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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.
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.
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.
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.
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Workplace challenges can be difficult to navigate alone. Our firm is committed to helping employees understand their rights and find the right path forward.
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.
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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.
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.
We work with employees from all backgrounds who need trusted legal guidance during difficult workplace situations, including severance package reviews and wrongful dismissal claims.
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