Termination pay in Alberta is the wages an employee would have earned working their notice period, from 1 week after 90 days of service up to 8 weeks after 10 years. Employers can give written notice, termination pay or a mix of both, and nothing is owed for just cause or jobs of 90 days or less.
These are the Employment Standards Code minimums, as explained on the Government of Alberta's termination and lay-off page in October 2026. A contract or the courts can award more, which is what people usually mean by severance.
Notice or pay by length of service
| Length of employment | Minimum employer notice or pay |
|---|---|
| 90 days or less | None |
| More than 90 days but less than 2 years | 1 week |
| 2 years but less than 4 years | 2 weeks |
| 4 years but less than 6 years | 4 weeks |
| 6 years but less than 8 years | 5 weeks |
| 8 years but less than 10 years | 6 weeks |
| 10 years or more | 8 weeks |
Notice has to be in writing, addressed to the employee and include a termination date. If someone carries on working past that date, the notice is void and you have to start again. Rehiring after a break of less than 90 days keeps the original start date, and so does a change of ownership.
How to calculate termination pay
- Find the notice period from the table.
- Work out what the employee would have earned for regular hours over that period.
- If wages vary, average them over the last 13 weeks the employee worked before termination. Only count weeks they worked, which needn't be consecutive.
- Leave out overtime pay, general holiday pay, vacation pay and anything that isn't wages for regular hours.
- Add vacation pay and any other earnings owed separately on the final pay.
When no notice or termination pay is owed
- dismissal for just cause
- employment of 90 days or less
- construction or brush clearing work
- seasonal jobs ending with the season, or a definite term or task of 12 months or less
- casual employees who can choose whether to work
- refusing reasonable alternate work during a layoff, or not returning within 7 calendar days of a recall
Just cause has a high bar. Alberta lists theft, fraud, harassment and wilful disobedience as examples, and says temporary illness, personality conflict and intoxication on its own aren't just cause. The burden of proof sits with the employer.
The layoff trap
Here's the rule that turns layoffs into terminations without anyone noticing. A temporary layoff in Alberta can last at most 90 days in a 120-day period. If the employee hasn't resumed work, they're treated as terminated on the 91st day and termination pay is owed if they're entitled to it. A valid layoff notice has to be in writing, say it's temporary and include sections 62 to 64 of the Code. The clock can be extended only if you keep making regular payments such as wages or benefits and the employee agrees.
To bring someone back, serve a written recall notice telling them to return within 7 calendar days. You can hand it to them, leave it at their address with someone who appears to be 18 or older, or send it by mail or registered mail.
Deadlines for the final pay
Final earnings, including termination pay, are due within 10 consecutive days after the end of the pay period in which employment ended, or 31 consecutive days after the last day of employment, whichever the employer chooses. During the notice period you can't cut wages or other terms, or make someone use vacation or banked overtime unless agreed in writing.
Who you can't terminate
The Code protects some situations outright. You can't end the employment of, or lay off, someone because they're entitled to or on maternity or parental leave, because they face a wage garnishment, because they've given or might give evidence under the Code, or because they've asked for something they're entitled to under it. Starting any job-protected leave is protected too, unless the business itself is suspended or closed. Human rights law sits on top of all of this.
If the business is suspended while someone is on leave and then restarts within 52 weeks of the end of that leave, you must reinstate them or offer alternative work at no less than the same pay and benefits.
Group terminations
Ending the jobs of 50 or more employees at a single location within a 4-week period needs at least 4 weeks' written notice to the minister responsible for Employment Standards, on the Notice to Minister of Group Terminations form. Each employee still gets their own individual notice.
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Resignations
Employees owe notice too: 1 week if they've worked more than 90 days but less than 2 years, and 2 weeks after 2 years. If they resign and you'd rather they left straight away, you pay out their notice, capped at what you'd have owed them as employer notice.
My verdict
Treat the table as the floor. Write the notice correctly, calculate on the 13-week average and track every layoff against the 90-day limit, because that's where surprise claims come from. If you also employ in Ontario, compare termination pay in Ontario, and see constructive dismissal before changing someone's pay or role.
Frequently asked questions
How much termination pay is required in Alberta?
From 1 week for more than 90 days of service up to 8 weeks for 10 years or more, based on the wages the employee would have earned in that notice period.
Is termination pay the same as severance in Alberta?
No. Termination pay is the Code minimum. Severance is determined under common law or a contract and isn't required by the Employment Standards Code.
How long can a temporary layoff last in Alberta?
At most 90 days in a 120-day period. The employee is treated as terminated on the 91st day if they haven't resumed work.
Is overtime included in termination pay in Alberta?
No. Termination pay only uses wages for regular hours and leaves out overtime, general holiday pay and vacation pay.
Can an employer make me use vacation during my notice period in Alberta?
Not unless you agree, or the employer told you in writing to take your annual vacation before giving the termination notice. Banked overtime can't be forced either without a written agreement.
How is termination pay calculated if my hours vary?
Average your wages for regular hours over the last 13 weeks you worked before the termination date, counting only the weeks you worked.
