In Canada, a resignation is always initiated by the employee. Employers are not required to justify an employee’s decision to resign, and employees may leave for any reason. The applicable rules can differ depending on whether the resignation occurs during or after the probation period and may also vary by province.

Resignations must be submitted in writing.

In most Canadian provinces, there is no statutory requirement for employees to provide notice unless the employment agreement specifically requires it.

While notice is not legally mandatory in many cases, it is generally expected as a matter of good faith and professional practice. If the employment contract includes a notice clause, the employee must comply with it.

Federal law does not require severance pay when an employee resigns voluntarily.

All earned wages up to the employee’s last day of work, along with accrued but unused vacation, must be paid out upon resignation.

Employers are required to issue final pay promptly, with deadlines varying by province, including:

• British Columbia: within 6 days of the last working day

• Alberta: within 10 days after the end of the pay period in which the resignation occurred, or within 31 days of the last day worked

• New Brunswick: no later than the next regular payday, and no later than 21 days after the last day of employment

Any additional contractual benefits such as bonuses or stock options are handled according to the terms of the individual employment agreement. Final pay must always include all earned wages and accrued but unused vacation.

Termination with cause allows an employer to end the employment relationship immediately when serious misconduct or other qualifying circumstances occur. Canadian law applies a high threshold for “cause,” and requirements may vary slightly by province.

Termination with cause may apply in situations including:

• Serious misconduct such as theft, fraud, violence, harassment, or willful neglect of duties

• Repeated failure to perform job duties despite prior warnings

• Breach of company policies or the employment contract that fundamentally undermines the employment relationship

• Behavioral issues such as insubordination, serious violations of workplace discipline, or repeated absences

Province-specific terminology:

• Quebec: Termination must be for “good and sufficient cause”

• Nova Scotia: Termination must be for “just cause”

Other situations where cause may apply:

• Disciplinary issues, including repeated absences, lateness, poor performance, or insubordination

• Fixed-term employment where the employee works for a defined term or task not exceeding 12 months, and employment ends once the term or task is completed

• Sudden lack of work caused by circumstances the employer could not avoid (for example, a workplace accident or explosion)

• Offer of alternate employment where the employer provides the employee with other reasonable work

• Retirement, where the employee has reached retirement age based on a bona fide occupational requirement

Termination must be communicated in writing.

When termination is for cause, the employer is not legally required to provide notice.

Employees terminated with cause are generally not entitled to severance pay under federal or provincial law.

Final wages must still be paid, including unpaid salary, overtime, and accrued vacation pay. Other contractual benefits such as bonuses or stock options may be forfeited, depending on the terms of the employment agreement.

In Canada, employers may terminate employment without providing a specific reason, as long as all statutory notice and severance obligations are met. These terminations are typically formalized through a written termination letter and may also involve a Settlement Agreement and Release.

Termination without cause is generally permitted across Canada, except where provincial rules impose stricter protections.

Quebec: Employees with 2 or More Years of Seniority

Employees with at least two years of service may only be dismissed for just cause, and a warning is required. What qualifies as just cause depends on the specific circumstances of both the employee and the employer, and typically includes:

• Disciplinary issues

• Repeated absences or lateness

• Negligence in performing work

• Insubordination

Nova Scotia: Employees with 10 or More Years of Seniority

Employees with at least two years of service may only be dismissed for just cause, and a warning is required. What qualifies as just cause depends on the specific circumstances of both the employee and the employer, and typically includes: Expectations were clearly communicated to the employee

• The employee was warned to improve behavior

• The employee was given a reasonable opportunity to improve

• The employee was warned that failure to improve could result in termination

Written notice is required.

• Less than 3 months: no statutory minimum notice

• 3 months to less than 3 years: minimum 2 weeks

• 3 years or more: 3 weeks plus 1 additional week per completed year of service, up to a maximum of 8 weeks

Federally regulated employees with three or more years of service may be entitled to statutory severance pay under the Canada Labour Code.

In some provinces, such as Ontario, employees may also qualify for additional severance if they have at least five years of service and the employer meets minimum size thresholds.

Severance is typically calculated based on years of service and regular wages.

• Accrued vacation pay must be paid out

• Outstanding wages, overtime, and contractual bonuses must be settled

• Other contractual benefits apply if specified in the employment agreement

A mutual termination agreement allows both the employer and employee to voluntarily end the employment relationship on agreed terms. All conditions including notice, final payments, and post-employment obligations are negotiated and documented in writing.

A written agreement signed by both parties is required.

Determined by mutual agreement and may be shorter or longer than statutory minimums.

Severance is determined by agreement between the employer and employee. It may include a lump-sum payment reflecting statutory severance, additional compensation, or other negotiated amounts. Severance is not mandatory if both parties agree to the terms.

No statutory notice is required when a fixed-term contract expires on its agreed end date.

• Severance is generally not required unless explicitly stated in the contract
• Accrued vacation pay must be paid
• Any other contractual benefits such as bonuses, health coverage, or stock options apply only if specified in the agreement

Early termination is treated as termination without cause unless the employee is dismissed for just cause.

Minimum statutory notice may also apply depending on service length and jurisdiction.

Severance or termination pay may be required under federal or provincial law, in addition to any contractual entitlements

• Accrued vacation pay must be paid
• Outstanding salary, bonuses, and other contractual benefits must be settled
• Any agreed termination package, such as extended health benefits, must be honored

Employees must receive final wages including unpaid salary, accrued vacation pay, and contractual entitlements on the next scheduled payday or within the timeframe set by applicable provincial or federal law. Most jurisdictions require final payment within 7–10 days of termination.

Failure to pay final wages on time may result in fines or enforcement orders from labour standards authorities. Employees may file complaints to recover unpaid wages, and employers may be liable for interest or penalties.