Key Differences In Employment Law Between Canada And The United States

At Will Employment

Many employees in the United States are employed "at will", meaning that they can be terminated at any time without notice or pay in lieu of notice, even if there is no just cause for termination. In Canada, there is no at-will employment. Where there is no cause or resignation, employees are entitled to some type of notice or pay in lieu of notice upon termination. A good employment contract can limit the amount of notice or severance pay to applicable statutory minimums (within each provincial jurisdiction), but Canadian courts have largely interpreted employment agreements strictly against the employer. Employers seeking to limit termination payments in Canada must use very precise language in the employment agreement.