Alberta Severance Pay

Alberta Severance Pay

In Alberta severance pay is a package of payment and benefits that may be offered by a company to an employee who has been laid off temporarily or fired permanently. It has to be noted that in Alberta severance pay may vary largely among companies and are based on several factors.

As per the state laws any labor (or employee), who has worked for more than the customary probation period of 3 months are entitled to Alberta severance pay. In addition to that clause, Alberta severance pay is also governed by the circumstances of termination. In most cases, it is the notice period offered to an employee prior to being terminated.

Here are some of the factors that are taken into account while considering the eligibility for Alberta severance pay.

Cause of termination: The cause of termination would be the most significant factor. If an employee is terminated for some acts which are considered heinous or completely unacceptable as per company standards, then Alberta severance pay may not be completely applicable. There are many instances when some actions that are entirely against the interests of a company lead an employee to get terminated. These are not normally considered for any Alberta severance pay.

Length of time you were employed: The longer an employee works for a company, the higher is the Alberta severance pay.

Employment insurance coverage: Companies have employment insurance and any employee having one or more types of insurance with their company would be eligible for Alberta severance pay. Even if there are other factors where the employee is ineligible, this shall still stand as a legit ground.

Your age: Employees who are nearing retirement are entitled to a complete package of Alberta severance pay which may include retirement benefits and several other bonuses.

The nature of the work: Contractual workers are exempted from Alberta severance pay. Similarly, employees who have been hired on a temporary basis or those who are not on the company payroll would not be considered eligible for Alberta severance pay.

The manner in which you were dismissed: This is a qualifying criterion for Alberta severance pay. Employees who have been given considerable notice prior to termination, have been offered alternative jobs or have been assisted to get new jobs may not be eligible for Alberta severance pay.  

Companies have their own policies on Alberta severance pay and if you are wondering if your company has a fair policy then an employment attorney could be of help.