Termination notice for employers

An employer or employee cannot terminate a contract of service unless written notice of termination is given within the period.

The notice period required by the employer and employee depends on the length of the employee's continuous employment with the employer. If the employee has been continuously employed for:

• Less than 3 months: no notice is required.

• 3 months or more but less than 2 years: 1 week's notice.

• 2 years or more but less than 5 years: 2 weeks' notice.

• 5 years or more but less than 10 years: 3 weeks' notice.

• 10 years or more but less than 15 years: 4 weeks' notice.

• 15 years or more: 6 weeks' notice.

The term "continuously employed" also includes seasonal workers who work for 2 or more consecutive seasons of at least 5 months each.

This does not apply if:

• the employee has committed serious misconduct or breached a material condition of the contract that warrants summary dismissal;

• the employer pays the employee wages equal to the normal wages covering the period of notice that the employer would otherwise be required to give;

• the employee is laid off for a period not exceeding 1 week;

• the employee is employed for a fixed term or a specific task that does not exceed 12 months and is not terminated before completion;

• the employee rejects a reasonable alternative job offer;

• the employee has reached the retirement age established by the company;

• the employer is required to terminate the contract of service due to unforeseeable events such as major equipment breakdowns, or economic or climatic conditions beyond the employer's control;

• the contract of service between the employer and the employee has existed for less than 30 days.

Notice period for employees

If the employee has worked for the employer for less than 3 months, no notice is required.

• If the employee has worked for the employer for 3 months or more, the employer needs to give:

  • 1-week notice if the employee has worked for the employer for less than 2 years

  • 2 weeks’ notice if the employee has worked for the employer for 2 years or more but less than 5 years

  • 3 weeks’ notice if the employee has worked for the employer for 5 years or more but less than 10 years

  • 4 weeks’ notice if the employee has worked for the employer for 10 years or more but less than 15 years

  • 6 weeks’ notice if the employee has worked for the employer for 15 years or more

• If the employee has worked for the employer for 2 or more consecutive seasons of at least 5 months each season, this counts as continuous employment.

This is unless:

• the employer mistreated the employee or endangered their health or well-being

• the employee pays an amount equal to what they would have earned during the notice period

• the employee is on a fixed-term contract that is not renewed or a specific task that is completed in 12 months or less

• the employee has been employed for less than a month.

If the employee does not have any of the apply and terminates their employment without notice, then the employer may deduct the necessary pay in lieu of notice from their next paycheck with their consent. If the employee does not consent, then the employer may apply to the director for the amount due.

NWT ESA s.37