Termination Without Cause - FAQ

What is Termination Without Cause?

As described in our other blog post, termination with cause is a high hurdle to meet. Therefore, most terminations are “without cause”. This means there has been no misconduct serious enough to end the employment relationship.

What is the employer required to do?

In order to end the employee’s employment, the employer must give written notice of their termination. They can provide notice that it will be working notice (where the employee keeps working for some period of time), or instead of working notice, an equal amount of pay called compensation for length of service, or severance in lieu.

Employers have the option to give a combination of both notice and pay.

Does the Employer need a reason for termination?

Termination without cause occurs where an employee is fired or let go for reasons that are not related to serious misconduct. In these situations, an employee can be asked to leave with no reason given for the termination. A company may fire an employee due to downsizing, restructuring, or personal fit. However, an employee cannot be fired for discriminatory reasons.

 What if the employee is on leave or vacation?

Employers can write to an employee to let them know their job will end by a certain date. Employees must be able to work and earn income for the duration of the notice period. If an employee is on vacation, leave, temporary layoff, strike or lockout, or unavailable for work due to medical reasons, notice cannot begin. Once an employee returns to work, then the notice period may begin.

How much notice (or pay in lieu) does the Employee receive?

The first place to look is the employment contract (if there is one). If there is a termination provision, and if that termination provision is enforceable, it will govern. Often times these provisions are not enforceable.

The minimums owing are set out in the BC Employment Standards Act (the “Act”). However, this might not be the maximum amount owing. The maximum may be something referred to as the “common law notice period”, which is determined by the courts.

The following table sets out the minimum notice /pay required in the Act:

Length of employment Amount required

3 months or less No notice and/or pay

More than 3 months 1 week of notice and/or pay

More than 1 year 2 weeks of notice and/or pay

More than 3 years 3 weeks of notice and/or pay, plus 1 week of

notice/pay after each additional year of

employment (to a maximum of 8 weeks)

When is notice or compensation not required?

Some examples of when notice or compensation is not required include where the employee:

• Quits, retires, or is fired for just cause

• Has not been employed for 3 consecutive months

• Works on an on-call basis doing temporary assignments that they can accept or reject

• Cannot perform the work because of unforeseeable event or circumstance (other than bankruptcy, receivership or insolvency)

• Is employed at one or more construction sites for an employer whose main business is construction

• Refuses reasonable alternative work

• Is a teacher employed by a board of school trustees

• Is hired for a definite term or for specific work to be completed in 12 months or less.

This is not an exhaustive list. Where an employer has just cause, they are not required to give notice or pay.

What about Employment Insurance (EI)? 

An employee who is terminated without cause is entitled to receive Employment Insurance. Employees may not receive severance pay and EI simultaneously. Once the severance or notice period has expired, the employee may apply and receive EI benefits. 

What can the employee do if termination without cause?

If an employee has been terminated without cause, and hasn’t been given a proper notice period or severance package, the employee can file a wrongful dismissal claim against the employer.

We highly recommend anyone contemplating a termination (employers and employees) seek legal advice as to the property amount of notice or severance.

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Written by Sara Albert, Albert & Co. Law LLP, January 8, 2025.

© Albert & Co. Law LLP. The contents of this article do not constitute legal advice. Readers should seek legal advice in relation to their own specific circumstances.