5 Common Mistakes Employers Make When Terminating Employees in Alberta – And How to Avoid Them
Letting someone go is never easy, but how it’s handled can either protect your business or expose it to serious legal and financial risks. In Alberta, courts and human rights tribunals have emphasized that employers must follow a fair and legally sound process when terminating employment. This blog highlights five common mistakes employers make and offers practical, legally grounded guidance supported by Canadian case law and legal principles.
- Failing to Document Performance Issues or Misconduct
Employees should not be terminated for poor performance or workplace misconduct without clear records showing what went wrong and how the employer tried to address it. Employers are expected to give clear warnings, opportunities to improve, and maintain documentation along the way.
In Chapman v. ATC-Frost Magnetics Inc. (Ont. Gen. Div.), the court found that the employer wrongfully dismissed an employee because it did not follow its own progressive discipline process.
Tip: Always keep written records of meetings, warnings, and performance reviews. Make sure your managers understand how to document concerns fairly, consistently, and in line with your HR policies.
- Not Following Company Termination Policies
If your company has written procedures for managing discipline or termination like progressive warnings or internal reviews they must be followed. Ignoring your own policies undermines your credibility and can lead to claims of unfair treatment or breach of contract.
In Laszczewski v. Aluminart Products Ltd., the employer skipped steps in its own termination procedure. The court ruled in favor of the employee, finding the dismissal was not handled properly.
Tip: Before making a termination decision, review the employee’s contract, your handbook, and internal policies to ensure your process aligns with what you promised.
- Providing Inadequate Notice or Severance
Many employers believe that providing the minimum notice under Alberta’s Employment Standards Code is enough. But under common law, employees are often entitled to much more sometimes one month of pay per year of service, depending on their role, age, and how long they’ve worked for you.
In Pennock v. United Farmers of Alberta (ABQB), an Alberta court ruled that a 30-day notice clause was not enforceable. The employee, a long-term contractor, was awarded nine months’ notice instead.
Tip: Use well-drafted employment contracts with enforceable termination clauses. And when in doubt, consult a lawyer before making a termination offer, getting it wrong can cost much more than doing it right.
- Terminating for a Discriminatory or Retaliatory Reason
Terminating an employee shortly after they request a medical leave, accommodation, or file a workplace complaint can appear retaliatory even if the official reason is unrelated. Human rights law protects employees from being dismissed for reasons connected to disability, pregnancy, race, religion, age, gender, or any other protected ground.
In Whitford v. Agrium Inc. (ABQB), an Alberta employer dismissed an employee struggling with alcoholism and depression without adequate warnings or accommodation efforts. The court ruled the termination was wrongful and discriminatory.
Tip: If an employee has recently raised a protected issue (like a disability or harassment complaint), tread carefully. Document your legitimate business reasons for any termination, and be sure they are not connected to the employee’s protected status. Seek legal advice before proceeding.
- Mishandling the Termination Meeting
Even when the reason for termination is sound, the way you deliver the message matters. Terminations that are rushed, insensitive, or humiliating can lead to claims of bad faith and extra damages even if the dismissal itself is legal.
In Wallace v. United Grain Growers Ltd. (SCC), the Supreme Court awarded additional damages after the employer acted in bad faith by making misleading accusations and damaging the employee’s reputation during the termination process.
Tip: Plan the meeting. Have HR present. Be brief, respectful, and clear. Avoid emotional language or surprises. Provide a termination letter and calmly explain the next steps, such as final pay and benefits.
Final Thoughts
Termination is a legal process not just an HR task. By documenting properly, following procedures, providing fair notice, and handling meetings with care, employers can reduce risk and demonstrate professionalism.
Need help reviewing your termination process or contracts? At Osuji & Smith Lawyers, we help businesses, corporations, and HR teams navigate complex employment matters with clarity, compliance, and confidence.
Written by Sally Osuji, Employment Lawyer, Osuji & Smith Lawyers
Osuji & Smith | Employment Lawyers Calgary | Business Lawyers
