What is the procedure to terminate an employment contract in Canada?

The core procedure for terminating employees in Canada is to determine the correct notice period or payment in lieu thereof. When terminating an employee who has been working for the company for at least three months, a written notice of termination is required. Fourteen days is the standard notice period, but it is longer for employees with more service.  


The notice period entitlements in Canada are as follows: 

  • 3-12 months of employment: 7 days 
  • 3-4 years employment: 3 weeks  
  • 4-5 years employment: 4 weeks  
  • 5-6 years employment: 5 weeks  
  • 6-7 years employment: 6 weeks  
  • 7-8 years employment: 7 weeks  
  • 8+ years employment: 8 weeks  


Should you need to terminate an employee, your local PEO can facilitate the entire process and ensure that your company is compliant with Canadian law at every turn. 


If you have questions about terminating employment contracts in Canada, please get in touch with our team today! 

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