For a significant time, Alberta Courts have recognized a rough upper limit of 24 months’ common law notice (or pay in lieu of notice) upon termination of employment. In Lischuk v K-Jay Electric Ltd., 2025 ABQB 460, the Alberta Court of King’s Bench (ABKB) has, for the first time, awarded a common law reasonable notice period beyond this 24-month cap.
Glenn Lischuk worked for K-Jay Electric Ltd. for 34 years, starting as a Labourer at the age of 21 and working his way up to the position of General Manager. During that same period, K-Jay grew from a small business operating out of a residential garage to one of the top companies in the electrical contracting industry. Mr. Lischuk’s employment was terminated without cause at the age of 58 years when K-Jay decided that a change in management style was needed.
K-Jay did not have a written employment agreement with Mr. Lischuk and was therefore entitled to common law reasonable notice upon the termination of his employment. When determining the appropriate notice period, the ABKB noted that, while there is no absolute upper limit on reasonable notice, exceptional circumstances are required in order to find a notice period beyond 24 months. The ABKB considered the exceptional circumstances recognized by Ontario Courts, which include:
- Working for only one employer for the entirety of an employee’s working life, combined with age and significant responsibility at time of termination
- Employee specialization, such that skills are tailored to and limited by specific work experience
- Termination that amounts to a forced retirement when an employee has specialized, non-transferable skills.
The ABKB found that in Mr. Lischuk’s case there were exceptional circumstances which warranted a 26-month notice period. Mr. Lischuk’s 34 years of service to one employer in a key employee position meant that K-Jay had severely limited Mr. Lischuk’s ability to find alternative work, effectively forcing him into retirement. Ironically, the “old school mentality” that had been the reason for K-Jay’s termination of Mr. Lischuk’s employment was a factor in increasing the notice period, as that mentality would also be difficult to sell to prospective employers.
Mr. Lischuk was awarded total net damages of $1,522,841.33, plus interest and costs. That amount included accrued but unpaid vacation pay, base salary, Christmas bonuses and annual bonuses, as well as damages in lieu of benefits.
What does this mean for employers?
This case highlights the importance of having enforceable employment contracts in place which limit an employee’s entitlement to notice upon termination of employment. Circumstances would have been drastically different for K-Jay had they required Mr. Lischuk to sign an employment agreement, even part-way through his employment when circumstances warranted (e.g. during a promotion). Notably, the lack of an employment agreement in this case also entitled Mr. Lischuk to a significant amount of accrued but unused vacation pay, as well as compensation for bonus entitlements during the entire reasonable notice period, both of which could also have been limited by a valid employment agreement.
Our labour and employment team is well versed in this area and can assist with drafting or reviewing employment agreements to ensure that your interests are protected.
Note: This article is of a general nature only and is not exhaustive of all possible legal rights or remedies. In addition, laws may change over time and should be interpreted only in the context of particular circumstances such that these materials are not intended to be relied upon or taken as legal advice or opinion. Readers should consult a legal professional for specific advice in any particular situation.
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