Termination Notice or Pay in Lieu of Notice

Termination Notice

No employer shall terminate the employment of an employee who has been employed by that employer for a period of 90 days or more unless the employer:

  • gives the employee written notice of termination indicating the date of the notice is given and the date on which the employment is terminated; or

  • pay the employee termination pay

This does not apply if:

  • it is temporarily laid off

  • who is employed in an activity, business, work, trade, occupation or profession that is exempted from regulation

  • termination with just cause

  • whose employment is terminated because the employee has refused an offer by the employer of reasonable alternative work

  • an employee is temporarily layoff and does not return to work within 7 days

Notice Period

Notice of termination must be given to an employee in advance of the date of termination by a period of at least 2 weeks plus one additional week for each year of employment over two years, to a maximum of 8 years

  • If termination pay is given to an employee, the amount of termination pay must be equal to the wage and benefits to which the employee would have been entitled, had they worked for the notice period

Termination Pay

If an employer gives notice of termination to an employee, they must do so at least two weeks before the termination date, with an additional week for each year of employment up to a maximum of eight weeks.

This notice period cannot overlap with the employee's annual vacation. If an employee has worked for the same employer more than once, periods of employment will be considered as one period for the purposes of notice, as long as no more than 90 days have passed between each period.

Note: During the notice period, the employer cannot reduce an employee's wages or make changes to their employment terms or conditions.

The employer must continue to pay the employee's wages and benefits during the notice period, even if the employee does not work during this time.

If an employee continues to work after the specified termination date in the notice, the notice is considered void.

If an employee receives termination pay, it must be equal to the wages and benefits they would have earned if they had worked their normal hours during the notice period.

NWT ESA s.37