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Severance Package Reviews

Home / Severance Package Reviews
Severance Package review for Alberta Employees

Severance Package Review Lawyers for Western Canada

To explain what a severance package is, we must first explain some basic employment law principles.

First, there are two types of terminations: “without just cause” and “with just cause”.  While we discuss what constitutes a with just cause termination more fully in our “Dismissal with Just Cause” section, a simple definition is as follows:

[with] [j]ust cause is conduct on the part of the employee incompatible with his or her duties, conduct which goes to the root of the contract with the result that the employment relationship is too fractured to expect the employer to provide a second chance.1

In contrast, a “without just cause” termination is simply a termination that doesn’t satisfy the above test. For example, if an employer terminates an employee because of a lack of work this will be a “without just cause” termination.

While employers are free to terminate employees without just cause at their discretion, there are some safeguards that help to protect the employee. For example, there is an implied term2 in every employment agreement requiring employers to give employees common law reasonable notice of termination. Courts determine an employee’s common law reasonable notice period based on various factors such as age, length of service, and character of employment.

However, in practice, most employers terminate employees effective immediately without providing them with notice at all. When this happens, the employer has breached the implied term of reasonable notice and is liable to the employee for the damage that results.

This damage is typically everything the employee would have earned had appropriate notice been given. These damages are also more commonly referred to as “pay in lieu of reasonable notice” or a “severance”. The amount of “pay in lieu of notice” or “severance” an employer offers an employee is a “severance package”.

With that said, when an employer terminates an employee effective immediately (such that the employer has breached the implied term of reasonable notice), employees also have a corresponding obligation: to “mitigate” their damages. This duty requires employees to take reasonable steps to search for comparable replacement employment. If the employee actually locates and commences work then the pay received reduces the employee’s claim dollar for dollar during the notice period. In contrast, if they are unable to find work throughout their notice period then their claim remains fully intact.

As we will see below, the principles of mitigation often impact whether an employee accepts the severance package their employer is offering them.

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Conan Taylor

Conan Taylor

PRINCIPAL PARTNER

Conan Taylor is the managing partner of Taylor Janis Workplace Law. He practices exclusively in the areas of workplace law, including labour, employment, and commercial litigation matters. In his over 15 years of practice, Mr. Taylor has represented both individuals and corporations respecting their workplace law matters.

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  • For Employees
    • Termination
      • Termination Without Cause
      • Just Cause Termination
      • Termination Notice
      • Terminations & Resignations
      • Resignation vs Termination
      • Termination Without Cause Vs Wrongful Dismissals
    • Severance Pay
      • Severance Package Reviews
      • Reasonable Notice (Severance)
    • Harassment, Bullying and Discrimination
    • Wrongful Dismissal
    • Constructive Dismissal
    • Unionized Employees
    • Government Workers
    • Workers on Contract
    • Employment Agreements
    • Temporary Layoffs
    • Non-Competition & Non-Solicitation Disputes
    • Restrictive Covenants
    • Professional Disciplinary Hearings
    • COVID-19 Legal Resources
    • Fees
  • For Employers
    • Employment Contracts
    • Workplace Policies
    • Employment Litigation
    • Executive Employees
    • Shareholder Disputes
    • Labour Lawyers
    • Employee Immigration
    • Third Party Insurance Claims
    • Human Rights Policies for Employers
    • Workplace Training & Seminars
    • Fees
  • Locations & Team
    • Meet Your Team
    • Locations
    • Contact Us
    • About Us
    • Press
  • Knowledge Centre
    • Alberta Employment Law
    • BC Employment Law
    • Employment Law Info
    • Severance Pay Deep Dive
    • Termination Tips
    • Wrongful Dismissal Help
    • Vancouver Articles
    • Calgary Articles
    • Edmonton Articles
    • Red Deer Articles
    • Kamloops Articles