BC ESA – when an employer terminates employment – pay employee in 48 hrs

[Trisha Drew]

#97489

Forum: Private

Hello, I understand that when we terminate an employee in BC as per the Employment Standards Act we must pay the employee within 48 hours. But, do they have to receive the pay in 48 hours from their last day or can we transmit it to them within that time frame from our payroll system?

I ask this question as our payroll system (ADP) only allows us to transmit payroll over a three day period (Day 1 transmit pay, day 2 funds are withdrawn, day 3 payroll is transmitted in the employees account. We can issue payment through our banking direct to the employee but then the taxes aren’t remitted directly. For that reason we would prefer to transmit pay to the employee directly through our payroll system.

We would appreciate your insight.

Thank you.

[Haley O’Halloran]

#97491

Great question — this is a common compliance issue in BC.

Employment Standards Act Requirement

Under section 18 of the BC Employment Standards Act (ESA), when employment ends (whether by resignation or termination), the employer must pay all wages owing within specific timelines:

-If the employee is terminated: within 48 hours after the last day of employment.
-If the employee quits: within 6 days after the last day of employment.

The key phrase here is “must pay all wages owing” — which refers to when the employee actually receives payment, not just when the employer initiates it.

What That Means Practically

The ESA interprets “pay” as the employee having access to the funds, not merely the employer having processed or transmitted them. Therefore:

Submitting payroll to ADP within 48 hours does not satisfy the requirement if the funds won’t be deposited until after that 48-hour window.

The law requires that the employee be paid (i.e., the money is in their hands or account) within 48 hours of termination.

Options for Compliance

Given your ADP system’s three-day processing cycle, here are a few compliant options:

-Issue payment directly through your bank within the 48-hour window (e.g., e-transfer or direct deposit), even if this requires manual handling of taxes.

-Provide a physical cheque or bank draft within 48 hours — this meets the “paid” requirement.

-If possible, request ADP’s “off-cycle” or “expedited” payroll run — many systems can handle termination pay within 1–2 days for compliance purposes.

You can then record the payment manually in ADP and handle tax remittances in the next regular payroll cycle (consult your payroll provider or CRA for the cleanest method).

Recommended Next Steps

Confirm with ADP whether they offer a “termination pay run” or similar expedited option.

If not, pay manually within 48 hours, then enter the payment into ADP retroactively to keep records consistent and ensure CRA remittances are accurate.

Keep documentation showing when and how the employee was paid, in case of an Employment Standards Branch inspection.

I hope this helps!
-HRInsider Staff

[Trisha Drew]

#97493

Hello, thank you very much! This information is very helpful. I appreciate it very much and will proceed to inquire with ADP.

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