In most Canadian provinces, employment standards legislation focuses on providing notice of termination or pay in lieu, but does not explicitly require employers to continue benefits during the notice period. This is the case in Alberta, British Columbia, Saskatchewan, Manitoba, Newfoundland and Labrador, Nova Scotia, New Brunswick, and Prince Edward Island. Ontario is the main exception, where the law clearly requires benefit continuation during the statutory notice period.

However, across all provinces, common law plays a significant role. Courts generally view the notice period—whether statutory or extended—as a time during which employees should receive full compensation, including benefits. If benefits are discontinued early, employers may be required to compensate employees for the loss or even cover out-of-pocket expenses that would have been insured, creating additional financial risk.

Because of this, the absence of a statutory requirement does not eliminate employer obligations. In practice, employers in all provinces face similar exposure if they do not continue benefits during the notice period. This is especially important in wrongful dismissal claims, where courts often award damages that include the value of lost benefits.

As a result, the most widely accepted best practice for multi-province employers is to continue benefits through at least the statutory notice period, and ideally through any enhanced severance period offered. Where continuation is not possible, employers should consider providing compensation in lieu and ensure employment agreements clearly address benefits during termination, while always meeting minimum statutory requirements.

-HRInsider Staff