Before You Sign: Why a Lawyer Should Review Your Termination Letter in Alberta
Being terminated from a job is stressful. Often, employees are handed a termination letter and told they must sign quickly to receive severance or final pay. In that moment, many people assume the offer is standard—or that they have no choice.
In Alberta, termination letters frequently do not reflect an employee’s full legal entitlements. Once signed, these documents can permanently limit your rights. This article explains why having a lawyer review your termination letter is critical, what employers often include in these agreements, and how legal advice can protect you before it’s too late.
What Is a Termination Letter?
A termination letter (sometimes called a termination package or separation agreement) typically sets out:
- The effective date of termination
- Severance or notice being offered
- Benefits continuation, if any
- A release of claims against the employer
While the letter may appear straightforward, it is a legally binding agreement once signed.
Why You Should Never Assume the Offer Is Fair
Many employees believe termination pay is strictly limited to Alberta’s Employment Standards Code. In reality, the minimum standards are often far less than what an employee may be entitled to under common law.
Factors that influence severance entitlements include:
- Length of service
- Age
- Position and seniority
- Availability of comparable employment
Employers often offer only the statutory minimum, even when common-law notice would be significantly higher.
Common Clauses That Can Limit Your Rights
Termination letters frequently include provisions that deserve close scrutiny, such as:
- Broad releases waiving all legal claims
- Confidentiality or non-disparagement clauses
- Repayment obligations or offsets
- Strict deadlines to accept the offer
Once you sign, you generally give up the right to seek additional compensation—even if the offer was inadequate.
The Risk of Signing Under Pressure
Employers sometimes impose short deadlines or suggest that the offer will be withdrawn if it is not accepted quickly. In Alberta, employees are not required to sign immediately.
You are typically entitled to:
- Take time to review the agreement
- Seek independent legal advice
- Ask questions or negotiate the terms
Pressure tactics are a red flag and often signal that the offer should be reviewed carefully.
How Termination Letters Interact With Employment Contracts
If you signed an employment contract—especially one introduced after you started working—its enforceability may affect your termination rights.
Some termination clauses are invalid or unenforceable, meaning the employer cannot rely on them to limit severance. Understanding whether your contract is legally binding is critical before accepting a termination offer.
Related reading: are contracts signed after you started your job enforceable in Alberta.
What a Lawyer Looks for When Reviewing a Termination Letter
A lawyer reviewing a termination letter will assess:
- Whether the severance meets common-law standards
- Whether termination clauses are enforceable
- Whether statutory minimums are met
- Whether the release language is overly broad
- Whether negotiation could result in improved compensation
In many cases, legal review leads to better outcomes without the need for litigation.
Why Legal Advice Matters
Termination decisions have lasting financial and professional consequences. Legal advice can help you:
- Understand your true entitlements
- Avoid signing away valuable rights
- Negotiate a fair severance package
- Move forward with clarity and confidence
Learn more about how Libra Law supports employees and employers through its employment law services in Alberta.
You may also find additional guidance in Libra Law’s employment-related articles, which address common workplace issues faced by Albertans.
Get Advice Before You Sign
If you have received a termination letter or severance offer, do not assume it is final. A short legal review can make a meaningful difference.
The employment law team at Libra Law provides practical, plain-language advice to clients across Alberta. You can contact our firm to discuss your termination letter and understand your options before making a decision.
This article is for general informational purposes only and does not constitute legal advice. To obtain advice specific to your situation, please consult a lawyer or qualified professional.
