Terminated in British Columbia? A Guide to Your Severance Rights

Losing your job is a profound shock. The unexpected meeting, the formal language, the severance offer presented with a firm deadline—it is a disorienting and stressful experience. In that moment, the power dynamic is clear, and employers often count on you feeling too pressured to question what is presented as a final offer.

Before you take any action, it is crucial to understand this: the initial severance offer is a starting point for negotiation, not an endpoint. Your legal entitlements are very likely greater than what is on the table.

Understanding Your Full Severance Entitlement

A critical distinction exists in British Columbia law between the two components of severance pay. The difference between them often represents tens of thousands of dollars.

1. Statutory Minimums (The Legal Floor)
The Employment Standards Act sets the absolute minimum pay an employer must provide. This is a basic safety net that starts at one week of pay and increases with service. Many employers present an offer based on these minimums as a complete and fair package. It is not; it is merely the legal floor.

2. Common Law Reasonable Notice (Your True Entitlement)
Separate from the statutory minimums is your right to “reasonable notice” under common law. This is what the courts deem fair compensation to provide a financial bridge while you secure comparable employment. It is not calculated with a simple formula but is based on a careful assessment of your individual circumstances. This is your true, and typically much larger, entitlement.

A “wrongful dismissal” is not an accusation of employee misconduct. The term simply means an employer has failed to provide adequate notice or pay in lieu of notice as required by common law. It is a failure on their part to provide fair and complete severance.

How Fair Severance Is Determined

The calculation of common law severance is a principled assessment based on four key factors:

• Your Age: The law acknowledges the significant challenges older employees can face when re-entering the workforce.

• Your Position: Seniority, specialization, and overall character of employment are considered. The more specialized your role, the longer it may take to find a similar one.

• Length of Service: Your history of service with the employer is a significant factor, although even employees with short tenure are entitled to fair notice.

• The Labour Market: An objective analysis of the availability of similar employment opportunities in your location is essential.

Challenging Common Severance Misconceptions

• Myth: Severance is calculated at one week per year of service.
  Reality: This common formula refers only to the statutory minimums. It has no bearing on your far more substantial common law entitlements.

• Myth: You must accept the offer before the employer’s deadline.
  Reality: An employer’s deadline is an internal pressure tactic, not a legal barrier. In British Columbia, you have two years from the date of termination to pursue a claim for proper severance.

Your Immediate Priorities After Termination

With your employment terminated, your response in the first few days is critical. We advise taking these three steps:

1. Do Not Sign Any Agreements. Do not sign a release or final settlement. Politely receive the documents and inform your employer you need time to review them. Signing can extinguish your right to negotiate.

2. Preserve All Documentation. Keep your employment contract, termination letter, pay stubs, and any relevant email correspondence. These documents are essential for a proper assessment of your case.

3. Seek Professional Legal Counsel. A consultation with an experienced employment lawyer is the most effective way to understand your rights, evaluate your severance offer, and determine a clear path forward.

At TZ Law, our practice is dedicated to employment law. We regularly assess severance offers and represent employees to secure the fair compensation they are owed. We understand the law, the tactics employers use, and the strategies required to achieve a just outcome for our clients.

Your employment may have ended, but your rights have not. Contact us for a consultation to ensure they are protected.