On this page we provide a general overview of employment standards legislation in Alberta. Should you have more specific questions about employment standards or employment law in general, we would be pleased to discuss with you.
Introduction
The Employment Standards Code (the “Code“) is provincial Legislation that sets out minimum standards that must be provided to employees working in Alberta. The Code is a comprehensive set of laws regulating the employment relationship.
This page provides an overview of the following sections of the Code:
- Records an employer must keep
- Deduction of earnings
- Hours of work
- Training
- Overtime and overtime pay
- Holidays and holiday pay
- Vacation and vacation pay
- Job-protected leaves (unpaid)
- Termination of employment
- Restrictions on the employment of youth under the age of 18
There are a few important initial points.
First, minimum standards under the Code cannot be avoided, even if there is an agreement to do so between the employer and employee.
Second, employers and employees can agree to benefits that are greater than what is provided under the Code.
Third, the Code only applies to the employer-employee relationship. This means that any self-employed workers or contractors doing work for the company will not be covered under the Code.
Finally, it is important to note from the outset that the current minimum wage in Alberta is $15 per hour (except for students under 18, as discussed at the end of this article).
Records an Employer Must Keep
An employer must keep the following records related to each employee:
- Name, address and date of birth
- Wage rate and overtime rate
- Regular and overtime hours of work
- Earnings paid showing each component of the earnings separately for each pay period
- Deductions from earnings and the reason for each deduction
- Time off instead of overtime pay provided and taken
- The date that the present period of employment started
- The date on which a general holiday is taken
- Each annual vacation, showing the date it started and finished and the period of employment in which the annual vacation was earned
- The wage and overtime rates when employment starts, the date of any change to those rates, and particulars of every change to them
- Copies of documentation notices relating to job-protected leave benefits
- Copies of termination notices and of written requests to employees to return to work after temporary lay-off
- Copies of overtime agreements
- Copies of parental consent for youth employment
Deduction of Earnings
An employer must make certain deductions from an employee’s earnings:
- Federal and provincial income tax
- Employment Insurance premiums
- Canada Pension Plan contributions
Other items such as medical or dental premiums can be deducted from an employee’s pay cheque, with the employee’s written authorization. An employer cannot deduct pay for poor work or cash shortages.
Hours of work
Hours of work cannot exceed 12 consecutive hours, except in rare emergency situations. The Code also specifies numerous rules related to rest periods.
Daily Rest Periods
Within each shift that is five consecutive hours of work, an employee is entitled to at least a 30 minute break, which can be paid or unpaid according to the employer’s discretion.
If an employee works less than five hours they are not entitled to a break.
Weekly Days of Rest
An employer must give an employee at least one day of rest each week. However, an employee can work up to 24 days without taking the days off to which they are entitled. At the conclusion of the 24 days, the employees must be provided with at least 4 consecutive days of rest.
Standby time
If an employer is unclear if an employee will be needed, they can request that an employee be on standby. Unless the employee is waiting at the employer’s workplace, then the employee does not need to be paid for this time.
Shift work
An employer must provide an employee notice of when their work starts and ends, they can do this by posting schedules in a location commonly used for such notices. An employee must be notified about any changes to the schedule 24 hours before they are scheduled to start work, otherwise an employer will be responsible for paying the employee’s earnings from that shift.
Training
An employer must pay the employee the wage agreed for the training period. This can be different than the employee’s regular wage, but cannot be lower than the minimum wage. Training does not include the employee obtaining qualifications necessary for hiring.
Overtime Hours and Overtime Pay
In general, overtime is all hours worked over 8 hours per day or 44 hours per week.
To calculate the amount of overtime hours an employee is entitled to receive overtime pay for, a three step process should occur:
- Calculate the daily overtime hours. Any hours more than eight hours worked in each day will be daily overtime hours.
- Calculate the weekly overtime hours. Any hours more than 44 hours in a week will be weekly overtime hours.
- Compare the daily and weekly totals and pay the greater number of overtime hours. Whichever method of counting yields the greater overtime hours for employees, is the amount of overtime hours an employer is required to pay.
The overtime rate of pay is at least 1.5 times the employee’s regular rate of pay.
Certain types of employees are exempt from overtime pay, including managers, supervisors, information systems professionals and certain other professionals prescribed by the Regulations to the Code.
Holidays
| New Year’s Day | January 1 |
| Alberta Family Day | 3rd Monday in February |
| Good Friday | Varies with religious calendar |
| Victoria Day | Monday immediately preceding May 25 |
| Canada Day | July 1 |
| Labour Day | 1st Monday in September |
| Thanksgiving Day | 2nd Monday in October |
| Remembrance Day | November 11 |
| Christmas Day | December 25 |
There are nine holidays under the Code recognized as statutory holidays:
An employee is entitled to statutory holiday pay if they have worked for an employer for 30 workdays.
If an employee is paid hourly and an employee works on a statutory holiday, then they are entitled to 1.5 times their regular wage rate for hours worked.
If an employee is paid on a salary basis then they must receive the statutory holiday off work and be paid their full salary for the day (if they are required to work, then they must receive a different day off in lieu).
Vacation
After one year of employment most employees are entitled to at least 2 weeks of vacation with pay.
Employers are not required to provide vacation to employees who have been employed less than a year, but often do so. After an employee is employed for five years they are entitled to 3 weeks of vacation.
Vacation pay builds up over a 12 month period. Typically, this means that on each pay cheque the employer adds vacation pay.
For employees employed between 1 and 5 years the vacation pay is 4% of the wages in the previous year.
For employees employed more than 5 years, the vacation pay is 6% of the wages in the previous year.
If an employee is terminated, an employer must pay out the vacation pay to which the employee is entitled.
Job Protected Leaves
An employee is eligible for job-protected leaves after being employed for 90 days. An employer cannot terminate or lay off an employee while they are on job-protected leave.
There are many different types of job-protected leave, but there are a few especially important ones which should be kept in mind.
Maternity and Parental Leave
A pregnant employee is entitled to maternity leave for the birth of a child. Parental leave can be taken by birth mothers, fathers or adoptive parents.
Birth mothers can take up to 16 weeks of unpaid maternity leave. Leave can start any time within the 13 weeks leading up to the estimated due date and no later than the date of birth.
Birth and adoptive parents can also take up to 62 weeks of unpaid parental leave. The birth mother can do so immediately following maternity leave. The other parent, or adoptive parents can also take parental leave.
Compassionate Care Leaves
An employee is entitled to compassionate care leave to give care or support a seriously ill family member who is at risk of death within 26 weeks. Employees can take up to 27 weeks of unpaid, job-protected leave.
Termination of Employment
When an Employee Terminates Employment
If an employee wishes to terminate employment then they must give an employer notice, unless employed for less than 90 days in which case no notice is required.
If the employee is employed more than 90 days but less than 2 years they must give 1 week notice.
If the employee is employed for 2 years or more they must give 2 weeks’ notice.
When an Employer Terminates Employment Without Cause
If an employer terminates an employee’s employment without cause they must give proper notice, unless an employee is employed less than 90 days in which case no notice is required.
| Minimum Notice Required by the Code | Length of employment |
| 1 week | More than 90 days, but less than 2 years |
| 2 weeks | 2 years or more, but less than 4 years |
| 4 weeks | 4 years or more, but less than 6 years |
| 5 weeks | 6 years or more, but less than 8 years |
| 6 weeks | 8 years or more, but less than 10 years |
| 8 weeks | 10 years or more |
A termination notice must be in writing and addressed to the employee and state the correct notice period and termination date.
Under the Code, the employer must provide the above minimum termination pay for the appropriate notice period or a combination or termination notice and termination pay.
In addition to the minimum termination pay required under the Code, terminated employees are usually entitled to additional severance pay from their former employers under the Common Law.
If your employment has been terminated without cause, you should seek legal counsel immediately.
When an Employer Terminates Employment for Alleged Just Cause
An employer may terminate an employee for just cause. However, an employee can only be terminated with just cause where their conduct is serious enough to justify the employer ending the employment relationship.
The legal bar for just cause termination is a high one and can include situations such as the employee misrepresenting their qualifications, breaching their duty to the employer and theft.
If you have been terminated for just cause, you should seek legal counsel immediately.
Temporary Layoffs
A temporary layoff occurs when an employer wishes to maintain an employment relationship but temporarily does not need the employee’s service. The maximum length of a temporary layoff is 60 days within a 120 day period. A notice of temporary layoff must be in writing and state the date that the layoff will begin.
Restrictions on employment of youth under 18
A lower minimum wage of $13 applies for students under 18. When school is in session, the $13 minimum wage applies for the first 28 hours worked and $15 per hour thereafter. When school is not in session, the $13 minimum wage applies for all hours worked.
There are restrictions on the type of work in which youth under 15 years of age may engage. Employees who are 15 years of age or younger cannot work during regular school hours.
