Severance compensation is a vital financial back up mechanism to employees that become unemployed in a short notice. However, it is unfortunate that a large part of employees in Alberta receives lower severance than what they deserve. A severance pay estimator for Alberta employees can help workers better understand their rights and what they are owed. This paper will discuss the reasons why this occurs and what employees can do to make sure they are paid the right amount.
What is Severance Pay?
Severance pay is the package given to an employee when a company fire him or her in most cases without justification. It is to assist in closing the financial gap as the employee seeks new working opportunities. Severance pay is often determined according to the length of service of the employee, the position and the salary of the employee.
The Code of Employment Standards in Alberta specifies minimum severance conditions of the employees, yet many of the employees get way less than what they are entitled to. This difference tends to occur because of misapprehension of the computations and legal rights of severance pay.
Why Do Most Alberta Employees Get Less Severance?
A major factor that affects the Alberta employees in getting lower severance than they are entitled to is simply due to lack of awareness on their rights with regards to the law. Most of the employees are not conversant with the variables that are considered in computing severance pay and would not be aware that they can also be compensated more. In Alberta, there is the Employment Standards Code that provides the minimum severance pay requirements. These instructions are, however, not always accurate on the part of the employers. In most cases they can give the minimum or even ignore some factors that can raise the severance such as length of service of the employee, special conditions, or the current company policies. The other cause of poor severance payment is that most employees do not bargain over their severance package. Employees are usually signing severance contracts without thoroughly understanding the contracts when they are terminated. This can be such as foregoing of some rights or accepting a lower offer than they are supposed to.
Common Pitfalls in Severance Calculations
The severance payout of long term employees is much more than that of the short term employee in Alberta. But the employers do not necessarily put into consideration long tenure in computing severance. This is one of the major mistakes and the employees end up getting way less than they are supposed to. Severance compensation is not the pay alone. In most situations, the employees have a right to other perks, like vacation payment, medical cover of insurance, and bonuses. These other factors can be ignored by employers in their calculations of severance pay resulting in a reduced payout. In the calculation of severance, the employees in jobs where they receive bonuses or commission should also be factored in the payment. Most employers unfortunately fail to take into consideration these earnings when calculating the severance sum.
How a Severance Pay Estimator for Alberta Employees Can Help
A severance pay estimator for Alberta employees can be an invaluable tool for understanding your rights and the amount you are entitled to receive. With an estimator, you can calculate your severance pay by inserting some details like the number of years you have worked, your salary, or some other associated details. This tool will be able to leave you in a position to bargain the fair severance package. The advantage of using a severance pay estimator is that you will have the right estimates. Estimators put into consideration all the variables that are required in the estimation and thus you are guaranteed a perfect estimation of your severance pay. Having a clear picture of the right severance value, you will be in a more advantageous position to bargain between yourself and your employer. An estimator of severance assures that the figures do not exceed what is provided in the employment laws of Alberta thus lowering the chances of being underpaid.
Steps to Take if You Feel You’ve Been Shortchanged
The first action I want you to take is to go through the severance package provided to you. Ensure every factor such as salary, benefits as well as bonuses are factored into the computation. In case you think you deserved a better severance, an employment lawyer will be a good place to refer to. A lawyer will be able to evaluate your case and assist you in knowing whether your severance compensation is under-estimated. When you have the chance, it is worth bargaining over your severance package. A severance pay estimator for Alberta employees can give you a solid starting point for this conversation. Knowing your rights, you will be able to demand reasonable payout of severance.
Conclusion
Alberta employees are not entitled to the severance owed to them as most are receiving less severance than they are due, however, there are measures that can be taken to make sure that you are entitled to the severance that you are due. By educating yourself about your rights and using tools like a severance pay estimator for Alberta employees, you can better understand your entitlement and negotiate for a fair severance package. It is important to remember that the employers will not necessarily provide the entire severance package unless a gentle nudge is applied, that is why it is extremely important to be proactive and consult the appropriate counseling to secure your financial future.
FAQs
What is the minimum severance pay in Alberta?
The minimum severance pay in Alberta is based on the Employment Standards Code and depends on the length of employment. For example, employees with at least three months of service are entitled to one week of severance pay.
How is severance pay calculated in Alberta?
Severance pay is typically calculated based on your length of service and salary. Factors such as bonuses, commissions, and benefits may also be included in the calculation.
Can I negotiate my severance pay?
Yes, employees can negotiate their severance pay. It’s important to understand your rights and use tools like a severance pay estimator to determine if you’re being offered a fair amount.
How can I calculate my severance pay?
You can use a severance pay estimator for Alberta employees to calculate your severance pay. This tool factors in various elements such as salary, length of service, and additional benefits.
What should I do if I think my severance pay is too low?
If you feel your severance pay is too low, review your severance agreement, consult with an employment lawyer, and consider negotiating for a better package.