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  • vickyp
    Keymaster
    Post count: 4923

    When calculating the 13 week ADW for termination pay for employee’s whose wages vary…

    1. If the employee has been on leave for several months prior to the potential termination date but has now RTW for a few weeks, when does the 13 week period start and end?
    2. Does the 13 week period need to include the weeks before the employee went on leave (and skip the weeks the employee was on leave)? OR do we take into account the weeks on leave?
    3. How far back do you need to go for the 13 week period if the employee has been on leave for an extended period of time (i.e. 6-12 months)?
    Private employer in Alberta.

    vickyp
    Keymaster
    Post count: 4923

    The answer really depends on whether, when the person does work, the wages earned vary from period to period.
    If the answer is yes, the rule is given by sub-section 57(3) – in which case you start at the termination date and work backward, looking for weeks (any 7 consecutive days ) where the person worked. Add the wages earned in each week worked and stop when you get to 13 (i.e. skip over any unworked leave). Then divide these total wages by 13 to get an average.
    If the answer is no, then sub-section 57(1) applies and the termination pay owing is what the person would have earned for regular hours during the notice period.

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