Common Law Severance in Alberta: How Much Are You Really Owed?

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?

Courts apply the Alberta Bardal factors to assess the full employment context — not just how long you worked for an employer.

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