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ARTICLE · 28 AUGUST 2025

Alberta Employer Ordered To Pay 26 Months' Termination Pay In Exceptional Wrongful Dismissal Case

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For the first time in Alberta, a court has awarded more than 24 months' reasonable notice in a wrongful dismissal case. In Lischuk v K-Jay Electric Ltd. ("Lischuk")...

CanadaEmployment and HR
Ian Wilson
Ian Wilson
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For the first time in Alberta, a court has awarded more than 24 months' reasonable notice in a wrongful dismissal case. In Lischuk v K-Jay Electric Ltd. ("Lischuk"), the Alberta Court of King's Bench ordered an employer (the "Company") to pay an employee with 34 years of service, and significant minority shareholder (the "Plaintiff"), 26 months termination pay.

The decision marks a significant departure from the province's long-standing, unofficial 24-month cap. In addition to breaking the reasonable notice ceiling, the Court addressed key employment law issues including entitlement to vacation pay, the appropriate length of the reasonable notice period, mitigation of damages, entitlement to bonuses during the notice period, and whether the Plaintiff could recover for increased share value during the reasonable notice period under a Unanimous Shareholders Agreement ("USA").

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