What Factors Actually Increase Severance Pay Amounts Under Alberta Law

Being fired may be shocking and traumatic. Most Alberta employees are informed that they will get a given severance payment and they think that it is fixed. Severance is not necessarily a single figure. The amount may vary in most of the cases depending on the actual law factors and the circumstances of your working history.

Others get termination pay that is the minimum amount that are required under the Alberta termination standards. There are others who may have far more in common law. This is the reason why two employees who have similar salaries may end up leaving with entirely different severance packages.

To know what is adding to severance pay in Alberta, then you must go beyond the fundamentals. It is important to know what the law deems as fair and what employers omit in the initial offer.

This guide also outlines the major considerations that can raise severance payment and what you need to scrutinize before you accept a termination package.

Alberta severance is not always just the minimum

Most employers in Alberta use severance as termination pay. Employment regulations provide a minimum notice or pay instead of notice. Such minimum is largely based on the duration of employment with the employer. To certain workers it is a minimal amount. It may be only a few weeks.

However minimum standards are not always the conclusion. Under common law reasonable notice entitles many employees to more. This is commonly referred to as common law severance. It is founded on equity and the fact of securing a new job. It may considerably exceed the minimum amount.

This is the point of confusion of workers. The minimum is usually the first to be offered as they are cheaper. There are those workers who take it fastly due to the fact that they need the money and they need to get to the next point. Others accept due to the fact that they are not aware that they can bargain.

If you want a quick estimate of what you might be owed, a Severance pay calculator for Alberta workers can help you understand the range. It is not a final answer but it can show whether your offer looks low.

The more you know about severance factors, the easier it is to protect yourself from an unfair deal.

Length of service is important but it is not the only factor

Majority believe that severance is determined by the years of service. A significant determinant is length of service and it tends to prolong the period of notice. Generally the longer one had been working with the company the greater amount of severance one can be entitled to.

But it is not the only factor. Even employees of the same years of service may be awarded different severance. This is due to the fact that common law considers the entire situation.

Nevertheless, long service employees usually have a better severance case. Employers can also become aware of the fact that long service workers will be more demanding towards a low offer. This could result in improved settlements.

There is more than there can be to length of service. There were employees who were initially contractors but later became full time employees. Others had service interruption but went back to the same employer. This information can be important in the computation of entitlements.

When you have served the company long enough, then you should not make the assumption that the first offer is fair. One of the most evident factors, which can increase severance pay, is long service.

Your age can increase reasonable notice

One of the major factors under the common law severance is age. The elders are mostly given notice due to the fact that they might take a long time to secure a similar job. The employers have the understanding that job seekings may become more difficult at the end of a career among the skilled employees.

It does not imply that young workers are not capable of getting good severance. They can. However, older workers can present a better case of why they should have a greater notice period.

The age factor is even significant with the addition of other factors such as long service and special position. As an example, a 50s or 60s worker who has worked in the same position might be gaining a more difficult job-searching time.

A reasonable transition is supposed to be supported by severance. Severance may go up in case the job market demands that transition.

When you are an older employee, do not allow an employer to rush you into quick signature. It might be your age and add to what you are entitled to.

Job position and level of responsibility matter

Severance can be influenced by your job in the firm. The nature of the position as well as the degree of responsibility is a factor that is often taken into account by courts in determining the reasonable notice.

Older employees can get more severance as jobs of the same nature are difficult to get. A manager, director, or executive might require additional time to get such a position. That can extend the period of notice.

Severance can also be enhanced through specialized jobs. In case your work demanded any special skills, certifications or industry know-how, then you might not be able to earn that money fast. An open position in a general position that has numerous vacancies can result in a less lengthy job hunt. A niche role may not.

Although what you say in your title may be very plain, your duties count. Other employees are assigned a simple title yet they deal with significant duties. In the event that your position was vital or very competent, it may reinforce your severance stance.

There are cases that when employers minimize your role and offer you less. But your real track record of work can justify more severance.

The availability of similar jobs can change outcomes

The ability to find similar employment easily is one of the largest practical severance factors. In case the employment prospects are high and there are quite a number of vacancies, then an employer can say that you will get a job very soon. Should the market be slow, then you can claim better of more notice.

This aspect is highly practical in Alberta since industries are subject to uprising and downfall. Cycles in oil and gas may influence employment. Building and trades may change. The job in the office may be competitive. There can be a freeze in hiring of some sectors.

Location matters too. In a smaller city in Alberta, it is possible that there are fewer similar functions. It may have more opportunities but there is also more competition in Calgary or Edmonton.

In case your firing occurred in a recession your severance can be increased. This is due to the fact that the law understands that it is not always easy to get a job.

It is due to this that timing is an issue. When the layoff is performed during a slow season this will result in a job search that may take longer compared to a layoff at times when hiring is at its peak.

Employment contracts can limit severance but not always

Most of the employees of Alberta have employment contracts containing termination clauses. Employers usually use these provisions and tend to offer only the minimum severance. Sometimes they work. Sometimes they do not.

The termination clause should be in a written form and adhering to legal guidelines. It can be unenforceable in case, it is unclear, unfair or they contravene employment standards. In case this is incapable of enforcement, common law reasonable notice may be pursued in its place.

This is among the largest causes of an increment in severance amounts. When an employer suspects that the amount of severance is restricted in the contract, then he may provide the minimum. However, when the clause fails, then the worker might be in for a lot more.

Contracts are also subject to change with time. The terms may change due to a promotion, new position, or a new contract. Other workers enter into new contracts without understanding that they will lose their rights to severance.

It is always prudent to look at what you have signed and at what time before accepting a package. A contract clause is not necessarily the last word.

Bonuses benefits and other compensation can increase the total payout

A large proportion of employees are salary oriented. However, severance is sometimes more than salary. Bonuses, commissions, benefits and other compensation types can be included too.

In case you used to get bonuses or commissions on a regular basis, you might claim them in the course of the notice period. It may also be true in the case of car allowances, RRSP matching or other benefits.

Benefits are also important. Long-term health cover, dental and insurance may be of use. Severance package can be not as valuable as it may seem in case of benefits terminated at once.

Other employers provide continuation of salary as opposed to a lump sum. That might be a good thing but might have conditions. As an illustration, their payment can be suspended in case you get a new job. That is likely to compromise your bargaining skills.

A severance package must not be considered a number in a letter, but a full compensation plan. The real value may be greater when you consider all types of remuneration.

Final Thought

Severance compensation in Alberta is not fixed and it is not fair in the first offer. This value may go up depending on actual legal considerations such as tenure, age, grade and presence of equivalent work. Contracts can also significantly take a big part and in some instances they do not limit the severance the way the employers purport.

The most effective method is to go through the specifics at a slower pace. See the entire compensation package in terms of bonuses and benefits. Know whether your offer is only to the minimum standards or a reasonable amount of notice.