This article provides general information about Manitoba employment law. It is not legal advice. Different rules may apply to unionized employees, federally regulated employers and employees working outside Manitoba.
If you would like advice on a proposed termination, assistance assessing potential legal risks, or help preparing a termination package, please contact Peter Mueller. Obtaining advice before a termination is implemented can often prevent costly disputes and litigation later.
Who is this for?
This guide is intended for Manitoba employers, business owners, managers and human resources professionals who are considering terminating a non-unionized employee. It provides a general overview of the legal issues that commonly arise before, during and after a termination.
Every termination is different. The appropriate approach depends on the employee’s contract, length of service, compensation, the reason for the termination, and the surrounding circumstances. Before making a final decision or communicating it to an employee, you should consider obtaining legal advice tailored to your specific situation.
All Employment Relationships Must End
Everything must come to an end eventually, and employment relationships are no exception. Even where there is a legitimate business reason for ending the relationship, an employer can create unnecessary legal exposure by moving too quickly, relying on an unenforceable contract, alleging cause without sufficient evidence, or mishandling the termination process.
This article outlines the principal steps Manitoba employers should consider before terminating a non-unionized employee.
1. Identify Why the Employment Is Ending
An employer should begin by clearly identifying the reason for the termination.
Most terminations fall into one of two categories:
• termination without cause; or
• termination for just cause.
An employer generally does not need to prove misconduct to terminate a non-unionized employee. An employer may ordinarily terminate employment without cause, provided it gives the employee the notice, compensation and benefits required by the employment contract and applicable law.
Just cause is different. A termination for cause means the employer is ending the relationship without providing notice or compensation in place of notice. This is known as the “capital punishment” of employment law.
Because the consequences for the employee are significant, the threshold for establishing cause is high. Poor performance, a mistake or a single incident of relatively minor misconduct will not necessarily amount to just cause.
Before alleging just cause, an employer should consider:
• what exactly occurred;
• whether the allegations can be proven;
• the seriousness of the conduct;
• the employee’s explanation;
• the employee’s length and history of service;
• whether the employee received clear expectations and prior warnings;
• whether progressive discipline was appropriate; and
• whether the employer has treated comparable cases consistently.
Where the evidence is uncertain, a without-cause termination may be less risky than making an allegation of cause that the employer cannot ultimately prove. Though courts have confirmed that an employer who is unsuccessful at proving just cause at trial does not by itself necessarily establish that the employer acted in bad faith.
2. Review the Employment Contract
The employee’s written employment contract should be reviewed before any decision is made.
A properly drafted termination clause may limit the employee’s entitlement to the notice and benefits required by employment standards legislation, or to another clearly defined contractual amount.
However, termination clauses are frequently challenged. A clause that provides less than the statutory minimum could produce an unlawful result, or is otherwise unenforceable may fail to displace the employee’s common-law rights.
The Supreme Court of Canada has confirmed that an indefinite employment relationship is presumed to require reasonable notice unless a valid contractual provision clearly provides otherwise.
The employer should therefore determine:
• whether the employee signed a written agreement;
• when it was signed;
• whether the employee received something of value in exchange for signing it;
• whether the termination language complies with minimum standards;
• whether the contract addresses benefits, bonuses and incentive compensation; and
• whether later promotions or contractual changes may have affected the agreement.
Employers should not assume that a clause is enforceable simply because it appears in a signed contract.
3. What about the Notice Periods in The Employment Standards Code?
Manitoba’s employment standards legislation establishes minimum notice requirements based on the employee’s length of service.
As of July 2026, the current minimum notice periods are:
Length of employment – Minimum notice
Less than 30 days – No notice
At least 30 days but less than one year One week
At least one year but less than three years – Two weeks
At least three years but less than five years – Four weeks
At least five years but less than ten years – Six weeks
At least ten years – Eight weeks
An employer can generally provide working notice, wages in place of notice, or a combination of the two.
These are minimum standards—not necessarily the employee’s complete entitlement.
4. Reasonable Notice of Termination at Common Law
Unless a valid employment agreement limits the employee’s rights, the employee may be entitled to a longer period of reasonable notice at common law. As noted above, if the contract is silent about how notice must be given, or is not silent but is illegal, then the common law (i.e. the court) implies a term into the employment relationship that requires the employer to give reasonable notice of their termination. That assessment is individualized and may consider factors such as:
• length of service;
• age;
• position and responsibilities;
• the character of the employment;
• the availability of comparable employment; and
• whether the employee was induced to leave prior, secure employment before becoming employed by you.
There is no automatic rule that an employee receives one month of notice for every year of service. The appropriate period depends on the circumstances.
5. Account for Benefits, Bonuses and Other Compensation
A termination package should address more than base salary.
Depending on the employment contract and the employee’s compensation structure, the employer may need to consider:
• health and dental benefits;
• disability and life insurance;
• pension or RRSP contributions;
• commissions;
• car allowances;
• bonuses;
• incentive plans;
• accrued vacation pay; and
• other regular compensation.
At common law, damages are generally intended to place the employee in the financial position they would have occupied during the reasonable-notice period. The Supreme Court of Canada has held that this analysis can include incentive compensation unless the applicable plan or contract clearly and lawfully removes the employee’s entitlement.
Special attention should be paid to employees approaching a bonus payment, pension milestone, vesting date or other significant compensation event.
6. Check for Human Rights and Protected-Leave Issues
An employer may have a legitimate business reason for a termination and still face liability if the decision was influenced by a prohibited consideration.
The Manitoba Human Rights Code prohibits discrimination in any aspect of employment unless the distinction is based on a bona fide and reasonable occupational requirement or qualification.
Before proceeding, the employer should consider whether the employee:
• has a disability or medical restriction;
• has recently requested accommodation;
• is pregnant or on maternity or parental leave;
• is absent because of a protected leave;
• has raised allegations of harassment or discrimination;
• has made a workplace-safety complaint;
• has sought employment-standards entitlements; or
• has recently raised another legally protected concern.
The existence of one of these circumstances does not necessarily prevent a termination. For example, an employee on a protected leave may still be affected by a genuine business closure or restructuring that is unrelated to the leave. However, the employer should be able to demonstrate that the protected characteristic, request or absence had no influence on the decision.
The timing of a termination can be important. A decision made shortly after an accommodation request, complaint or protected absence will usually attract closer scrutiny.
7. Document the Decision
Before the meeting, the employer should prepare an internal record explaining:
• the reason for the termination;
• who made the decision;
• when the decision was made;
• what information was considered;
• whether alternatives were considered;
• how the termination package was calculated; and
• why the decision is unrelated to any protected characteristic or activity, where applicable.
The documentation should be accurate, professional and consistent with what will be communicated to the employee.
Employers should avoid creating exaggerated or inflammatory records designed to justify a decision after it has already been made. Internal communications may later become evidence in litigation, an employment-standards complaint or a human-rights proceeding.
8. Prepare the Termination Letter and Release
The termination letter should clearly state:
• that the employment relationship is ending;
• the effective termination date;
• whether the termination is with or without cause;
• the amount of working notice or compensation being provided;
• how benefits will be treated;
• how vacation pay and outstanding wages will be handled;
• how company property must be returned;
• whether continuing confidentiality obligations apply; and
• who the employee may contact with questions.
The letter should distinguish between amounts the employee is legally entitled to receive and any additional payment offered in exchange for a release.
An employer generally should not make statutory minimum payments conditional on the employee signing a release. If additional compensation is being offered, the employee should be given a reasonable opportunity to review the agreement and obtain independent legal advice to mitigate against the risk of allegations that the employee signed under duress or did not understand what they were signing.
The release should be tailored to the circumstances rather than copied from an unrelated termination.
9. Plan the Termination Meeting
A termination meeting should be respectful, direct and brief.
Ordinarily, the employer should:
• have two employer representatives present;
• meet privately;
• communicate the decision clearly;
• avoid debating the merits of the decision during the meeting;
• give the employee the termination letter;
• explain the next administrative steps;
• arrange for the return of property; and
• allow the employee to leave with dignity.
The employer should not suggest that the decision is still under discussion if it has already been made.
Security measures should be proportionate. Immediately escorting every dismissed employee from the workplace or treating the person as a security threat may unnecessarily escalate the situation. Where there is a genuine concern about safety, confidential information, system access or company property, the employer should make appropriate arrangements in advance.
10. Protect the Business
The employer should coordinate the termination with its payroll, human-resources and information-technology personnel.
Depending on the employee’s role, the employer may need to:
• secure company devices;
• preserve relevant electronic records;
• change passwords and access permissions;
• redirect email and telephone communications;
• recover keys, credit cards and equipment;
• remind the employee of confidentiality obligations;
• review non-solicitation or restrictive-covenant provisions;
• notify customers or employees using neutral language; and
• create a transition plan for ongoing work.
Employers should avoid announcing that an employee was terminated for misconduct unless that statement is necessary, accurate and legally supportable.
11. Complete the Payroll and Administrative Requirements
The employer must ensure that the employee receives all required wages, vacation pay and termination compensation.
The employer will also normally be required to issue a Record of Employment following an interruption of earnings.
The reason entered on the ROE should accurately reflect the circumstances. Comments should be factual and limited to what is necessary.
Employers should also consider:
• benefit-provider notification;
• pension or group-plan paperwork;
• expense reimbursement;
• outstanding commissions;
• tax treatment;
• statutory deductions; and
• records of when payments and documents were delivered.
12. Common Termination Mistakes
Some of the most common employer errors include:
1. Assuming employment standards are the employee’s only entitlement.
Statutory notice is a minimum. Common-law notice may be substantially longer.
2. Relying on an unenforceable termination clause.
A signed contract is not necessarily a valid contract.
3. Alleging cause too quickly.
Cause requires a contextual analysis and strong evidence.
4. Ignoring disability or accommodation issues.
Attendance or performance problems may be connected to a protected disability.
5. Using inconsistent explanations.
Different explanations given internally, to the employee and on the ROE may undermine the employer’s position.
6. Making payment conditional on a release.
Minimum legal entitlements should not be withheld to pressure an employee into signing.
7. Failing to address bonuses and benefits.
Salary is only one component of the potential termination entitlement.
8. Conducting an unnecessarily humiliating meeting.
The manner of dismissal can increase conflict and, in some cases, potential damages.
DISCLAIMER: This article is presented for informational purposes only. The views expressed are solely the author(s)’ and should not be attributed to any other party, including Taylor McCaffrey LLP. While care is taken to ensure accuracy, before relying upon the information in this article you should seek and be guided by legal advice based on your specific circumstances. The information in this article does not constitute legal advice or solicitation and does not create a solicitor-client relationship. Any unsolicited information sent to the author(s) cannot be considered to be solicitor-client privileged.
If you would like legal advice, kindly contact the author(s) directly or the firm's Chief Operating Officer at pknapp@tmlawyers.com, or 204.988.0356.
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Peter Mueller
Partnerpmueller@tmlawyers.com
Peter Mueller is a litigation lawyer who helps businesses, not-for-profits, and employers resolve disputes before courts, arbitration panels, and government tribunals. Licensed in Manitoba and Nunavut, Peter’s practice is designed around dispute resolution and advocacy, providing clear, strategic advice that supports practical business decisions and minimizes risk.