fair Severance Pay in Alberta?
The majority of Albertans are entitled to severance pay which is far greater than the minimum amounts established by the Employment Standards Code.
The question of what is proper severance pay depends on the unique facts of your situation. There is no “rule of thumb” such as “1 month per year of service”. Alberta Courts have rejected this concept.
Every case is unique and there are many other factors which can be relevant in determining the amount of severance that you are entitled to. Our research findings concluded that Canadian Courts have reviewed over 100 different factors when considering the question of fair compensation for wrongful dismissal.
Factors which influence severance pay include:
- Whether or not you have a written agreement which pre-determines your severance pay. Note that even if you have such an agreement, you should have it reviewed to ensure that it is valid. Many of these agreements are improperly drafted and are unenforceable.
- Your years of service with the employer, including any breaks or interruptions in service.
- Your age.
- The type of job. Typically, the more specialized or unique the job, the more severance someone is entitled to.
- How quickly you will be able to find similar work.
- Your medical status and particularly if this was a factor in the termination of your employment.
- Whether you were recruited and enticed to leave secure employment to join your current employer.