More topics

If Employment is Terminated - Act Part 3, Section 18

Last updated on December 27, 2019

Contents:

Summary
Text of Legislation
Policy Interpretation
Related Information

Summary

This section explains the time limits for payment of outstanding wages when employment ends. 

Text of Legislation

18. (1) An employer must pay all wages owing to an employee within 48 hours after the employer terminates the employment.

(2) An employer must pay all wages owing to an employee within 6 days after the employee terminates the employment.

Policy Interpretation

There are time limits for payment of outstanding wages when employment ends.

Subsection (1)

When the employer terminates the employment relationship, all outstanding wages must be paid to the employee within 48 hours after the date of termination.

Subsection (2)

When an employee quits, an employer must pay all wages owing to the employee within six calendar days after the last working day or the date the employee quit, whichever is later. 

Example 1:

Amira works Monday to Friday. Amira gives one weeks' notice on July 3 that she is quitting as of July 10. Amira then works out her notice period, so their last day worked is July 10. Amira is entitled to be paid within six days of July 10.

Example 2:

An employee works irregular hours. They work on July 17. On July 21 they phone the employer and quit without notice, advising the employer they won’t be in to work their scheduled shift on July 22. The employee is entitled to be paid within six days of July 21, the day they gave their notice.

“Wages” pursuant to s.1 of the Act include:

  • accrued statutory holiday pay;
  • overtime wages;
  • unpaid vacation pay;
  • any money held in a time bank;
  • compensation for length of service;
  • group termination pay; and
  • money earned and due at the time of termination and afterwards (e.g., commissions, incentive pay related to hours of work production or efficiency)

Commissions

Commissions must be paid as soon as the employee becomes entitled to them under their contract of employment. A commissioned salesperson who is no longer employed may still be entitled to commissions depending on the terms and conditions of their contract.

If there is no agreement in writing, or the parties disagree on when the commission should be paid, the director may review past practice with respect to the employee and other employees and co-workers

Employees covered by a collective agreement

Section 3 provides that parties to a collective agreement may not negotiate terms and conditions that do not meet or exceed the standards set out in section 18. Where there is a collective agreement, the enforcement of matters relating to section 18 is through the grievance procedure, not through the enforcement provisions of the Act.

Related Information

Related sections of the Act or Regulation

ESA

ESR

Other

Commission Sales