Severance Pay Laws in Nunavut
Nunavut's Labour Standards Act (LSA) section 15 sets a graduated termination notice schedule: two weeks of notice or pay in lieu after three months of service, scaling up by one week per additional year of service to a maximum of eight weeks after eight or more years. There is no separate LSA severance pay entitlement in Nunavut. Common law reasonable notice applies on top.
Common law reasonable notice in Nunavut is governed by the Bardal factors: age, length of service, character of employment, and the availability of comparable employment. As in Yukon and NWT, the narrow territorial labour market — Nunavut has fewer than 40,000 residents — means the availability factor can push common law notice awards substantially above the national norm, especially for senior specialty employees whose skills are not transferable within the territory.
Nunavut has a group-termination notice framework under LSA section 17. When twenty-five or more employees are terminated within four weeks, the employer must give additional written notice scaling with the size of the affected group. Notice must be filed with the Director.
On non-competes, Nunavut courts apply a common-law reasonableness test. The clause must protect a legitimate business interest, be reasonable in duration and geographic scope, and not impose undue hardship on the employee.
Nunavut's economy is heavily concentrated in government (federal and territorial), mining (gold, lead, zinc), construction, tourism, and traditional economy activities (fishing, sealing, art and craft). The Nunavut Human Rights Act provides discrimination protections. Final wages are due no later than the next regular payday following termination under LSA section 18.
How Much Severance Are Nunavut Workers Owed?
Nunavut employees in government, mining, and construction typically receive offers above the LSA floor, with the narrow territorial labour market producing notably higher common law notice awards for senior specialty employees than would apply in a southern province. Tourism and front-line workers come in closer to the LSA floor.
Industry Benchmarks for Nunavut
In Nunavut, government and mining senior roles pay above the modeled midpoint; tourism and front-line workers come in closer to LSA minimums.
Major industries
- · Government
- · Mining
- · Construction
- · Tourism
- · Traditional economy
Major cities
- · Iqaluit
- · Rankin Inlet
- · Arviat
- · Baker Lake
- · Cambridge Bay
Frequently Asked Questions — Nunavut Severance
How is termination pay calculated under the Nunavut Labour Standards Act?+
LSA section 15 sets a graduated schedule scaling up to a maximum of eight weeks of notice or pay in lieu after eight or more years of service. There is no separate severance pay entitlement; common law notice runs on top.
How is common law notice calculated in Nunavut?+
Courts apply the Bardal factors. The availability of comparable work is especially important given the narrow territorial labour market — common law notice awards for senior specialty employees in Nunavut can substantially exceed southern provincial norms.
When is my final paycheck due in Nunavut?+
Under LSA section 18, final wages are due no later than the next regular payday following termination. Accrued vacation is wages payable on termination.
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