Statutory minimum notice

A buyer who plans to let staff go after closing, or a seller disclosing liabilities, meets statutory minimum notice as the floor of what is owed. It is separate from any larger common-law claim and from severance pay.

How it differs by province

In Ontario, section 54 of the Employment Standards Act says an employer must not terminate an employee employed for three months or more unless it gave written notice under the Act that has expired, or complied with section 61. Prescribed employees are not entitled to it (s. 55). Alberta’s government says employers who end employment must give written termination notice, and may give notice, termination pay or a combination, subject to the exceptions it lists, such as dismissal for just cause. British Columbia’s Act makes the employer liable for compensation for length of service after three consecutive months, deemed discharged if the employee is given written notice, or a combination of notice and money, or terminates the employment, retires or is dismissed for just cause (s. 63), subject to the exceptions in section 65. The Canada Labour Code sets notice, wages in lieu or a combination for federally regulated employers (s. 230), except on dismissal for just cause (s. 229.1).

What to check or ask

• Which province’s statute, or the federal Code, covers each employee
• Whether any employee is exempt under that statute
• Whether a contract gives more than the statute

See what are my obligations if I terminate employees after buying a business and termination pay.