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Employment Contracts in Alberta

An employment contract, or employment agreement, is a written document that sets down the major terms of an employment relationship. These include wages, work hours, location, job duties, company policies, etc.

Well-drafted employment contracts help protect your business as they:

Reduce risk of legal claims by outlining the terms of employment
Set clear expectations by outlining the rights & obligations of your staff
Protect your business by serving as a reference point in case of a disagreement
Safeguard your client list and any confidential information

To be valid, your employment contract must comply with the minimum entitlements (work hours, wages, leaves of absence, etc.) laid down in the Alberta Employment Standards Code (ESC). You may offer more benefits to staff, but you can’t provide less than the minimum entitlements outlined in the Alberta ESC. Your job contracts must also be in compliance with the Alberta Occupational Health and Safety Act, and the Alberta Human Rights Act.

Writing contracts can be tricky, and any loopholes or errors may expose you to a long list of claims from employees.

What are the different types of employment contracts in Canada?

Employment contracts in Canada are of 3 types:

Indefinite-term contracts

These are signed with permanent employees in a company. They set down the terms and conditions of employment, but don’t set an end-date for the employment relationship.

Fixed-term contracts

Fixed-term contracts exist for a specified period. No notice or pay is required when the contract ends.

But if the contract is terminated without cause before the set termination date, you must provide the remaining value of the contract to the employee.

Independent contractor agreements

Such agreements are entered into with self-employed individuals for specific projects. As independent contractors are not employees, the Alberta ESC does not apply to them.

What are some major terms to include in an employment contract?

Some basic terms of employment to address include:

Hours of work
Job responsibilities
Salary, bonus, benefits
Conditions of offer (reference check, background check, and so on)
Privacy and confidentiality clauses
Disciplinary procedures
Layoff clause (giving the employer the contractual right to alter certain terms of employment when needed)
Termination clause

Looking for more information on employment contracts? Call our experts today!

If you have any questions on employment contracts or need guidance on tailoring contracts for your business, our experts are here to help you.

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