Am I entitled to my bonus if I lose my job in Alberta?
The short answer is yes. When non-unionized employees in Alberta are fired without cause or let go, they are entitled to any bonus they earned, along with all of their pay and wages.
Depending on your employment contract, you might be owed your bonus on a full or pro-rated basis over the course of the severance period.
Other considerations include:
- Whether or not the bonus is non-discretionary
- If you must be actively employed with the company when the bonus comes due to qualify for a payout
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WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.
What is included in wages?
In Alberta, wages include:
- Salary
- Pay
- Non-discretionary bonuses
- Money paid for time off instead of overtime pay
- Commissions and other reimbursements for work
What isn’t included in wages?
Wages in Alberta don’t include:
- Vacation pay, overtime pay, or general holiday pay
- Severance pay
- Tips or gratuities
- Expenses or allowances
- Payments made as gifts
- Bonuses at the discretion of the employer that aren’t related to hours of work, production, or efficiency
What is included in my final paycheck?
Regardless if you are fired, let go, or quit, your final paycheck should include all wages earned inclusive of:
- Overtime pay
- Accrued statutory holiday pay
- Unpaid vacation pay and expense reimbursements
- Bonuses
- Commissions
When should I receive my final paycheck?
Employers in Alberta have two options when it comes to providing non-unionized workers who are fired without cause or let go with their final paycheck.
The company must provide the final paycheck within 10 consecutive days after the end of the pay period in which the termination occurred or within 31 consecutive days after an individual’s last day of employment.
What if my employer fires me for just cause, do I still get my bonus?
You might be owed your bonus entitlements if they came due prior to your dismissal. However, you should carefully review the bonus agreement in your employment contract.
If your employer fires you for just cause, you don’t receive a severance package and you can’t access to Employment Insurance (EI) benefits. This makes claiming bonus entitlements that would have accrued over the severance period difficult.
The reality is that most terminations for just cause in Alberta aren’t valid. Employees rarely reach the level of insubordination or misconduct required to justify this type of dismissal.
LEARN MORE
• Bonuses and Severance Pay
• Do get severance if I quit?
Lost your job? Speak to an employment lawyer
If you are fired or let go for any reason, and are unsure if you are entitled to your bonus, contact the experienced employment law team at Samfiru Tumarkin LLP.
Our Alberta employment lawyers for Calgary and Edmonton can review your situation, enforce your workplace rights, and ensure that you receive the compensation you are owed.