The Alberta Small Business Termination Checklist: A Step-by-Step Guide for Employers Without an HR Department

What to Do Before You Let an Employee Go

For many Alberta entrepreneurs, terminating an employee is one of the most difficult decisions they will make.

Perhaps the business has outgrown the employee’s skill set. Perhaps performance has declined despite repeated coaching. Perhaps the company simply cannot sustain the position any longer.

Whatever the reason, one conversation can have lasting legal consequences.

A termination that appears straightforward can quickly become a wrongful dismissal lawsuit, a human rights complaint, or an Employment Standards investigation if the proper steps are not followed.

Large organizations often rely on experienced Human Resources professionals to guide them through this process. Most startups and small businesses do not have that luxury.

Instead, founders and business owners are expected to make legal, operational, and financial decisions at the same time, often while trying to protect their team, their reputation, and the future of the business.

Fortunately, most termination disputes are preventable.

They rarely arise simply because a business decided to end an employment relationship.

They arise because the process was poorly documented, poorly communicated, or poorly executed.

This Termination Checklist Alberta employers can follow outlines practical steps every business should consider before, during, and after terminating an employee.

Termination Checklist Alberta: Before You Schedule the Meeting

1. Confirm the Reason for Termination Can Be Supported

Before scheduling a meeting, ask one important question:

Could the business explain and support this decision six months from now if it were challenged?

If the answer is uncertain, more preparation may be needed.

If performance is the concern, the file should include:

• Documented coaching conversations
• Performance reviews
• Written warnings, where appropriate
• Emails confirming expectations
• Records showing the employee had an opportunity to improve

Courts rarely decide cases based on memory alone.

Documents tell the story.

2. Consider Whether the Employee Is Protected by Legislation

Timing matters.

An otherwise legitimate termination may create legal risk if it occurs shortly after an employee:

• Reports workplace harassment
• Raises discrimination concerns
• Requests accommodation
• Takes maternity or parental leave
• Takes medical leave
• Files an Employment Standards complaint
• Raises workplace safety concerns

That does not necessarily mean the employee cannot be terminated.

It means the employer should ensure there is a legitimate, well-documented business reason for the decision and seek legal advice before proceeding.

3. Be Honest About Whether This Is Really “Just Cause”

One of the most expensive mistakes employers make is assuming poor performance automatically amounts to just cause.

It does not.

Just cause is one of the highest standards in employment law.

It generally involves serious misconduct or repeated conduct that fundamentally damages the employment relationship.

If the evidence falls short, alleging cause may significantly increase the employer’s liability.

Many businesses would have been better served by terminating without cause and providing appropriate notice or severance.

4. Review the Employment Agreement Before Calculating Severance

Many employers immediately consult Alberta’s Employment Standards Code to determine notice.

That is only the starting point.

The statutory minimum notice provisions apply unless the employee has greater contractual or common law entitlements.

Employers can review the Government of Alberta guidance on termination notice and pay.

Review the employment agreement carefully.

Questions to ask include:

• Does the agreement contain a termination clause?
• Is the clause enforceable?
• Has the employee’s role changed significantly since signing?
• Could common law notice apply instead?

These questions may significantly affect the employer’s financial obligations.

5. Do Not Ignore Changes to the Employee’s Role

This issue is particularly common in startups.

An employee hired as an administrative assistant may gradually become an operations manager.

A software developer may become a product lead.

A sales representative may eventually oversee an entire department.

As businesses grow, roles evolve.

If responsibilities, reporting relationships, or compensation have changed substantially, the original employment agreement may no longer provide the protection the employer expects.

Where significant changes occur, it is often prudent to review the agreement to determine whether updated contractual documentation is appropriate.

Employers should also consider whether major unilateral changes could create constructive dismissal concerns.

Termination Checklist Alberta: During the Termination Conversation

6. Keep the Conversation Professional

The termination meeting is not an argument.

It is not a performance review.

It is not an opportunity to revisit months of workplace frustrations.

The purpose is simply to communicate the decision respectfully and explain what happens next.

Employees should understand:

• Their employment is ending
• The effective date
• Final pay arrangements
• Benefits information
• Return of company property
• Next steps

7. Have Someone Else Present

Whenever possible, another management representative should attend.

A witness provides:

• An independent record of the conversation
• Assistance if emotions escalate
• Protection if the discussion is later disputed

For very small businesses, this may mean involving an external HR consultant or employment lawyer.

8. Have Everything Ready Before the Meeting Begins

Preparation demonstrates professionalism.

The following documents should generally be ready before the employee enters the room:

• Termination letter
• Severance package, if applicable
• Release agreement
• Benefits information
• Final pay calculations
• Return-of-property checklist

Nothing should be drafted after the employee leaves.

9. Do Not Pressure the Employee to Sign Immediately

If a severance package includes a release, employees should be given a reasonable opportunity to review the documents.

Allowing time for independent legal advice not only reflects fairness, but may also help strengthen the enforceability of the release.

Termination Checklist Alberta: After the Employee Leaves

10. Issue the Record of Employment Correctly

The Record of Employment, or ROE, is more than an administrative form.

Incorrect coding or inconsistent explanations may:

• Delay Employment Insurance benefits
• Trigger questions from Service Canada
• Undermine the employer’s position in future litigation

Accuracy matters.

Employers can review the Government of Canada’s Record of Employment guidance before completing an ROE.

11. Process Final Pay Carefully

Final pay may include:

• Outstanding wages
• Vacation pay
• Commissions
• Bonuses, where applicable
• Other contractual entitlements

Simple payroll mistakes often create avoidable complaints.

12. Secure Company Property and Systems

Recover:

• Laptops
• Keys
• Access cards
• Company credit cards
• Confidential files
• Mobile devices

At the same time, disable system access, email accounts, and passwords to protect business information.

13. Preserve the Termination File

Once the termination is complete, resist the temptation to discard notes.

Retain:

• Performance records
• Emails
• Warning letters
• Meeting notes
• Termination documents
• Signed releases

Months later, these records may become the employer’s strongest evidence.

Common Termination Mistakes Alberta Startups Make

Even well-intentioned employers often make avoidable mistakes, including:

• Assuming probation means an employee has no legal rights
• Believing poor performance automatically amounts to just cause
• Waiting until termination to document concerns
• Copying employment contracts or termination letters from the internet
• Relying solely on Employment Standards minimum notice
• Forgetting to review whether the termination clause remains enforceable
• Pressuring employees to sign releases immediately

Most employment claims begin with one small mistake.

Several mistakes together often become expensive litigation.

Termination Checklist Alberta: The Bottom Line

Terminating employment is sometimes unavoidable.

Litigation often is not.

Most wrongful dismissal claims do not arise simply because an employer made the decision to terminate.

They arise because the employer skipped key steps along the way, such as maintaining proper documentation, reviewing an outdated employment agreement, completing an ROE accurately, or preparing properly for the termination meeting.

A thoughtful review before the meeting is almost always less expensive than defending a lawsuit after the fact.

Frequently Asked Questions About Terminating Employees in Alberta

Can an Employer Terminate an Employee Without Cause in Alberta?

Yes. In Alberta, employers can generally terminate an employee without cause provided they comply with the applicable legal requirements.

This usually means providing the employee with reasonable notice of termination or pay in lieu of notice, unless an enforceable employment agreement limits the employee’s entitlement to the minimum notice required under the Employment Standards Code or another lawful amount.

Before proceeding, employers should review the employment agreement carefully. An unenforceable termination clause may result in the employee being entitled to significantly greater notice under the common law.

How Much Notice Is Required to Terminate an Employee in Alberta?

The amount of notice depends on several factors.

At a minimum, Alberta employers must comply with the notice requirements under the Employment Standards Code. However, those statutory minimums do not always determine what an employee is legally entitled to receive.

If there is no valid and enforceable termination clause, courts may award common law reasonable notice based on factors such as the employee’s age, length of service, position, compensation, and the availability of comparable employment.

Because notice obligations vary considerably from case to case, employers should obtain legal advice before calculating severance.

What Is Just Cause for Dismissal?

Just cause is one of the highest legal standards in employment law.

It generally involves serious misconduct or repeated behaviour that fundamentally damages the employment relationship, making continued employment impossible.

Examples may include theft, fraud, serious dishonesty, workplace violence, or repeated misconduct despite clear warnings.

Poor performance, personality conflicts, or isolated mistakes do not automatically amount to just cause.

Employers who incorrectly allege cause may expose themselves to greater liability than if they had terminated the employee without cause and provided appropriate notice or severance.

Should an Employee Sign a Severance Agreement Immediately?

Generally, no.

Employees should take the time to review any severance package carefully before signing. Many agreements include a release that prevents the employee from bringing future legal claims relating to their employment or termination.

Obtaining independent legal advice before signing can help an employee understand whether the severance offer is fair and whether additional compensation may be available.

Likewise, employers should avoid pressuring employees to sign immediately, as allowing reasonable time for review may help strengthen the enforceability of the release.

Can an Employee Be Terminated While on Medical Leave in Alberta?

Being on medical leave does not automatically prevent an employer from terminating employment.

However, employers must proceed with great caution.

If the termination is connected to the employee’s disability, medical condition, or protected leave, the employer may face allegations of discrimination under Alberta’s human rights legislation.

Before terminating an employee who is on medical leave or another protected leave, employers should seek legal advice to ensure the decision is based on legitimate business reasons and complies with their legal obligations.

What Happens If There Is No Written Employment Contract?

Where there is no written employment agreement, or where the agreement does not contain an enforceable termination clause, the employee’s rights are generally determined by common law.

This often means the employee may be entitled to substantially more notice or severance than the minimum amounts set out in the Employment Standards Code.

For this reason, both employers and employees should have the employment relationship reviewed before assuming the statutory minimum notice applies.

Can an Employer Terminate an Employee During Probation?

Often, yes, but probation does not eliminate an employer’s legal obligations.

Whether an employee can be dismissed during probation depends on the wording of the employment agreement, the length of employment, and whether the employer acted in good faith.

Even probationary employees may have legal rights. Employers should not assume that probation allows termination for any reason or without following applicable legal requirements.

Employers should ensure their probationary clauses are properly drafted and legally enforceable.

What Is the Biggest Mistake Employers Make When Terminating an Employee?

One of the most common mistakes is treating termination as a single event rather than a process.

Employers often focus on the termination meeting itself while overlooking the steps leading up to it, such as documenting performance concerns, reviewing the employment agreement, calculating notice correctly, preparing the Record of Employment, and ensuring the termination is not connected to a protected ground or leave.

Most wrongful dismissal claims do not arise simply because employment ended. They arise because the process was poorly managed.

Every termination is different. A brief legal review before the termination meeting can help identify potential risks, confirm notice obligations, review employment agreements, and ensure the process is carried out fairly and lawfully.

Get Advice Before Making a Termination Decision

Kedge Anchor Law advises employers across Alberta on employee terminations, severance, employment agreements, workplace investigations, and HR compliance.

Using a structured Termination Checklist Alberta businesses can rely on may help identify risks before a decision creates an avoidable legal dispute.

This article provides general information about Alberta employment law and does not constitute legal advice. Every termination depends on its specific facts.