When an employer terminates 50 or more employees from a single location within a two-month period, the British Columbia Employment Standards Act (the “ESA”) imposes additional obligations.
These “group termination” provisions are frequently underappreciated by employees who have shown incredible loyalty to a single employer.
For long serving employees, the stakes are particularly high.
For the purposes of this discussion, ‘long serving’ generally refers to employees with approximately 10 or more years of service, with entitlements increasing significantly beyond 20 years.
Group Termination: The ESA
Under section 64 of the ESA, an employer who terminates 50 or more employees at a single location within any 2 month period must give written notice of group termination to each affected employee, any applicable union, and the Minister of Labour.
If between 50 and 100 employees are affected, the employer must give at least eight weeks’ notice to employees, any applicable union, and the Minister. This requirement is separate from, and in addition to, each employee’s individual termination entitlements under section 63 of the ESA.
For an employee with significant tenure, this means that statutory notice under the ESA alone can total up to 16 weeks (8 weeks individual + 8 weeks group).
However, that is only the starting point.
The ESA Is a Floor, Not the Ceiling
The ESA establishes minimum standards. In many cases, it does not define the full extent of an employee’s entitlement on termination.
Employees who do not have valid employment contracts containing an enforceable termination provision will also generally have additional common law entitlements upon dismissal.
At common law, employees are entitled to “reasonable notice.” In Bardal v. Globe & Mail Ltd., the Court held that reasonable notice must be assessed having regard to factors that include the employee’s length of service, age, character of employment, and the availability of similar employment, giving regard to the employee’s experience, training, and qualifications.
For long serving employees, the common law notice period can be significantly greater than the individual’s ESA entitlements.
It is not uncommon for employees with 20 or more years of service to have reasonable notice entitlements in the range of 16 to 24 months, and in some cases higher. Age plays a significant role. Courts recognize that older employees often face greater difficulty securing new employment, which generally extends the notice period.
Working Notice and Severance Offers
Employers will sometimes provide “working notice,” allowing the employee to remain employed for a period of time before the termination takes effect. While this can reduce or eliminate statutory obligations, it does not necessarily satisfy common law requirements.
In many cases, employees are presented with severance packages that reflect only ESA minimums, with miniscule enhancements, rather than the employee’s full legal entitlement.
Critically, severance offers are almost always conditional on the employee signing a release. However, the employer cannot require you to sign a release in order to receive your ESA entitlement.
Why You Should Not Sign Immediately
Once a release is signed, the employee generally forfeits the right to pursue any further claim for compensation, even if the amount accepted is significantly below his or her full legal entitlement.
This is where a long serving employee may make a very costly mistake. After decades with the same employer, some may feel a natural inclination to accept what is offered. But the difference between the ESA payment and a full common law entitlement can be substantial, and may amount to tens or even hundreds of thousands of dollars.
Group terminations can create a sense of urgency, uncertainty and shock. Employers may impose deadlines for accepting severance packages. Employees may feel pressure to act quickly.
Take Time Before Making a Decision
In reality, those deadlines are not required by law. Employees are generally entitled to a reasonable opportunity to obtain legal advice before making a decision that will have lasting financial consequences.
Absent compelling reasons specific to the employee’s circumstances, an employee should seriously consider declining an offer that does not reasonably reflect his or her legal entitlement. Instead, the employee can pursue an improved settlement through negotiation and, if necessary, a wrongful dismissal claim and potentially other avenues.
Final Thoughts
If you are a long serving employee affected by a mass layoff, be aware that your legal rights may extend beyond the minimum standards set out in the ESA. Group termination provisions may increase your baseline entitlement, but they may not limit your ability to claim reasonable notice at common law.
Before signing anything, including a severance agreement or release, it is essential that you obtain independent legal advice from a lawyer who practices employment law. The cost of doing so pales in comparison to the potential value of your claim, and the risk of leaving significant compensation on the table.
Before signing anything, ensure you are fully informed.
Frequently Asked Questions
How much severance am I entitled to after 20 or more years of service in British Columbia?
While the Employment Standards Act sets minimum notice requirements, long serving employees are often entitled to significantly more at common law. Depending on factors such as your employment contract (if any), age, role, and length of service, reasonable notice for employees with 20 or more years of service is frequently in the range of 16 to 24 months.
Do I have to accept a severance offer from my employer?
No. Employees are not required to accept a severance offer. An employer’s initial offer is often negotiated, and employees may pursue a wrongful dismissal claim if a fair resolution cannot be reached.
What is a group termination under the British Columbia Employment Standards Act?
A group termination occurs where an employer terminates 50 or more employees at a single location within a two month period. In these circumstances, the employer must provide additional notice under section 64 of the Employment Standards Act, separate from each employee’s individual termination entitlements.
Can I negotiate my severance package in British Columbia?
Absolutely, yes. Severance packages are often negotiable. Employers should expect long serving employees in particular to negotiate. Employers may initially offer amounts based on minimum statutory obligations, but employees may be entitled to significantly more under the common law.
Should I speak to a lawyer before signing a severance agreement?
Yes. Once a severance agreement or release is signed, the employee typically gives up the right to pursue further compensation. Obtaining legal advice before signing can help ensure that the offer is a reasonable reflection of your full legal entitlement.
You may also be interested in this: How Severance Pay is Determined in Canada
If you have been dismissed as part of a group termination, have otherwise been dismissed, or simply want to understand your rights, we are here to help. Learn more about Inspire Law or book a consultation to discuss your specific situation.
This article is for general informational purposes only, does not constitute legal advice, and is not directed at any particular client or case. The views expressed herein are based on current law, specific facts and available information and may not be applicable to your specific situation or to any matter on which we may act. You should not rely on this material in place of consulting a qualified lawyer about your own situation.
About the Author
Susan Kootnekoff is a lawyer and founder of Inspire Law, an employment and human rights law practice that serves clients across British Columbia and beyond. She represents clients in employment related matters including wrongful dismissal claims, employment contract negotiations, severance negotiations, human rights complaints and workplace rights.
© 2026 Susan Kootnekoff, Barrister & Solicitor
