Can You Be Fired Without Warning in Canada?

Understanding Termination Laws and Your Rights

Anna Dunaeva DLegal Anna Dunaeva January 25, 2025
  
    
DLegal Law Office - warning

Losing your job can be a stressful and life-altering experience, especially if it happens without warning. In Canada, many workers are left wondering whether an employer can simply terminate their employment on the spot.

The good news is that most full-time employees in Canada cannot be fired without notice or severance. Most employers are legally required to provide either notice of termination, which allows the employee to continue working during the notice period, or receive pay in lieu if notice is not given.

However, there are some instances where you can be fired without warning. This includes rare cases where serious misconduct is involved or specific circumstances, jobs, or industries, such as during a probation period or for employees in casual, temporary, or exempt roles.

Understanding these rights according to your circumstances can provide clarity and peace of mind during uncertain times, ensuring you’re treated fairly in the workplace. However, if you have any specific questions about the rules for firing employees in Alberta, or if you feel you have been unjustly terminated, please get in touch with our employment lawyers today.

    
    

What Are the Rules for Firing Employees in Canada?

For the majority of employees, the rules for termination depend on whether an employee has been let go “with cause” or “without cause.” A termination is generally legal as long as the employer provides reasonable notice either of termination where the employee continues working during the notice period or pay in lieu of notice where compensation is given for the notice period instead of requiring the employee to work.

The minimum notice period and how much severance pay is required, is determined by provincial or territorial employment standards legislation. For example, in Alberta, working notice begins at one week after 90 days and increases up to eight weeks for 10 years of service.

Termination with cause, on the other hand, means the employer is ending the employment relationship or terminating employees, due to serious misconduct, breach of trust, or other significant issues attributable to the employee. In this case, employers are not required to give notice or provide severance pay. Just cause must be significant, such as theft, fraud, dishonesty, workplace violence or harassment, a serious breach of company policies, chronic absenteeism without valid reasons, or wilful neglect of duties, and employers must be able to demonstrate it.

Employers must demonstrate the misconduct was severe enough to irreparably damage the business or employment relationship, and/or progressive discipline such as warnings and suspensions were applied (except in extreme cases) before terminating an employee. Courts tend to scrutinize just cause terminations closely, and employers bear the burden of proof. If they fail to prove employee termination for just cause, the termination may be deemed wrongful, and the employee could be entitled to compensation.

    

Exceptions

There are some scenarios when employers are not required to give their employees severance pay, reasonable working notice or termination pay. In Canada, certain jobs or industries may allow for termination without notice, such as during a probation period or for employees in casual, temporary, or exempt roles.

During most employees’ probation period (often 3 months but this can vary based on employment contracts or an enforceable termination clause), employers can terminate employees without notice or severance pay. However, this must be written into the employment contract for it to be legally binding.

Similarly, federally regulated industries, such as banking, telecommunications, and transportation, operate under the Canada Labour Code. Employees in these sectors who have worked less than three months can be terminated without notice if the termination aligns with the provisions of the Code.

Industries like hospitality, retail, and healthcare, where casual or on-call workers often work without guaranteeing ongoing employment, may not be bound to the rules of notice or severance pay in their province. These workers can be let go without reasonable notice due to the nature of their shift-based or as-needed arrangements.

Temporary or fixed-term employees may also be terminated without notice if their contract explicitly states an end date. This practice is common in industries like construction, administrative roles, and seasonal agricultural work. In roles within the gig economy, such as ride-share drivers or delivery workers, employment contracts often waive notice requirements, provided they meet minimum employment standards.

    

Does an Employer Have to Tell You Why You Were Fired in Canada?

In Canada, employers are not legally required to provide a reason for terminating an employee. However, the reason will be recorded in an employee’s employment record, which can be accessed through Service Canada. Likewise, if an employee files a complaint to a tribunal in their province about the termination, the employer may be required to justify their actions.

Employers are required to provide written notice of termination to comply with Canadian employment law. This document ensures there is a clear, unambiguous record of the termination. It includes the date of termination, the notice period or confirmation of pay instead of notice, information on any severance pay, vacation pay, or other minimum entitlements owed, and details on how and when the terminated employee will receive their final pay. This written termination notice solidifies the termination and is essential for legal purposes.

The employer must issue a Record of Employment, typically within five calendar days of the termination, as required by the Employment Insurance Act. This document is critical for employees to claim EI benefits. The reason for termination (such as shortage of work or dismissal with cause) must be accurately recorded, and the payment of outstanding wages, vacation pay, or other entitlements must be made within the required timeframe. In Alberta, this is within three days of termination.

    

Wrongful Dismissal and Constructive Dismissal

A wrongful dismissal lawyer can tell you if you may have been unlawfully terminated. Wrongful dismissal occurs when an employer terminates an employee without providing the notice or termination pay required by law or outlined in an employment contract.

In these cases, the employee has the right to seek compensation through a wrongful dismissal claim, which may include damages for lost wages, benefits, and sometimes additional compensation under common law. Courts evaluate wrongful dismissal claims by considering the length of service the employee has had with the same employer, the employee’s age, role within the company, and the time it might take to find a comparable job.

Constructive dismissal, on the other hand, occurs when an employer makes significant and unilateral changes to an employee’s working conditions, effectively forcing the employee to resign. Examples of this include substantial reductions in pay, demotions, drastic changes to job duties, or a toxic work environment. When an employee claims constructive dismissal, they argue that the employer’s actions breached the employment contract, leaving them with no choice but to leave. If proven, constructive dismissal is treated as a termination, entitling the employee to notice or termination pay as if dismissed without cause.

If you believe you have been wrongfully dismissed or have been forced to resign due to unfair treatment or significant changes to your job, seeking legal advice can help you understand your options and protect your rights. An employment lawyer will review your case and determine if your rights have been violated.

 

Can You Get EI if You Are Terminated Without Cause?

Yes, you can typically receive Employment Insurance (EI) benefits if you are terminated without cause in Canada. To qualify for regular EI, you must have lost your job through no fault of your own, and meet a few other requirements.

This includes having worked enough insurable hours. Generally, you need between 420 and 700 hours worked in the past 52 weeks or since your last EI claim. Your employer must also issue a record of employment (ROE) that indicates your reason for termination without cause. For termination without cause, the code should reflect “shortage of work” or a similar non-fault reason.

You can apply for EI as soon as possible after your last day of work. This also applies to casual workers who lost their jobs for reasons such as lack of available shifts or contract non-renewal. However, it is not a permanent solution. Individuals on EI must demonstrate that they are available and actively searching for suitable new employment during the benefit period.

    

Getting Justice

If you suspect your dismissal was unfair, wrongful, or discriminatory, our employment law firm is here to help you protect your rights and navigate your legal options.

We can review the circumstances of your dismissal to determine whether it violated employment standards, breached your employment contract, or infringed upon human rights laws. This includes assessing whether you were given adequate severance pay with our severance lawyers, notice or a valid reason for termination and whether your dismissal involved discrimination based on protected characteristics such as race, gender, age, disability, or other protected grounds covered under Alberta’s Human Rights Act.

By consulting our employment law firm, you can ensure your case is handled professionally, your rights are upheld, and you receive the fair compensation you may be entitled to. Get in touch today, and let us help you take the next steps with confidence.

The content of this article is intended to provide a general guide to the subject matter and should not be considered legal or other professional advice. Please discuss your situation with a lawyer or other professional to get detailed information regarding your specific circumstances. Refer to our Terms of Use for more details.

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