September 8, 2026

When you are terminated without cause in British Columbia, your employer may tell you that you are entitled to only a few weeks of termination pay under the Employment Standards Act (the "ESA"). But that does not necessarily mean your employer is right — or that the amount offered represents your full legal entitlement.

The ESA sets the minimum.

The ESA establishes minimum entitlements. In many cases, however, you have additional rights at common law. Those rights may affect not only how long you should be compensated following termination (the common law reasonable notice period), but also what forms of compensation should be included during that notice period.

It often comes down to your contract.

Recent cases illustrate why you should carefully review both your employment contract and your compensation arrangements before accepting a termination or "severance" package. Whether your employer can limit you to ESA minimums often turns on the wording of your employment contract. Recent British Columbia decisions confirm that a properly drafted termination clause may displace common law notice, but unclear, ambiguous or non-compliant language may fail to do so. Importantly, an employer does not necessarily need to use particular "magic words" such as "ESA minimums only." The question is whether, as properly interpreted, the agreement clearly and unambiguously demonstrates an intention to replace your common law notice entitlement with another entitlement (equal to or greater than the ESA minimums).

The difference can be significant: think months of pay, not weeks.

Compensation can mean more than base salary.

The amount of notice (or pay in lieu thereof) is also only part of the context-specific analysis. Wrongful dismissal damages are generally intended to reflect what you would have earned had you remained employed throughout the common law reasonable notice period. Depending on your compensation structure, this may include more than just base salary. Commissions, bonuses, allowances, pension contributions and other benefits may also form part of the claim. The Supreme Court of Canada has confirmed that the question in such cases is whether you would have received the bonus or benefit during the reasonable notice period and, if so, whether the applicable contract or compensation plan clearly and unambiguously removes that common law entitlement.

Before you sign.

The practical takeaway is simple: a termination letter or severance offer is not necessarily a complete statement of your rights. The enforceability of your employment contract and/or its terms, the length of the reasonable notice period, and the full value of your compensation package can all materially affect what you are owed.

So, you need not take your employer's word for it. Before signing a release or accepting a termination package (or, if you're like us and you're already planning steps ahead — before signing an offer of employment), it can be worthwhile to have all terms of your employment reviewed to ensure the offer reflects the full scope of your legal entitlements.

If you have been given a termination letter or a severance offer, we can review it with you before you sign. Get in touch with the team at GoodWin Law.