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The Payments in Lieu of Notice Act in Canada outlines the conditions under which employers can provide compensation instead of giving advance notice of termination. This act is critical for ensuring fair treatment during the termination process and helps employees understand their rights to payments in lieu of notice in Alberta.
If you don't provide enough notice of resignation, it is a wrongful resignation and you may be liable for damages. If you resign wrongfully, you are required to take reasonable steps to lessen the damages to your employer.
An employee could be entitled to get 'payment in lieu of notice' (PILON). This means they stop work straight away but still get paid for their notice period. The employer might have written this into the employee's contract or agreed it with them verbally.
How much notice you have to give usually depends on how long you've worked at the job: If you have worked less than 3 months, no notice is needed. If you have worked more than 3 months but less than 2 years, 1 weeks' notice is needed. If you have worked 2 years or more, 2 weeks' notice is needed.
Termination pay (pay in lieu) The employer may not wish to have their employee work out a notice period. In this case they may give the employee pay in lieu in the amount the employee would have earned had the employee worked through the required notice period.
If you have worked less than 3 months, no notice is needed. If you have worked more than 3 months but less than 2 years, 1 weeks' notice is needed. If you have worked 2 years or more, 2 weeks' notice is needed.