So… you received a severance package? Should you get it reviewed by an employment lawyer?
The quick answer is yes! Severance packages are delivered to non-unionized employees at a time when they are highly emotional, and employees are sometimes uneducated about their employment rights. Some employees are only entitled to termination pay under the Employment Standards Code of Alberta, while others may have a case for increased severance under the common law in Alberta. The only way to know for sure is to have the severance offer reviewed by a lawyer who specializes in employment law.
What Is Termination Pay In Alberta?
Termination pay is the minimum amount of notice or pay in lieu of notice that an employer must pay a non-unionized employee when terminating that employee without cause. The exact amounts of termination pay required are legislated under the Employment Standards Code in Alberta. If the termination is for cause and it’s justified, the employer may not owe you any termination pay or severance pay.
What Is Severance Pay In Alberta?
Severance pay is an additional amount, over and above the termination pay, which an employee may be entitled to, by virtue of the common law or by way of their written employment contract with the employer. This amount is also sometimes referred to as a “retiring allowance”.
Factors to consider for determining Severance Pay?
- Was termination for cause or without cause;
- How long has the employee worked for the employer;
- The employee’s age;
- The industry involved;
- The type of work;
- The employee’s work title;
- The employee’s responsibility (manager vs employee); and lastly
- The employment market and ability to find a new job.
Proper components of a Severance Offer?
A properly considered severance offer should include many other important components, not just a lump sum payout. Make sure you are getting your offer reviewed to ensure that you are receiving all varied forms of compensation and other assistance you may be entitled to.
Signing a Release
It is very important to not sign any release until you have had your severance offer reviewed. Once you sign that release, you no longer have the ability to sue your employer for any damages arising from your employment. Many employers push employees to sign quickly and set short deadlines. Simply tell the employer you will need some time to consult with legal counsel and contact me for a flat fee review of your severance package.
