As we move into 2026, federally regulated employers across Canada should take a moment to reassess their termination practices
Since February 1, 2024, the Canada Labour Code has required graduated notice of termination for employees dismissed without cause. While these changes are no longer new, many employers have yet to fully update their employment agreements, termination templates, and internal processes to reflect the current legal requirements.
These rules apply to individual terminations involving up to 49 employees. The separate mass termination provisions under the Code continue to apply where 50 or more employees are affected.
Graduated Notice of Termination Based on Length of Service
Before February 2024, federally regulated employees with at least three months of service were entitled to a flat two weeks’ notice, regardless of tenure.
That approach is no longer compliant.
Federally regulated employers must now provide graduated notice of termination, based on an employee’s length of continuous service:
| Length of Continuous Employment | Minimum Notice Entitlement |
| At least 3 months, up to 3 years | 2 weeks |
| At least 3 years, up to 4 years | 3 weeks |
| At least 4 years, up to 5 years | 4 weeks |
| At least 5 years, up to 6 years | 5 weeks |
| At least 6 years, up to 7 years | 6 weeks |
| At least 7 years, up to 8 years | 7 weeks |
| 8 years or more | 8 weeks |
Notice may be provided as working notice, pay in lieu of notice, or a combination of both.
These notice obligations are separate from severance pay, which may also be owed under the Canada Labour Code.
Written “Statement of Benefits” Is Now Mandatory
In addition to graduated notice, employers must provide terminated employees with a written statement of benefits setting out their entitlements as of the termination date.
This statement must include:
- Wages
- Vacation entitlements
- Severance pay
- Any other benefits or compensation arising from employment, including benefit continuation where applicable
The timing depends on how notice is delivered:
- Working notice: As soon as possible, but no later than two weeks before the termination date
- Working notice plus pay in lieu: No later than two weeks before termination, unless the notice period is shorter
- Pay in lieu only: On the termination date
Failure to provide this statement properly can expose employers to compliance issues and additional liability.
Unjust Dismissal Protections Remain a Key Risk
It is important to remember that these notice changes do not replace unjust dismissal protections under the Canada Labour Code.
Non-unionized, non-managerial employees with 12 months or more of continuous service continue to have the right to challenge a termination as unjust, unless the dismissal results from a lack of work or the discontinuance of a function.
Remedies before the Canada Industrial Relations Board can include reinstatement, compensation, or both.
As a result, simply paying statutory notice and severance may still be insufficient unless an enforceable employment agreement properly limits entitlements.
2026 Compliance Check: Key Takeaways for Employers
As we enter 2026, federally regulated employers should ensure that:
- Employment agreements reflect current termination notice requirements
- Termination letters and HR processes include the mandatory statement of benefits
- Managers understand that statutory entitlements are minimums, not a cap
- Termination strategies account for unjust dismissal exposure
These are not academic issues. Noncompliance with termination requirements can lead to costly disputes, regulatory scrutiny, and reputational risk.
How Minken Employment Lawyers (Est. 1990) Can Help
Federally regulated employers operate in a uniquely complex termination landscape.
Whether you are reviewing employment agreements, planning workforce changes, or responding to a termination, Minken Employment Lawyers (Est. 1990) provides practical, experienced guidance to help you stay compliant and reduce risk.
For advice on termination notice, severance obligations, unjust dismissal exposure, and employment contract compliance under the Canada Labour Code, contact Minken Employment Lawyers (Est. 1990) for a confidential consultation at 905-477-7011 or contact@minken.com.
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Please note that this article is for informational purposes only and does not constitute legal advice or opinion.