What to do if you have been dismissed without cause?

Termination without cause (termination without reason) is one of the most common forms of employment termination in Alberta and can be very stressful for an employee. Understanding your rights and knowing the right steps to take after such a termination is critical to protecting your interests and obtaining the compensation you are entitled to. This article discusses what termination without cause means, what rights employees have in Calgary, and how to proceed in such a situation.

What is dismissal without cause?

Dismissal without cause in Alberta means that an employer terminates an employee's employment without serious grounds, but is required to provide proper notice or pay compensation. Unlike dismissal with cause, no specific reasons need to be given.

Key features

  • Legality of the procedure An employer can dismiss an employee without cause if they comply with the Employment Standards Code and pay compensation. Important: dismissal cannot be based on discriminatory grounds (age, gender, race, etc.).

  • Difference from dismissal with cause Dismissal with cause requires evidence of serious misconduct, and no compensation is paid. Without cause, on the other hand, no explanation is required, but compensation is mandatory.

Minimum rights under the Employment Standards Code

Notice periods

  • 0–3 months: no notice required
  • 3 months – 2 years: 1 week
  • 2–4 years: 2 weeks
  • 4–6 years: 4 weeks
  • 6–8 years: 5 weeks
  • 8–10 years: 6 weeks
  • 10+ years: 8 weeks

Compensation in lieu of notice

The employer may:

  • provide actual work,
  • pay compensation for the notice period,
  • or combine these options.

The amount of compensation must be equal to what the employee would have earned during the notice period.

Common law rights

The principle of “reasonable notice”

  • Above the minimum standards, the employee may be entitled to greater compensation under case law (court law).
  • The amount of “reasonable notice” is determined on a case-by-case basis.

Bardal factors:

  • Nature of the job: the higher the position, the longer the job search period
  • Length of service: longer service means a longer notice period
  • Age: older employees receive higher compensation
  • Availability of work: the difficulty of finding similar work

Maximum compensation period usually does not exceed 24 months.

Compensation components

The package may include:

  • Base salary
  • Bonuses, commissions
  • Benefits (health insurance, dental)
  • Pension contributions (RRSP, etc.)
  • Options/shares
  • Vacation pay, overtime
  • Anything else provided for in the contract

Everything that the employee would have earned during the reasonable notice period is listed.

Wrongful dismissal

  • Definition: when an employer fails to provide sufficient notice or compensation upon termination without cause. This does not mean that the dismissal itself is illegal — it is only a procedural violation.
  • Main types:
  • Insufficient compensation (minimum wage instead of the actual package due)
  • Wrongful dismissal “for cause” (without adequate grounds)
  • Constructive dismissal (significant change in conditions without the employee's consent)

Constructive dismissal

What it is: When an employer makes significant changes to your working conditions without your consent. Formally, this is not resignation, but “dismissal” by the employer.

Examples:

  • Significant reduction in salary (20%+)
  • Cancellation of bonuses without consent
  • Reduction of benefits
  • Demotion or change of duties
  • Forced transfer or relocation
  • Creation of a hostile (toxic) environment

Courts use an objective test: Would a reasonable person in your position consider continuing to work intolerable?

Discrimination and human rights

The Alberta Human Rights Act prohibits dismissal based on:

  • Race, color, ethnic origin,
  • Religion,
  • Sex, gender identity,
  • Sexual orientation,
  • Age,
  • Disability,
  • Family status,
  • Pregnancy.

If you were fired for one of these reasons, you can file a discrimination complaint.

Employment Insurance (EI)

  • EI eligibility: If you were fired without cause, you are eligible for EI because you did not lose your job through your own fault.
  • Interaction with compensation: EI is not paid for the same period as compensation (compensation is used first, then EI).
  • Deadlines: Apply as soon as possible — you have 4 weeks from the date of dismissal, even if the Record of Employment has not yet been provided.

Practical steps after dismissal

  1. Obtain written confirmation Ask in writing for the reasons and compensation. Do not sign any documents immediately!
  2. Keep all documents Employment contract, pay slips, correspondence, etc.
  3. Do not accept the first offer Employers often offer the minimum — you may be entitled to more.

Assess the situation

  • Check your employment contract (are there any restrictions on your rights)
  • Use online compensation calculators (as a guide)
  • Document all circumstances, especially changes prior to dismissal

Consult a lawyer

  • When: As soon as possible after termination, especially before signing any documents.
  • Where: In Calgary, most firms offer a free initial consultation.
  • What to expect:
  • Analysis of the situation and documentation
  • Calculation of realistic compensation
  • Proposed course of action (negotiation, litigation)

Negotiation and litigation

  • Before negotiation:
  • Determine your target amount (based on Bardal, etc.)
  • Gather evidence of your achievements and market challenges
  • Negotiating through lawyers is often more effective
  • Litigation or alternatives:
  • If no agreement can be reached — mediation, arbitration, or civil lawsuit
  • Time limits for filing a lawsuit (act quickly!)
  • Most cases end in a settlement, but they can take a long time

Finding a new job and compensation

  • Obligation to minimize losses: The employee must look for a new job during the compensation period (this may reduce the amount of compensation).
  • Impact: If you find a job, the remaining compensation will likely be reduced.

Special situations

  • Group dismissals: (50+ employees) — additional requirements for notifying the authorities, but individual compensation remains the same.
  • Employees with disabilities: may require a longer notice period.
  • Older employees: compensation is usually higher.

Payment for legal services

  • Contingency fee: 25–30% of the compensation won (payable only if successful).
  • Hourly rate: $300–750/hour depending on experience.
  • Fixed rates: possible for some services (e.g., review of compensation package).

Tax implications

  • Compensation is most often taxed as standard income, but there are nuances — consult with a tax professional.
  • Payment in installments may reduce the tax burden (check if this option is available).

A thorough understanding of your rights and timely legal support will help you get fair compensation and protect your interests if you are terminated without cause in Calgary.