Bardal Factors Explained: How Courts Calculate Severance in Canada

When Canadian courts determine how much severance an employee is owed after termination without cause, they do not rely on employment standards minimums alone.

Instead, courts apply what are known as the Bardal factors — a set of legal principles that guide how judges assess reasonable notice and common law severance.

Understanding the Bardal factors helps employees make sense of severance offers and evaluate whether an employer has provided what the law actually requires.

What Are the Bardal Factors?

The Bardal factors come from a landmark Canadian court decision, Bardal v. Globe & Mail Ltd., and form the foundation of how courts calculate reasonable notice under common law employment law.

Courts apply the factors to assess the full employment context, rather than relying on a single formula or one factor in isolation.

The Four Bardal Factors Courts Consider

When applying the Bardal factors, courts focus on four key considerations:

1️⃣ Age of the Employee

Courts often award longer notice periods to older employees, particularly where re-employment may be more difficult.

2️⃣ Length of Service

Longer service generally increases severance entitlement, but courts do not treat length of service as decisive on its own. Even short-service employees may be entitled to months of severance in the right circumstances.

3️⃣ Position and Level of Responsibility

Senior, managerial, executive, or highly specialized roles often attract longer notice periods, especially when comparable positions are limited.

4️⃣ Availability of Comparable Employment

Courts consider how realistic it is for an employee to find similar work, taking into account:

• Industry conditions
• Economic climate
• Specialized skills
• Geographic limitations

This factor frequently plays a significant role in severance outcomes.

How Courts Apply the Bardal Factors

Courts do not assign fixed weights to the Bardal factors or apply them mechanically.

Instead, judges:

• Consider all four factors together
• Weigh them in context
• Adjust the notice period based on real-world employment conditions

As a result, two employees with similar service histories can receive very different severance awards.

Bardal Factors and Common Law Severance

The Bardal factors underpin common law severance across Canada.

While employment standards legislation sets minimum notice requirements, courts rely on the Bardal factors to determine an employee’s full legal entitlement.

In many cases, severance pay assessed using the Bardal factors exceeds statutory minimums by a wide margin.

Is There a Bardal Factors Calculator?

Courts do not use a fixed formula when applying the Bardal factors. Each case depends on its own facts and employment context.

That said, tools like the official Severance Pay Calculator use real court decisions and common law principles — including the Bardal factors — to provide a practical estimate of what an employee may be entitled to receive.

The calculator helps employees:

• Understand realistic severance ranges
• Compare an employer’s offer to common law outcomes
• Decide whether further legal review makes sense

Bardal Factors by Province

The Bardal factors apply across Canada, but courts may emphasize certain factors differently depending on the province.

For province-specific guidance, see:

• Bardal Factors in Ontario
• Bardal Factors in British Columbia
• Bardal Factors in Alberta

When the Bardal Factors Point to a Wrongful Dismissal Claim

In Canadian employment law, wrongful dismissal usually means an employer failed to provide reasonable notice or severance, not that the employer acted improperly.

When an employer terminates an employee without cause and provides severance that does not reflect the Bardal factors, the termination may qualify as wrongful dismissal.

Once employers understand their legal exposure through this lens, most claims resolve through negotiation, not court.

Why Employers Often Misapply the Bardal Factors

Employers commonly:

• Rely on employment standards minimums
• Use internal severance guidelines
• Overlook re-employment realities

Courts, however, focus on the full employment context — not internal policies or minimum standards alone.

When employers misapply the Bardal factors, employees often accept severance that falls well below what courts would award.

How an Employment Lawyer Uses the Bardal Factors

An experienced employment lawyer:

• Reviews all four Bardal factors together
• Compares outcomes from similar court decisions
• Assesses whether a termination clause is enforceable
• Confirms whether a severance offer reflects common law standards

This review helps ensure that a severance offer aligns with how courts actually apply the Bardal factors.

Get Advice Before You Accept a Severance Offer

Once you sign a severance agreement, you usually give up the right to pursue additional compensation.

Before accepting an offer:

• Understand how the Bardal factors apply to your situation
• Use the Severance Pay Calculator to estimate your entitlement
• Get clear legal advice on whether the offer reflects common law outcomes

📞 Contact Samfiru Tumarkin LLP to review your severance offer and confirm what the law requires your employer to pay.

If you were fired or laid off in Alberta, your employer may say they’ve met their legal obligations by offering the minimum severance required under Alberta law. In many cases, that claim is misleading — and costly.

Alberta courts entitle most non-unionized employees to common law severance, which is often far greater than the minimum notice or termination pay required under the province’s Employment Standards Code.

When you understand how this compensation works in Alberta works, you put yourself in a position to challenge a low offer — and recover what the law actually requires your employer to pay.

What Is Common Law Severance in Alberta?

Alberta courts determine common law severance as the compensation a non-unionized employee is legally owed when an employer terminates them without cause.

Judges — not government formulas under Alberta’s ESC — decide how much severance an employee is owed.

As a result, severance in Alberta is often significantly higher than what employers initially offer.

Common Law Severance vs. Employment Standards Severance in Alberta

This distinction is critical — and frequently misunderstood.

Employment Standards Severance (minimum standards)

Alberta’s ESA sets out minimum notice or termination pay, primarily based on length of service. These are the bare minimums employers must provide.

Alberta Emloyment Standards can only enforce these minimum amounts — not your full legal entitlement.

Common Law Severance (your full legal entitlement)

Under Alberta common law, courts assess severance using a broader set of factors, including:

• Age
• Length of service
• Position and level of responsibility
• Availability of comparable employment

Because of these factors, there is no fixed formula. Courts routinely award severance far beyond statutory minimums — in many cases approaching 24 months’ pay.

How Is Common Law Severance Calculated in Alberta?

Alberta courts apply long-standing common law principles — similar to the Bardal factors used across Canada — to assess the full employment context, not just length of service.

For example:

• Older employees often receive higher severance, especially if re-employment is difficult
• Senior, managerial, or specialized roles typically attract longer notice periods
• Even short-service employees may be entitled to months of severance, not weeks

This is why two Alberta employees with similar service histories can receive very different severance outcomes.

What Is a Typical Common Law Severance Package in Alberta?

There is no standard severance package under Alberta common law. However, as a general guideline:

• Short-service employees may still be owed several months of severance
• Long-service employees may be entitled to a year or more of compensation
• Older employees often receive enhanced severance, particularly if job prospects are limited

Because every case turns on its own facts, the only way to assess fairness is to review all legal factors together.

Why Most Severance Offers in Alberta Are Too Low

Most Alberta employers base severance offers on:

• Employment standards minimums
• Internal company policies
• Cost-control considerations

They may:

• Describe the offer as “standard”
• Impose short deadlines
• Claim the offer is non-negotiable

But none of this overrides your common law rights.

Accepting a severance package without understanding your Alberta common law entitlement often means leaving significant compensation on the table.

Can an Employment Contract Limit Common Law Severance in Alberta?

Sometimes — but not always.

Many Alberta employment contracts include termination clauses that attempt to limit severance to employment standards minimums. However, courts frequently invalidate these clauses if they are:

• Poorly drafted
• Ambiguous
• Inconsistent with the Employment Standards Code

When a termination clause fails, the law overrides the contract and entitles you to full common law severance.

When It Becomes a Wrongful Dismissal Claim in Alberta

In Alberta, wrongful dismissal usually means an employer failed to provide proper notice or severance — not that the employer acted maliciously.

When an employer terminates you without cause and underpays your common law severance, the law often treats the termination as wrongful dismissal.

Once employers understand their legal exposure, they resolve most wrongful dismissal claims in Alberta through negotiation, not court.

What Does Common Law Severance in Alberta Include?

It may include:

• Pay in lieu of notice
• Continued benefits
• Bonuses, commissions, or incentive pay
• In some cases, compensation for lost pension or stock options

Many Alberta employees receive far less severance than the law requires.

How Our Alberta Severance Lawyers Help

At Samfiru Tumarkin LLP, we’ve helped tens of thousands of Canadians — including employees across Alberta — challenge low severance offers and secure proper compensation.

Our employment lawyers in Alberta:

• Review your severance offer and employment contract
• Calculate your Alberta common law entitlement
• Negotiate directly with your employer
• Resolve most claims without going to court

Common Law Severance Applies Across Alberta — and Canada

Common law severance applies to non-unionized employees throughout Alberta, but similar principles apply nationwide.

For broader context, see:

• Common Law Severance in Canada
• Severance Pay Alberta
• Severance Pay Canada

Get Legal Advice Before You Accept a Severance Offer

Once you sign a severance agreement, you usually give up your right to pursue full compensation.

Before accepting any offer:

• Understand your Alberta common law severance rights
• Get clear legal advice
• Find out what the law requires your employer to pay