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Severance Pay for Construction Workers

Despite what your employer may claim, losing your job in the construction industry doesn’t mean forfeiting your rights. The belief that construction workers aren’t owed severance is a widespread misconception that employers rely on to pay less.

TOLD YOU’RE NOT OWED SEVERANCE?

Understanding the Exemption — and Your Rights

It’s true that Section 5 of the Alberta Employment Standards Regulation exempts construction workers from minimum statutory termination pay. However, this legal exemption is commonly misunderstood. It only removes certain minimum statutory entitlements — it does not remove your fundamental common law right to reasonable notice, also known as severance.

What Must Your Employer Prove?

To avoid paying severance, your employer must prove two things: that a legally recognized “industry custom” exists to deny severance to workers like you, and that this custom is notorious, certain, and reasonable. In our experience, courts are highly skeptical of this defence — as demonstrated in key Alberta decisions like Locke v. Chandos Construction Ltd., employers often fail to meet this heavy legal burden because they cannot provide compelling, concrete evidence of such a fixed custom.

Lluc Cerdà
Quote

Employers in construction lean on ‘industry custom’ like it’s a settled fact, but courts demand real proof — not just a habit of paying nothing. When they can’t produce that proof, the exemption evaporates and full severance is owed.

Lluc Cerdà Founder
10y+ Experiences
1000+ Clients
99% Resolved Cases
Our Process

Simple Steps to Protect Your Severance

Our structured approach ensures you receive clear advice, strong legal support, and the confidence to move forward at every stage.
01

Submit Your Information

Share your situation and severance offer with our team online or by phone.
02

Case Review by a Lawyer

Meet with an experienced employment lawyer to understand your rights and options.
03

Strategy & Advice

Meet with an experienced employment lawyer to understand your rights and options.
04

Negotiation & Representation

Meet with an experienced employment lawyer to understand your rights and options.

our services

Explore Our Employment Law Services for Employees in Calgary, Alberta

Workplace issues can be overwhelming, but you don't have to face them alone. We help employees across Calgary, Alberta understand their legal rights and make informed decisions about the next steps.

How We Help

Defeat the “Industry Custom” Defence

We assess whether Section 5’s statutory exemption actually applies to your role, and whether your employer can meet the demanding burden of proving a notorious, certain, and reasonable industry custom to deny severance.

Where that burden isn’t met — as it often isn’t, per decisions like Locke v. Chandos Construction Ltd. — your common law right to reasonable notice is affirmed, and we pursue full severance based on the Bardal factors.

  • Assessment of whether the Section 5 statutory exemption genuinely applies to your role.
  • Scrutiny of any “industry custom” your employer claims, testing it against the notorious, certain, and reasonable standard.
  • Identification of gaps in your employer’s evidence, informed by decisions like Locke v. Chandos Construction Ltd..
  • Confirmation of your common law right to reasonable notice where the custom defence fails.
  • Calculation of full severance under the Bardal factors once wrongful dismissal is established.
Why It Matters

A Misconception Shouldn’t Cost You Months of Pay

Many construction workers accept nothing because they’re told the industry doesn’t pay severance — without anyone testing whether that’s actually true. When the employer can’t prove a genuine industry custom, the result isn’t a reduced payout; it’s a full wrongful dismissal claim with severance based on your entire career.

Exemption Isn’t Elimination

Section 5 removes certain statutory minimums, not your common law right to reasonable notice. The two are often confused, and that confusion costs workers real money.

Courts Demand Real Proof

An employer can’t just assert an “industry custom” — they must prove it’s notorious, certain, and reasonable. That’s a high bar, and many employers can’t clear it.

testimonials

Their Stories, Our Pride

Don't just take our word for it. Hear from the employees we've helped navigate wrongful dismissal, severance negotiations, and workplace disputes and the outcomes we secured for them.

I felt supported every step of the way.

Employment Law Advocates made a stressful situation so much easier to navigate. Their team was responsive, knowledgeable, and fought hard to secure the outcome I deserved.

Amy B.

Wrongful dismissal handled with care

After ten years with my employer, I was terminated without cause or proper notice. Lluc and his team explained my rights clearly and built a strong case from day one. They kept me informed at every stage and secured a settlement that recognized my years of service.

Daniel R.

Finally felt heard at work

I endured months of harassment before I found the courage to seek help. The team treated my situation with real compassion and took my concerns seriously when others hadn't. They guided me through the process and helped me reach a resolution I could live with.

Priya S.

Reclassified and made right

I'd worked as a "contractor" for years, missing out on pay and protections I was actually entitled to. The team recognized the misclassification immediately and fought to recover what I'd lost. Professional, responsive, and genuinely on my side throughout.

Jordan L.

Strong advocacy from start to finish

I was accused of misconduct and terminated for cause, and I didn't know where to turn. Employment Law Advocates challenged the allegations head-on and stood by me through a difficult process. Their experience and confidence made all the difference in the outcome.

Rachel M.
Serving All Industries

Legal Support Across Industries

From oil and gas to healthcare, technology, construction, finance, and more — our team has extensive experience helping employees navigate complex workplace disputes.

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    FAQs

    Have Questions? Get Answers

    Construction layoffs come with a lot of myths about what you’re owed. Here’s what Calgary workers ask us most.
    No — that’s a widespread misconception. Section 5 of the Alberta Employment Standards Regulation exempts construction workers from certain minimum statutory termination pay, but it does not remove your common law right to reasonable notice, which is often worth significantly more.
    They must prove a legally recognized “industry custom” exists to deny severance to workers like you, and that the custom is notorious, certain, and reasonable. Courts are skeptical of this defence, and many employers can’t produce the concrete evidence required.
    Your common law right to reasonable notice is affirmed. Your termination is treated as a wrongful dismissal, and you’re entitled to full severance calculated under the Bardal factors — the same as any other Alberta employee.
    Not automatically. Whether Section 5 applies depends on the nature of your work, and even where it does apply, it only affects statutory minimums — not your common law entitlement. Each situation needs to be assessed on its own facts.
    It’s one of the key Alberta decisions showing how employers often fail to meet the heavy burden of proving an industry custom against severance. Courts have consistently required real, concrete evidence — not just a general practice or assumption.
    Generally two years from your termination date in Alberta. Because employers frequently rely on the industry-custom myth to avoid paying anything, it’s worth having your situation reviewed well before you assume there’s nothing to claim.