Termination of employment in Manitoba
As an employer in Manitoba, it’s unfortunate when you are forced to terminate an employee. However, when doing so, it’s essential that you remain compliant with Manitoba’s Employment Standards Code (ESC) to stay compliant and protected from Wrongful Dismissal claims, as well as potential fines. To do so, it’s essential you provide the terminated employee with the entitlements they are owed in accordance with the ESC.
Terminations for cause & without cause
In Manitoba, there are two forms of terminations:
- Terminations for cause
- Terminations without cause
Termination for cause involves terminating an employee with a valid reason for doing so. In these cases, the employer is not required to provide termination notice. However, it’s important that you are able to prove a serious wilful misconduct and/or breach of contract as the burden for proof is high.
Examples of this include:
- Long periods of unexplained absences
Termination without cause occurs when the employer does not provide a reason for the termination and is much more common. And as an employer in Manitoba, you are not required to provide a reason for terminating an employee. However, you are required to provide termination notice, termination pay, or a combination of both.
An employee is entitled to written, reasonable notice of termination if they have been working for a company for more than one month. The amount of notice the employee is entitled to is based on their Length of Employment.
In Manitoba there are certain notice responsibilities that the employee has to fulfill as well.
- If the employee has been employed for more than 30 days, but less than a year, they must give a week’s notice.
- If the employee’s period of employment is one year, then they must give two weeks’ notice.
The chart below should provide guidance on an employees notice entitlements based on their period of employment.
Length of employment
At least 30 days but less than one year
At least one year and less than three years
At least three years and less than five years
At least five years and less than ten years
At least ten years
What is Termination Pay?
An employer can opt to provide Termination Pay In lieu of notice. This option is ideal for those who do not want the employee working through the notice period and would prefer to sever ties. employer may choose this option if they do not want the employee to work through the notice period and would prefer to provide a lump sum payment.
Employers can choose to let employees work for part of their notice period and have the remaining wages paid out for the rest of their notice period. In Manitoba, vacation and overtime pay are not added to the Termination Pay amount.
Still need help?
If you need help understanding Terminations in Manitoba, Employer Line is here to help. Call today at 1 (204) 201-1609 and an expert will be happy to walk you through it.