Termination Clauses in Employment Contract (Alberta)

A termination clause in an employment contract sets out what an employee will receive if their job ends.

In Alberta, termination clauses are common — but many do not meet Alberta Employment Standards Code requirements. When that happens, the clause may be unenforceable, and the employee may be entitled to more notice or pay than the contract suggests.

What Is a Termination Clause?

A termination clause is a section of an employment contract in Alberta that attempts to limit:

• How much notice or pay you receive if you’re terminated
• Whether benefits continue during the notice period
• What happens if you are dismissed without cause

Are Termination Clauses Enforceable in Alberta?

Only if they comply with Alberta’s Employment Standards Code.

A termination clause may be unenforceable if it:

• Provides less notice or pay than Alberta minimum standards
• Excludes required continuation of benefits
• Attempts to contract out of statutory protections
• Is unclear, ambiguous, or poorly drafted

What Happens If a Termination Clause is Unenforceable?

If a termination clause is unenforceable, an employee may be entitled to:

• Reasonable notice under common law, not just statutory minimums
• Severance pay in Alberta based on factors such as age, position, and length of service
• Continued benefits during the notice period

Termination Without Cause in Alberta

In Alberta, employers can terminate employment without cause — but they must provide:

• Proper working notice or
• Pay in lieu of notice that meets or exceeds employment standards

Should You Have a Termination Clause Reviewed?

You should speak to an employment lawyer if:

• You’re being asked to sign a new employment contract
• Your employer updated your contract mid-employment
• You’ve been terminated and offered notice or pay under a contract
• Your severance offer seems low or rushed

A lawyer can assess whether a termination clause actually holds up under Alberta law.

Get Advice Before You Sign or Accept a Severance Offer

Termination clauses can have serious financial consequences — but many do not work the way employers expect.

Before you sign an employment contract or accept a severance offer based on a termination clause, get clear legal advice.

Speaking with an employment contract lawyer in Alberta at Samfiru Tumarkin LLP can help clarify whether a termination clause is enforceable and what the law actually requires your employer to provide.