Employers
Trusted employment law guidance for Alberta employers — practical, clear, and focused on results
Severance Packages
A severance package is a negotiated agreement that provides compensation to an employee upon termination, and often goes beyond what is required under the Employment Standards Code. Severance packages may include pay in lieu of notice, bonus arrangements, continuation of benefits, and other negotiated components.
Providing a well-structured severance package is an important tool for employers to manage risk and minimize potential disputes. Properly drafted packages can help avoid wrongful dismissal claims and human rights complaints.
Our firm guides employers in developing severance packages that reflect statutory requirements and common law considerations, taking into account factors such as employee tenure, position, compensation, and mitigating circumstances. We ensure that packages are legally enforceable, unambiguous, and tailored to the company’s operational needs.
By handling severance proactively, employers can reduce legal exposure and preserve a positive workplace culture.
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