Termination of Employment
The following questions and answers are for information purposes only. For actual interpretation and application purposes refer to the Employment Standards Act and regulations, or contact an Employment Standards Officer in the Labour Services Office on the 3rd Floor of the Law Centre, 2130-2nd Avenue, Whitehorse, Yukon or call (867) 667-5944 (toll free within the Yukon 1-800-661-0408 extension 5944).
- When is notice of termination required?
- Who is required to give termination notice?
- Are there exceptions to the requirements for notice or pay in lieu of notice?
- How much notice or pay in lieu is required?
- What can the employer do when the employee fails to give notice but does not consent to the deduction?
- What is temporary layoff?
- When does temporary layoff become termination?
- Can termination notice be given when the employee is on an annual vacation?
- Does the Act prohibit an employer from firing employees?
- When is notice of termination required?
Termination notice is required after the employee completes six (6) consecutive months of employment with the employer.
- Who is required to give termination notice?
Once 6 months of employment are completed, both employers and employees are required to give written notice.
- Are there exceptions to the requirements for notice or pay in lieu of notice?
The termination requirements do not apply to:
- an employee who has not completed six (6) months of consecutive employment,
- an employee discharged for just cause,
- an employee whose employer has failed to abide by the terms of the employment contract,
- an employee being temporarily laid off (less than 13 weeks),
- an employee unable to perform an employment contract due to an unforeseeable event or circumstance,
- an employee who has refused reasonable alternative employment,
- an employee working in the construction industry,
- an employee working in a seasonal or intermittent undertaking operating less than six (6) months in a year,
- the termination of an employment relationship due to the completion by the employee of a project or assignment that the employee was hired to perform over a period not exceeding 12 months, whether or not the exact period was stated in the employment contract and,
- an employee who is still employed after completing the term of employment that was fixed in the employment contract, unless the employee is employed for a period of more than one month after the completion of that term.
- How much notice or pay in lieu is required?
The amount of notice differs depending on the length of time the individual was employed. The notice must be in writing and if the employer fails to do so, the employee may be entitled to one week's wages for each week of notice to which he or she was entitled. The graduating scale of notice is as follows:
- employed greater than six months but less than one year - one week
- employed greater than one year but less than three years - two weeks
- employed greater than three years but less than four years - three weeks
- employed greater than four years but less than five years - four weeks
- employed greater than five years but less than six years - five weeks
- employed greater than six years but less than seven years - six weeks
- employed greater than seven years but less than eight years - seven weeks
- employed eight years or more - eight weeks
An employee who has been employed for more than six months must also provide written notice of resignation to an employer. The amount of notice required is as follows:
- one week's notice if the period of employment is less than two years
- two week's notice if the period of employment is two years or more but less than four years
- three week's notice if the period of employment is four years or more but less than six years four week's notice if the period of employment is six years of more
If an employee does not provide the proper notice, the employer may, with the consent of the employee, deduct one week's wages.
- What can the employer do when the employee fails to give notice but does not consent to the deduction?
If the employee does not consent to the deduction of 1 week's pay, the employer can still make the deduction but must pay the amount in question to the Director of Employment Standards, who will investigate the matter. The Director is authorized to make a decision resolving the issue. If either party is dissatisfied with that decision, they may appeal.
- What is temporary layoff?
Temporary layoff is an interruption of the employee's employment by the employer for a period not greater than 13 out of 20 consecutive weeks.
- When does temporary layoff become termination?
Termination occurs if the employee is on layoff for more than 13 out of 20 consecutive weeks, unless the Director has fixed a later recall date or unless the Employment Standards Board has ordered an extension of the layoff period, or both. Upon expiry of the layoff period, the employee is considered to have been terminated at the beginning of the period and pay in lieu of notice must be paid to the employee.
- Can termination notice be given when the employee is on an annual vacation?
No. The Act specifically prohibits either the employer or employee from giving notice of termination when the employee is on annual vacation.
- Does the Act prohibit an employer from firing employees?
The employer retains the right to hire and to terminate an employee. The employer is not always free to terminate without notice or pay in lieu because the employer must meet the minimum standards and legislative requirements established under the Act. Employers and employees should be aware that the Yukon Human Rights Act prohibits discriminatory practices on a number of grounds relevant to the employer-employee relationship.