Termination Clauses in Employment Contract (BC)

A termination clause is the part of an employment contract in BC that explains what happens if your employment ends.

In British Columbia, termination clauses are frequently unenforceable — even when they look clear on paper. When that happens, employees may be entitled to far more compensation than their employer offered.

This page explains how termination clauses work in BC, why so many fail, and what your rights may be.

What Is a Termination Clause?

A termination clause sets out:

• How much notice or pay you receive if you’re terminated without cause
• Whether benefits continue during the notice period
• Whether your severance is limited to employment standards minimums

Termination Clauses vs BC Employment Standards

In British Columbia, termination clauses must meet or exceed the minimum requirements of the Employment Standards Act (ESA).

A clause may be unenforceable if it:

• Provides less than ESA minimum notice or pay
• Limits benefits in a way the ESA does not allow
• Is ambiguous or internally inconsistent
• Attempts to contract out of statutory protections

Are Termination Clauses Enforceable in BC?

Sometimes — but many are not.

BC courts interpret termination clauses strictly and in favour of employees. If a clause is unclear, contradictory, or improperly drafted, it may be struck entirely.

When that happens, the employee’s entitlement is determined by common law, not the contract.

Common Problems With Termination Clauses in BC

Termination clauses often fail because they:

• Refer vaguely to “minimum notice” without defining benefits
• Combine multiple termination scenarios in confusing ways
• Conflict with BC ESA requirements
• Were copied from templates used in other provinces
• Were signed without proper legal review

What Happens If a Termination Clause is Unenforceable?

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

• Common law severance, not just ESA minimums
• Severance pay in BC based on age, length of service, role, and availability of similar work
• Significantly more pay than the employer initially offered

Termination Clauses and “Without Cause” Dismissals in BC

Most termination clauses apply when an employee is terminated without cause in BC.

If you are dismissed without cause and:

• Your termination clause is invalid, or
• Your employer did not follow the contract properly,

you may have a wrongful dismissal claim.

Employers often rely on clauses that do not legally protect them.

Should You Trust a Termination Clause Just Because You Signed It?

No.

In BC, signing a contract does not guarantee it’s enforceable. Courts regularly strike termination clauses years after they were signed.

This is why employees should:

• Get contracts reviewed before signing, and
• Get legal advice before accepting a severance offer

What to Do If You’re Terminated in BC

If your employment ends and your employer relies on a termination clause:

• Do not assume the clause is valid
• Do not accept a severance offer without review
• Do not rely on HR explanations alone

A short legal review can dramatically change the outcome.

Get Advice About Your BC Termination Clause

Termination clauses are one of the most litigated issues in BC employment law — and one of the most misunderstood by employees.

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