Employment terminations in British Columbia are governed by two parallel sets of rules: the statutory minimums under the Employment Standards Act, RSBC 1996, c 113 (ESA), and the common law reasonable notice obligation that applies to all non-unionized employees who have not validly limited their notice entitlement by contract. Understanding both frameworks — and how they interact — is essential for BC employers and employees in 2026.

Statutory Notice Periods by Years of Service

The BC ESA sets out minimum termination notice periods based on the employee's length of service at the time of termination:

The employer can provide the notice period as working notice (the employee continues to work and receive wages), as wages in lieu of notice (a lump-sum or series of payments), or a combination of both. Wages in lieu of notice must represent all regular wages the employee would have earned during the notice period, including the value of any benefits.

Statutory Minimum Is Just the Floor: The ESA notice periods are the absolute minimum required by law. BC courts routinely award common law reasonable notice periods that are significantly longer — particularly for senior, long-tenured, or specialized employees. A written employment agreement with a valid termination clause is the only reliable way to limit an employee's notice entitlement to the statutory minimum or a defined contractual amount.

Temporary Layoff Rules: The 13-of-20-Weeks Limit

BC's ESA permits employers to temporarily lay off employees without triggering a "deemed termination," but with strict limits. An employee is considered terminated (and entitled to termination pay) if the temporary layoff exceeds:

A temporary layoff that exceeds these limits is automatically converted to a termination, and the employer becomes liable for termination pay as if the employee had been permanently terminated at the time the layoff began. This rule was heavily litigated during COVID-19 pandemic layoffs and remains an important limit on employer flexibility in using temporary layoffs as a cost-saving measure.

Just Cause: A High Bar in BC

An employer in BC can terminate an employee without notice or termination pay if there is "just cause" for the dismissal. The ESA provides that just cause is a defence to termination pay obligations. However, the threshold for just cause dismissal in BC is very high — it is not enough that the employee made a mistake or was a poor performer. Just cause typically requires:

Poor performance, personality conflicts, or redundancy do not constitute just cause for termination without notice in BC. Employers who dismiss for cause where cause does not exist risk a wrongful dismissal claim — the employee can claim termination pay (ESA) plus common law reasonable notice damages.

Documenting the Conduct Is Critical: In BC (and across Canada), an employer who wants to terminate for cause must have a documented record of the misconduct and any prior warnings given. Without documentation, even genuine misconduct cases are difficult to defend. If you believe an employee's conduct may eventually lead to termination for cause, start documenting now and follow a progressive discipline process.

Common Law Reasonable Notice: The Strudwick Standard

Beyond the ESA minimums, all BC employees who do not have a valid written termination clause are entitled to "reasonable notice" of termination under the common law. The leading BC case is Strudwick v Applied Consumer and Clinical Evaluations Inc, 2016 BCCA 393, which confirmed that the calculation of reasonable notice requires consideration of all relevant factors including:

There is no strict cap on common law reasonable notice in BC — it can extend to 24 months or more in exceptional cases involving senior employees with long service. For a 50-year-old manager with 20 years of service in a specialized industry, reasonable notice could easily be 18–24 months.

Group Termination: 50 or More Employees

When an employer terminates 50 or more BC employees from a single location within any 2-month period, the group termination provisions under s.64 of the ESA apply in addition to individual termination requirements. The required notice to employees (and to the Employment Standards Branch) is:

These group notice periods run concurrently with individual statutory notice periods. Employers who fail to provide the required group notice are liable for wages in lieu of notice for the difference between the individual notice given and the group notice required.

Severance Pay vs. Working Notice

BC's ESA uses the term "termination pay" (wages in lieu of notice) rather than "severance pay" (a separate statutory payment, as exists in Ontario for large employers). Under the BC ESA:

Practical Termination Checklist for BC Employers

  1. Calculate the ESA minimum notice period based on the employee's length of service.
  2. Review the employment agreement for any contractual termination provisions and confirm they comply with the ESA.
  3. Assess common law reasonable notice exposure for negotiation purposes.
  4. Prepare a termination letter specifying the last day of employment, amount of notice being given (or pay in lieu), and entitlement to any outstanding vacation pay or benefits.
  5. If offering a separation package, include a release of claims — have the employee reviewed it with their own lawyer before signing.
  6. Confirm Record of Employment (ROE) is issued within 5 calendar days of the last day of work.