Construction workers in Canada can be entitled to substantial severance pay when they’re fired or laid off. Special construction industry rules don’t automatically eliminate your right to compensation.

Whether you’re a labourer, tradesperson, foreman, supervisor or project manager, your severance rights depend on your employment status, contract and circumstances. Full severance can reach up to 24 months’ pay.

? Construction Worker Severance: Being exempt from minimum termination pay under provincial employment standards doesn’t automatically mean you’re owed nothing. Non-unionized construction employees can still qualify for substantial compensation.

On This Page:

Are Construction Workers Entitled to Severance Pay?

Yes. Non-unionized construction employees can qualify for severance pay when their employment ends, even if they’re exempt from certain minimum termination-pay rules.

This includes employees working in:

  • Construction labour and skilled trades
  • Site supervision and foreman positions
  • Project management and estimating
  • Construction administration and management

Your job duties, employment contract and whether you’re unionized help determine which rules apply.

Learn more about severance pay in Canada.

How Much Severance Pay Do Construction Workers Get?

Construction employees can receive up to 24 months’ pay when terminated without cause. Your full entitlement depends on factors including:

  • Age: Your age when employment ends
  • Length of service: How long you worked for the employer
  • Position: Your trade, responsibilities and seniority
  • Job availability: How difficult it is to find comparable work
  • Employment contract: Whether enforceable terms limit your compensation

There is no automatic one-week-per-year formula for full severance. Even construction labourers with relatively short service can be owed several months of pay.

Use our free Severance Pay Calculator to estimate your entitlement.

Construction Severance Rules in Ontario, Alberta and BC

Construction employment has special rules that differ by province. These affect minimum termination entitlements but don’t automatically settle your full severance rights.

Ontario

Qualifying construction employees are exempt from minimum termination notice and termination pay under Ontario’s Employment Standards Act. They are also exempt from statutory ESA severance pay.

However, non-unionized construction workers can still be entitled to common-law severance. Your employment contract and the nature of your work determine whether that compensation is available.

Alberta

Alberta exempts qualifying construction employees from minimum termination notice and pay under its Employment Standards Code.

That exemption doesn’t automatically remove an employee’s right to reasonable notice or compensation under common law.

British Columbia

BC exempts employees working at construction sites for employers whose principal business is construction from certain minimum termination compensation requirements.

Non-unionized construction employees can still have common-law severance rights, as demonstrated by our firm’s successful BC construction-worker case below.

Do Construction Workers Get Severance After a Layoff?

Yes. A construction layoff can trigger severance rights, even when your employer describes it as temporary or seasonal.

The outcome depends on your employment agreement, the reason for the layoff, the length of the work interruption and whether your employer recalls you.

A construction company’s loss of a project or contract doesn’t automatically eliminate its obligation to compensate terminated employees.

See our guide to layoffs in Canada.

Do Independent Construction Contractors Get Severance?

Being labelled an independent contractor doesn’t automatically mean you have no termination rights.

There are three important distinctions:

  • Employee: You work as part of the company’s business and have employment-law protections.
  • Dependent contractor: You operate as a contractor but rely heavily on one company for your income. You can be entitled to reasonable notice or compensation.
  • Independent contractor: You operate your own business. Your termination rights depend primarily on your agreement and contract law.

If you’ve worked almost exclusively for one construction company for years, don’t assume the word “contractor” in your agreement settles your rights.

Learn more about dependent contractor severance rights and independent contractor rights in Canada.

Real Construction Worker Severance Wins

Samfiru Tumarkin LLP has successfully represented construction employees in wrongful dismissal cases, securing significant compensation for workers with different roles and lengths of service.

BC Construction Labourer Awarded 4.5 Months’ Severance

In Snider v. Reotech Construction Ltd., our firm represented a construction labourer who wasn’t recalled after a temporary layoff.

The employee had worked for the company for just over two years. The court rejected the employer’s reliance on an unenforceable termination clause and awarded 4.5 months’ compensation.

Read the full BC construction-worker case result.

Ontario Construction Supervisor Awarded 20 Months’ Severance

In Nezic v. Dom-Meridian Construction Ltd., our firm represented a 74-year-old construction supervisor dismissed after more than 31 years of employment.

Despite the seasonal nature of the work, the court recognized his long service and awarded 20 months’ severance pay.

Read the full Ontario construction-worker case result.

Every case depends on its facts. These decisions show that both construction labourers and supervisors can be owed substantial compensation.

Construction Worker Severance Pay: Frequently Asked Questions

Can a Construction Worker Be Fired Without Severance?

Special employment standards exemptions don’t automatically eliminate common-law severance rights. Non-unionized construction employees can be entitled to substantial compensation after termination.

Do Seasonal Construction Workers Get Severance?

Seasonal employment doesn’t automatically eliminate severance rights. Your employment history, recall arrangements and contract determine the compensation you’re owed.

Do Construction Supervisors and Project Managers Get Severance?

Yes. Non-unionized supervisors and project managers can qualify for substantial severance. Their actual duties and working arrangements determine which employment standards exemptions apply.

Do Unionized Construction Workers Get Severance?

Unionized workers’ termination rights are governed by their collective agreements and applicable law. Workplace termination disputes are ordinarily handled through the union’s grievance process. Our employment law team represents non-unionized employees.

Laid Off or Fired From a Construction Job? Find Out What You’re Owed

If you’ve lost your construction job, don’t assume you’re owed nothing because of an industry exemption, seasonal layoff or contractor agreement.

The employment lawyers at Samfiru Tumarkin LLP help non-unionized construction workers in Ontario, Alberta and British Columbia recover the compensation they’re legally owed.

If you’ve received a termination offer, have your severance package reviewed before signing.

Before you sign, always check first.

Advice You Need. Compensation You Deserve.

Consult with Samfiru Tumarkin LLP. We are one of Canada's most experienced and trusted employment, labour and disability law firms. Take advantage of our years of experience and success in the courtroom and at the negotiating table.

Get help now