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Friday, June 6, 2025

Understanding Termination Pay vs. Severance Pay in Alberta - Samfiru Tumarkin LLP

When employment ends in Alberta, you may be owed far more than just a few weeks’ pay. Most employees are entitled to up to 24 months’ pay – but you need to understand the difference between termination pay and severance pay to know your full rights.

To quickly estimate what you may be owed, try our Severance Pay Calculator.

While these terms are often used interchangeably, they serve distinct purposes under Alberta law. And both are minimums under the Employment Standards Code (ESC) – your actual common law rights can be significantly higher.

For a deeper dive into each type of compensation in Alberta, visit our pages on termination pay and severance pay.

Want a quick overview about employment law legal terms? Watch the video below or check out the full episode in our TV section.

What is Termination Pay?

Termination pay is compensation provided when an employer ends an employment relationship without sufficient notice. Instead of providing a notice period, the employer pays out a lump sum equivalent to what the employee would have earned during that time.

  • Eligibility: Employees with at least 90 days of continuous service are entitled to termination pay if no working notice is given.
  • Calculation: Based on length of employment, up to 8 weeks under the ESC.

For more details, visit our Alberta Termination Pay page.

What is Severance Pay?

Severance pay is money your employer owes you when your job is permanently ended. It’s meant to recognize your years of service and the...



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