Tagged: Voluntary Termination
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Hello,
I know with involuntary terminations employers are required to give employees a chance to find alternative employment and must keep them on benefits and payroll for a certain amount of time. However, for voluntary terminations what does the employer need to provide? Specifically for Alberta and Saskatchewan. In the U.S. we provide a termination letter stating we accepted their resignation/retirement. The date and amount of their final payroll, Vacation balance payout information, and a list of our benefits providers should they need to contact them. Is there anything else we should provide?
Thank you.
In Alberta and Saskatchewan, when an employee voluntarily resigns or retires, employers have specific obligations to fulfill. While the practices you’ve implemented in the U.S.—such as providing a termination letter, final payroll details, vacation payout information, and benefits provider contacts—are comprehensive, it’s important to ensure compliance with the specific requirements in these Canadian provinces.
Alberta:
Final Wages: Employers must pay all outstanding earnings, including regular wages, overtime, and vacation pay, within 3 consecutive days after the employee’s last day of work.
Record of Employment (ROE): Employers are required to issue an ROE to the employee within 5 calendar days of the end of the pay period in which the employee’s last day of work occurred. This document is essential for employees applying for Employment Insurance benefits.
Saskatchewan:
Final Wages: All outstanding wages, including vacation pay, must be paid to the employee within 14 days of their last day of work.
Record of Employment (ROE): Similar to Alberta, employers must provide a Record of Employment promptly, as it is necessary for employees seeking Employment Insurance benefits.
Additional considerations for both provinces:
Resignation Notice: Employees are generally expected to provide written notice when resigning—at least one week if employed more than 90 days but less than two years, and two weeks if employed for two years or more. However, if an employee does not provide the required notice, employers are still obligated to fulfill their responsibilities regarding final pay and documentation.
Benefits Continuation: Upon resignation, benefits typically cease as of the employee’s last working day unless otherwise specified in the employment contract or benefits plan. Providing information about benefits cessation and options for continuation or conversion (e.g., converting group life insurance to an individual policy) is advisable.
Exit Procedures: Collecting company property (such as access cards, equipment, and uniforms) and revoking access to company systems should be conducted on or before the employee’s last day. Ensuring all administrative tasks, like approving final timecards and completing termination forms, is also essential.
While your current practices align closely with the requirements in Alberta and Saskatchewan, it’s crucial to adhere to the specific timelines and documentation standards mandated in each province. Consulting with an employment law professional will help provide you with further guidance to ensure you are complying with all laws and regulations in your specific situation. Thank you for your question!
-HRInsider Staff
Thank you so much for that! I knew about ROE, but we work with ADP Global and they say we cannot produce an ROE until the employee stops getting paid by us. Is that true? How do you escalate getting an ROE from your payroll provider?
If an employee continues to receive payments (e.g., severance or termination pay) beyond their last working day, the interruption of earnings — and thus the requirement to issue an ROE — occurs only after these payments conclude. This means that ADP’s policy of not producing an ROE until the employee stops receiving payments aligns with Service Canada’s guidelines.
To expedite the issuance of an ROE from your payroll provider, consider the following steps:
Review Internal Policies: Ensure that your organization’s policies align with Service Canada’s requirements for ROE issuance, particularly concerning the timing of final payments and the definition of an interruption of earnings.
Communicate with ADP: Reach out to your ADP account representative to discuss your specific needs and any potential adjustments to your payroll processing that could facilitate timely ROE issuance.
Utilize ROE Web: If immediate issuance is necessary and feasible, consider using Service Canada’s ROE Web platform to manually issue ROEs. This secure online service allows employers to create and submit ROEs directly to Service Canada.
CANADA.CABy proactively managing the timing of final payments and maintaining open communication with your payroll provider, you can help ensure compliance with ROE issuance requirements and support your employees’ access to Employment Insurance benefits.
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