Employers across Canada in the federal jurisdiction should take a moment to reassess their termination practices
Since Feb. 1, 2024, the Canada Labour Code has required graduated notice of termination for employees dismissed without cause. While these changes are no longer new, many employers have yet to fully update their employment agreements, termination templates, and internal processes to reflect the current legal requirements.
These rules apply to individual terminations involving up to 49 employees. The separate mass termination provisions under the code continue to apply where 50 or more employees are affected.
Before February 2024, federally regulated employees with at least three months of service were entitled to a flat two weeks’ notice, regardless of tenure.
That approach is no longer compliant.
Federally regulated employers must now provide graduated notice of termination, based on an employee’s length of continuous service:
| Length of continuous employment | Minimum notice entitlement |
| At least 3 months, up to 3 years | 2 weeks |
| At least 3 years, up to 4 years | 3 weeks |
| At least 4 years, up to 5 years | 4 weeks |
| At least 5 years, up to 6 years | 5 weeks |
| At least 6 years, up to 7 years | 6 weeks |
| At least 7 years, up to 8 years | 7 weeks |
| 8 years or more | 8 weeks |
Notice may be provided as working notice, pay in lieu of notice, or a combination of both.
These notice...
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