In New Brunswick, all wages normally due on your next regular payday must be paid on that date. Any other outstanding compensation-including severance pay, commissions, and accumulated vacation pay-must be paid on the following payday, but no later than 21 calendar days after your last day of employment.
Losing your job is an incredibly stressful experience, and wondering when you will finally receive your last paycheque only adds to the anxiety. In New Brunswick, the provincial Employment Standards Act sets strict legal deadlines for employers to pay out all outstanding wages, vacation pay, and statutory severance.
Whether you were laid off in Moncton, terminated in Fredericton, or resigned in Saint John, your employer cannot legally hold your earned money hostage. Understanding these timelines ensures you can smoothly transition to your next career opportunity or promptly apply for Employment Insurance without facing unnecessary financial hardship. 📍
Step-by-Step Process in New Brunswick
Securing your final compensation involves understanding your basic rights and ensuring your employer follows the correct administrative steps. If a business fails to meet these provincial standards, you have formal avenues for recourse.
Step 1: Confirming Your Notice Period or Severance
In New Brunswick, if you have worked continuously for more than six months, your employer must provide written working notice or pay in lieu of notice (statutory severance). If they choose to provide pay in lieu, you must stop working immediately, but they owe you a lump sum for the required notice period.
Your employer cannot force you to use your banked vacation days as a substitute for your formal notice period. The notice period must be compensated as a distinct and separate financial entitlement.
Step 2: Calculating Vacation Pay and Final Wages
Your final paycheque must clearly include all hours worked up to the very last minute of your employment. Additionally, employers must pay out any unused vacation time you have accumulated over the year. 💰
In New Brunswick, vacation pay is legally calculated as 4% of your gross earnings if you have worked for the company for less than eight years. If you have been a loyal employee for eight years or more, you are legally entitled to 6% vacation pay on your final stub.
Step 3: Securing Your Record of Employment (ROE)
Your employer must issue your Record of Employment (ROE) directly to Service Canada within five calendar days after the end of the pay period in which your interruption of earnings occurred. This critical document summarizes your insurable hours and earnings.
You absolutely need this document to successfully apply for Employment Insurance (EI) benefits. However, Service Canada explicitly advises that you should not wait for the ROE to arrive before starting your EI application online to avoid losing out on benefit weeks.
Step 4: Filing a Formal Employment Standards Complaint
If the strict 21-day legal deadline passes and your employer still refuses to issue your final cheque, you can file a formal, free complaint with the New Brunswick Employment Standards Branch. ⚔
A provincial investigating officer will review your case, audit the employer’s payroll records, and has the legal authority to order the business to immediately release your unpaid wages. If the employer refuses, the province can enforce the order through the courts.
How Much Severance Are You Entitled To in New Brunswick?
The amount of severance you receive upon termination depends heavily on whether you rely on the bare provincial minimums or pursue your full common law rights:
- Statutory Minimums: Under the Employment Standards Act, employees with six months to five years of continuous service are legally owed 2 weeks of notice or pay. Employees with five or more years of service are entitled to 4 weeks.
- Common Law Severance: If you did not sign a highly restrictive employment contract, a judge at the Court of King’s Bench may award you significantly more. Based on factors like your age, position, and tenure, common law severance can legally reach up to 24 months of full compensation.
- Tax Deductions: The CRA requires employers to withhold income tax from severance payments, which are generally classified as a retiring allowance.
How Long Does the Process Take?
By provincial law, your final regular wages for hours worked must be paid exactly on your next scheduled, regular payday. All other outstanding financial amounts-such as your pay in lieu of notice, sales commissions, and accumulated vacation pay-must be paid on the following payday, but absolutely no later than 21 calendar days after your last day of employment. ⏱
If your employer attempts to delay this, or if you choose to hire an employment law firm to negotiate a much larger common law severance package, the formal negotiation process generally takes 3 to 6 weeks to reach a signed settlement.
Frequently Asked Questions (FAQ)
Can an employer withhold my final pay for an unreturned laptop?
Generally, no. Under New Brunswick law, an employer cannot make unauthorized deductions from your final paycheque simply because you have not returned company property like a uniform, keys, or a laptop. They must pay your wages and then deal with the property issue separately, unless you gave explicit written consent for a specific deduction.
Do I get paid out for unused sick days?
No. Unless your specific employment contract or a union collective agreement explicitly states that unused sick days are paid out upon termination, the Employment Standards Act does not require employers to cash out sick leave balances.
What happens to my pay if I am fired for cause?
Even if you are fired for severe misconduct, your employer is still legally obligated to pay you for every single hour you actually worked, plus your accumulated 4% or 6% vacation pay. However, you will not receive any severance pay or pay in lieu of notice.
Can I get Employment Insurance if I get a severance package?
Yes, but your EI payments will be delayed. Service Canada allocates your severance pay over a specific period. For example, if you receive 10 weeks of severance pay, you generally cannot start receiving your regular EI benefits until those 10 weeks have fully passed.
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