Can an employer withhold pay in Alberta?

If you’re not getting paid properly in Alberta, you’re not alone. Whether your employer is withholding your pay, making unauthorized deductions, or delaying your paycheque, it’s important to know that most of these actions are illegal under the province’s employment laws.

In Alberta, employers must follow strict rules about when and how they pay employees. The province’s Employment Standards Code (ESC) outlines your rights when it comes to wages, deductions, and final pay.

This guide will explain:

• When a company is allowed to withhold pay
• What counts as an illegal deduction from wages
• What to do if your employer doesn’t pay you
• How long your employer can hold your pay
• Your legal options to recover unpaid wages

When Can an Employer Deduct Wages in Alberta?

In Alberta, your employer can’t take money off your pay whenever they feel like it. The law is clear: deductions from your wages are only allowed in specific situations.

✅ Legal Deductions from Wages

Your employer can legally deduct money from your pay if:

• It’s required by law (e.g. CPP, EI, income tax)
• You’ve provided written consent for a specific deduction (e.g. company uniform)
• It’s a court order or legal garnishment

❌ Illegal Deductions from Wages

Your employer can’t deduct pay for:

• Cash shortages (e.g. missing till money)
• Loss or damage to property or equipment
• Mistakes or accidents on the job
• Customer walkouts or dine-and-dash situations
• Penalties related to job performance

Even if you made a mistake at work, they can’t legally deduct the cost from your pay unless you agreed in writing after the issue happened.

What if My Employer is Withholding My Pay?

If your employer is holding back your pay, you’re likely dealing with a serious breach of Alberta’s employment laws.

❌ Can an employer withhold pay in Alberta?

In most cases, no. Your employer can’t refuse to pay you for work you’ve already completed – even if:

• You were terminated for just cause
• There’s a dispute about your hours, tips, or commissions
• You quit without giving notice
• Your employer is facing financial issues or cash flow problems

⚖️ Alberta law requires your employer to:

• Pay you on your regular payday
• Provide your final wages (including any earned vacation pay) within 10 days of your last day of work, or on the next scheduled payday – whichever is later

🚩 Common excuses employers use (that don’t hold up under the law):

• “We’re reviewing your hours”
• “We’ll pay you once the client pays us”
• “You quit without notice, so we’re holding your last cheque”
• “You caused damage, so we’re deducting it from your pay”
• “We’re short-staffed and can’t process payroll yet”

None of these are valid legal reasons to delay or withhold your pay.

If this is happening to you, it’s time to assert your rights – because the longer you wait, the harder it may be to recover what you’re owed.

How Long Can an Employer Hold Your Pay in Alberta?

Under Alberta’s Employment Standards Code (ESC), employers must pay you on time – both during your employment and after it ends.

⏰ During Employment

• Employers must establish a regular pay schedule (e.g. weekly, biweekly, semi-monthly)
• They can’t delay payment past your scheduled payday without a lawful reason

🧾 After Termination

If you’re fired or quit, your employer must provide your final pay within one of the following timeframes, at their discretion:

• Within 10 consecutive days after the end of the pay period in which your employment ended
• Within 31 consecutive days after your last day of work

Your final pay must include any unpaid regular wages, overtime pay, vacation pay, and termination pay.

What to Do if You’re Not Getting Paid by Your Employer

If you’re not getting paid – or your pay is being delayed or reduced without explanation – don’t ignore it. You have legal options in Alberta to recover what you’re owed.

✅ Here’s what to do

1. Document Everything. Keep copies of pay stubs, timesheets, emails, and work schedules. Write down dates and details of missed or partial payments.
2. Ask Your Employer for Clarification. Politely ask why your pay is missing or reduced. Request a clear timeline for when it will be resolved.
3. Contact an Employment Lawyer. A lawyer can review your situation, explain your rights, and often recover unpaid wages quickly through a demand letter or legal claim – without going anywhere near court.
4. File a Complaint with Alberta Employment Standards (Optional). You can file a complaint through Alberta Employment Standards, a division of the provincial government. However, once you do this, you may limit your ability to pursue further compensation through legal action – so it’s best to speak with an employment lawyer first to understand your options.

What is Payroll Withholding?

The term “payroll withholding” can be confusing – especially if you’re not receiving your full pay. But not all withholdings are illegal.

✅ What Payroll Withholding Actually Means

Payroll withholding refers to the mandatory deductions your employer must take from your wages, such as:

• Income Tax
• Canada Pension Plan (CPP) contributions
• Employment Insurance (EI) premiums

These deductions are legal and required by federal and provincial law. You’ll typically see them listed on your pay stub, and they’re directly sent to the government.

❌ Payroll Withholding Isn’t the Same as Wage Deductions

Some employers try to disguise unauthorized deductions as part of “payroll withholding.” That’s not allowed.

Your employer can’t deduct money from your pay for things like:

• Mistakes or errors on the job
• Lost or damaged equipment
• Customer walkouts
• Training or onboarding costs

Speak to an Employment Lawyer if Your Pay is Being Withheld

If your employer is withholding your pay, making unauthorized deductions, or refusing to pay you on time, don’t wait to take action.

At Samfiru Tumarkin LLP, we’ve helped more than 50,000 non-unionized employees across Alberta, B.C., and Ontario get what they’re legally owed – including unpaid wages, severance packages, and compensation for wrongful dismissal.

Lost your job and still waiting to be paid?

You may be entitled to both:

• Withheld wages (your employer can’t withhold pay after termination)
• Full severance pay – as much as 24 months’ pay, depending on your age, position, and years of service.

⭐ Over 2,000 Five-Star Google Reviews

Our team of employment lawyers are trusted across Alberta for clear advice, fast results, and no upfront fees for most employment matters (eligibility may vary).

You can use our Pocket Employment Lawyer to get quick answers about your rights, or try the Alberta Severance Pay Calculator to estimate what you’re owed.

Take the first step today

Call 1-855-821-5900 to speak with an Alberta employment lawyer, or fill out our confidential online form.