Defining Wrongful Dismissal: The Alberta Schism

Abstract

Is pay in lieu of common law notice in the nature of damages, for breach of contract? Or is it a mode of performance of the employer's contractual obligations? While most Canadian jurisprudence suggests that it is the former, the Alberta Court of Appeal has concluded otherwise. This paper explores the divergence in the case law, and its theoretical and practical implications, including its impact on mitigation, calculation of damages, and limitations periods.

Keywords: employment law, wrongful dismissal, pay in lieu of notice, damages, mitigation, Canada, Alberta