Shell Canada Greenlights Major Alberta Carbon Capture Projects: What Employees Need to Know

Shell Canada has finalized its commitment to two massive carbon capture and storage (CCS) projects in Alberta, signaling a major move for the energy giant following recent industry setbacks.

The Calgary-based company confirmed investment for the Polaris project at its Scotford complex near Fort Saskatchewan and the Atlas Carbon Storage Hub, a partnership with ATCO EnPower.

• Note for Workers: As Shell ramps up these multi-year projects, hiring — and potential restructuring — often follows. If you are joining the team or shifting roles within the company, understanding your employment contract is your first line of defense.

Project Breakdown: Polaris and Atlas

These initiatives are central to Shell’s decarbonization strategy and Canada’s broader climate goals.

• Polaris Project: Designed to capture 650,000 tonnes of CO2 annually from the Scotford refinery and chemicals plant.
• Atlas Carbon Storage Hub: A 50/50 partnership with ATCO EnPower to store the captured CO2 deep underground.
• Timeline: Construction is moving forward, with operations expected to begin by the end of 2028.

The Legal Landscape: Your Rights at Shell Canada

Whether you are being recruited for a new role at the Scotford facility or are an existing employee navigating these changes, the legal fine print matters.

1. The “Fine Print” in New Employment Contracts

Before you sign on for a new project in Alberta, remember that employment contracts often limit your rights. Employers may include clauses that:

• Cap your severance pay at the bare minimum.
• Allow the company to change your job duties or location without your consent.
• Include restrictive non-compete clauses.

2. Navigating Probationary Periods

In Alberta, a “probation clause” must be clearly written in your contract to be valid.

• The 3-Month Mark: If you are let go after three months, you are generally entitled to severance or notice, regardless of what the company says.
• The “Trial” Myth: Many employees believe they have no rights during probation. This is often false.

3. Severance and the “Service Time” Trap

If you leave a long-term position at another company to join Shell’s new CCS projects, you are essentially starting your “severance clock” from zero.

• The Risk: If the project is delayed or restructured in two years and you are let go, your severance may only be based on those two years of service—unless your contract was negotiated to recognize your previous seniority.
• The “Inducement” Factor: If Shell (or any company) actively recruited you away from a secure job, you may be entitled to enhanced severance if things don’t work out.

4. Constructive Dismissal and Project Changes

Large-scale projects often involve shifting timelines and role changes. If Shell significantly alters your pay, hours, or work location (e.g., moving you from Calgary to Fort Saskatchewan), you may not have to accept it. This is known as constructive dismissal, and it could entitle you to a full severance package.

Before You Sign, Get a Second Opinion

The excitement of a multi-billion dollar project like Polaris shouldn’t overshadow your long-term security. Before signing a new agreement or accepting a severance offer:

1. Don’t Rush: Your employer can’t legally force you to sign a contract on the spot.
2. Calculate Your Worth: Use our Severance Pay Calculator to see what you might be owed.
3. Call the Experts: The team at Samfiru Tumarkin LLP has represented thousands of Albertans. Our Calgary Employment Lawyers ensure your contract protects you today — and five years from now.