In Alberta, reasonable notice of termination is calculated based on both statutory and common law frameworks. The Employment Standards Code (ESC) sets the minimum legal requirements, while common law (judge-made law) may provide greater notice periods based on specific circumstances.
1. Statutory Notice (Employment Standards Code)
The minimum notice employers must provide under the Alberta Employment Standards Code depends on the employee’s length of service:
- 90 days to 2 years: 1 week of notice
- 2 years to 4 years: 2 weeks of notice
- 4 years to 6 years: 4 weeks of notice
- 6 years to 8 years: 5 weeks of notice
- 8 years to 10 years: 6 weeks of notice
- 10 years or more: 8 weeks of notice
Alternatively, employers may provide pay in lieu of notice (termination pay) based on the employee’s regular wages.
Exceptions: Employers are not required to give notice if the employee:
- Worked less than 90 days
- Was terminated for just cause
- Was employed on a fixed-term basis (if the term expires)
2. Common Law Notice
Beyond statutory minimums, courts in Alberta may award reasonable notice under common law if there is no valid termination clause limiting notice. Courts consider several factors (the “Bardal Factors” from Bardal v. Globe & Mail Ltd.) when calculating common law notice:
- Length of service: Longer service usually means longer notice.
- Age: Older employees may receive more notice due to challenges finding new work.
- Character of employment: Senior or specialized roles typically receive longer notice.
- Availability of similar employment: If comparable jobs are scarce, notice may increase.
Typical common law notice ranges from 2 to 4 weeks per year of service, but the total can vary. For long-service employees in senior roles, notice can be as high as 26 months.
3. Calculating Notice in Practice
When determining the reasonable notice period:
- Check the contract: If there is a valid, enforceable termination clause, it typically governs.
- Apply statutory minimums: Employers must meet or exceed the ESC minimums.
- Consider common law entitlements: If no valid clause exists, assess notice using the Bardal factors.
4. Other Considerations
- Severance Pay: Alberta law does not mandate separate severance, but common law may award it as part of reasonable notice.
- Mitigation: Employees must try to find new work to reduce their damages.
- Constructive Dismissal: Major unilateral changes to employment terms may trigger the right to reasonable notice.
5. Minimum Pay in Lieu of Notice (Employment Standards Code)
Pay in lieu of notice is calculated by determining the wages an employee would have earned during the notice period if they had continued working. In Alberta, the calculation depends on the Employment Standards Code (ESC) minimums or common law entitlements if no valid employment contract limits the notice.
Under Alberta’s Employment Standards Code, if an employer terminates an employee without cause, they must provide written notice or pay in lieu of notice based on the employee’s length of service.
Notice Period Entitlement:
- 90 days to 2 years: 1 week of notice
- 2 years to 4 years: 2 weeks of notice
- 4 years to 6 years: 4 weeks of notice
- 6 years to 8 years: 5 weeks of notice
- 8 years to 10 years: 6 weeks of notice
- 10 years or more: 8 weeks of notice
6. How to Calculate Pay in Lieu of Notice
The calculation is based on the employee’s regular wages:
Pay in Lieu of Notice = (Regular Weekly Wages) × (Weeks of Notice)
Regular weekly wages include: Base salary or hourly wage, Regularly earned commissions (average over the previous 13 weeks) Non-discretionary bonuses (if part of the employment contract)
Exclusions: Overtime, discretionary bonuses, and reimbursements are not included.
If an employee has worked for 5 years, earning $1,000 per week, they are entitled to 4 weeks’ pay: 1,000 × 4 = 4,000
Total pay in lieu of notice: $4,000.
7. Common Law Calculation (If No Valid Contract)
If there is no enforceable termination clause, an employee may be entitled to reasonable notice under common law, which often exceeds the statutory minimum.
Courts calculate common law notice based on factors like:
- Length of service
- Age (older employees may get more notice)
- Job position (specialized roles receive longer notice)
- Availability of similar employment
Typical range: 2 to 4 weeks of pay per year of service (with a maximum of 26 months in exceptional cases).
Example: A senior manager with 10 years of service earning $1,500 per week may receive 10 months’ pay rather than the 8 weeks required by law.
1,500 × 4 × 10 = 60,000
Total pay in lieu under common law: $60,000.
8. Lump Sum vs. Salary Continuation
Employers can choose how to deliver the payment:
- Lump Sum: Paid all at once, fully taxed immediately.
- Salary Continuation: Payments made over the notice period, with potential reduction if the employee finds a new job.
*Always seek legal advice. The above is for information purposes only.
Stephen Dugandzic received his Juris Doctor degree from the University of Alberta in 2013 and is Calgary-based. He previously practised with Bennett Jones LLP and Taylor Janis LLP before founding YYC Employment Law Group in 2018 and Evolution Legal in 2026.