Severance Pay and Termination Clause Reviews in Calgary

Have you lost your job and your employer offered you an unreasonable severance package? Or are you starting a new job and the severance provisions of your agreement lack clarity?

It’s hard to know what you’re entitled to by way of severance pay, whether you’re overwhelmed by your termination, or you’re just starting a new job. Knowing how to negotiate, assess, or review a severance package or termination clause be difficult when your agreement is dense with legalese.

In almost every case, you are entitled to compensation when you lose your job. When you take action within the time requirements, you can make sure you get what your employer rightfully owes you. And yes, there is often a time window.

What do you do if you have been offered a severance package?

Sometimes employers will offer you a package that only meets the statutory minimum amount, so it’s essential to understand the terms and conditions of your severance agreement. A severance review from a Calgary employment lawyer can help you find clarity and peace of mind.

Do I get a severance package if my company is bought out?

A common situation that many employees face in Calgary’s unique workforce is anticipating termination or layoff as a result of their company being involved in a merger, acquisition, or amalgamation. Employees may feel like their position is deemed is likely to be redundant or targeted for elimination. Even in situations where this happens, you are still usually entitled to compensation which goes beyond a bare minimum package that a new company may be trying to roll out to employees.

How severance packages are calculated in Calgary


Typically the older the employee, the greater the amount of severance pay.

How long you worked there

The general rule of thumb is that for every year you have worked for your employer, you’re entitled to one month of salary. This varies from case-to-case, but is usually fairly accurate. Generally, the longer your tenure, the greater you severance.

How long it might take you to find similar work

Depending on the industry you work in and the availability of similar jobs at your experience level, this is an important detail in negotiating your severance package. Soft employment markets contribute to greater severance amounts.

Character and Scope of Employment Role

Typically, the more senior and managerial you position is, the greater your severance entitlement is.

What is usually included in a severance package?

Unless you employment contract says otherwise, your package should include all components of compensation where they are applicable, such as:

  • Salary, wages, and benefits
  • Bonuses and stock options are likely to be vest and become payable during the entire period.
  • Transportation, vehicle, cell phone, allowances
  • Pension, RRSP matching

Would you say your severance package is reasonable? If not, can you negotiate for a better severance package?

The answer is not always a clear-cut yes or no, but as Calgary Employer Lawyers, we can help you review what’s included in your severance package with regard to your legal entitlements. We can determine if any critical parts of compensation that you’re entitled were left out.

Don’t Settle For Less

Trust Our Calgary Employment Lawyers for Severance Pay and Termination Clause Reviews

We particularly hate when we see long-term employees restricted to the bare minimum of severance pay that the Alberta Employment Standards Code sets out. Rather than receiving their reasonable notice or pay-in-lieu, employees fall in the hands of contractual terms. All severance and termination provisions are worth having reviewed by an independent employment counsel at the time of hiring.

Employers often bury termination policies in heavy language and fine print in employment agreements. So before signing your employment agreement, make sure to talk to us and find out how you can protect yourself and your family.

Seeking legal counsel can feel daunting, but here at YYC Employment Law Group, we work exclusively with employees. We are here to help you understand your severance rights.

Don’t settle for less.

A New Era of Employment Calgary Lawyers. We’re Different.