Pay In Alberta
What You Must Know About Severance Pay In Alberta
Severance pay in Alberta is mandated by the law. Alberta Employment Standards Code has laid down stringent guidelines as to what kind of severance pay every employee would be entitled to. Severance pay in Alberta is the mandatory payment an employer has to offer any employee who has worked for at least three months in a situation where either the employee is laid off or there is a mutual decision to part ways. Any permanent employee is eligible for severance pay in Alberta. The state laws stipulate the minimums in various instances such as if an employee has worked for three months up to a year for a company then the severance pay would be at least a week’s wages of the employee. Should an employee be two year old in a company then the severance pay in Alberta should be a minimum of two week’s wages. With each year piling on, a week’s wages become mandatorily payable as severance pay in Alberta.
The maximum severance pay in Alberta as mandated by the law is eight week’s wages and that is in a circumstance where the employee has worked for 8 years or more for the company. Every specific case may be different for an employee if there is an employment contract or certain regulations of severance pay are mentioned in the employee handbook. Senior executives or even mid management executives may have customized severance pay in Alberta which have been mutually agreed upon by the employer and the employee at the time of induction.
Typically, severance pay in Alberta is mandated by law to ensure that the companies or employers offer optimum care to their employees, existing or those parting ways. The payment not only helps an employee who is no longer working for them but also acts as a reassurance to existing employees that the company would offer help when they would need it the most.
Each and every specific case may demand a nonpartisan review of severance pay in Alberta to conclude if the compensation is absolutely fair. This is where an employment attorney can play a defining role. Fair severance pay in Alberta would require analysis of an employee’s job description, years of service, insurance, leaves, unpaid allowances, retirement benefits and a horde of other factors under the scope of employment.
Every company has to be committed to severance pay in Alberta. This is nonnegotiable and without exception.