Employment Law

Canadian oil and gas jobs reach 10-year high amid industry optimism

A photo of an oil rig in front of a sunset. (Photo: Zbynek Burival / Unsplash)

Canada’s oil and gas sector is experiencing a resurgence, with employment levels hitting their highest point since February 2015. According to the Calgary Herald, a recent report reveals that over 212,000 people were working in the industry as of October, reflecting an increase of 14,500 jobs over the past year.

Key trends driving growth

Analysts point to several factors fueling this recovery:

  • Record-breaking oil and gas production in Alberta.
  • Major projects like the Trans Mountain Expansion (TMX) and LNG facilities.
  • Industry focus on paying down debt.

According to Jeremy McCrea, an analyst at BMO Capital Markets, “There is a lot of optimism . . . and as a result, a lot of these oil and gas companies are hiring people.”

Sector breakdown: Where are the jobs?

The growth is uneven across the industry:

  • Exploration and Production: Employment in roles like geologists and engineers rose to 112,000, marking a 10-year high.
  • Oil and Gas Services: Jobs increased by 16.6% (10,700 positions), driven by drilling and well completions.
  • Pipeline and Refining: Employment declined by 28% and 14%, respectively, underscoring ongoing challenges in certain areas.

Globally, the oil and gas sector added over 600,000 jobs in 2023, while Canada’s growth aligns with a rising demand for skilled workers.

Steady recovery after economic challenges

The Canadian oil and gas sector faced significant challenges over the past decade:

  • Oil price collapse (2014): Thousands of layoffs followed.
  • Pandemic-related consolidation: Reduced the number of public oil and gas companies in Canada by 62%.
  • Capital spending declines: Dropped by nearly 40% during the pandemic but has since rebounded to $40 billion in 2023.

This cautious recovery has stabilized the sector, with companies focusing on efficiency and workforce retention. “As an industry, we do more with less,” said Dale Dusterhoft, CEO of Prostar Energy.

Long-term outlook: Skilled workers in demand

Looking ahead, the demand for skilled workers is set to rise:

  • Enserva Forecast: Predicts a 26% increase in oil and gas service sector jobs this year compared to 2023, with 40,000 new jobs expected by 2030.
  • University of Calgary: Relaunching its oil and gas engineering program to meet sector needs.

Industry leaders like Peyto Exploration CEO Jean-Paul Lachance see opportunities for young workers in the sector. “Energy demand will continue to grow, creating long-term employment prospects,” he said.

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Carefully review your new employment contract

If you’re starting a new job in the oil and gas industry, you’ll likely be asked to sign an employment contract. It’s crucial to carefully review this agreement, as it can impact your workplace rights.

Many employment contracts include clauses that limit key protections for non-unionized workers, such as:

  • Reducing your severance package to a fraction of what you’re entitled to under the law.
  • Allowing your employer to make significant changes to your role without your consent.

If you’re unsure about any terms in your contract, speak with an experienced employment lawyer at Samfiru Tumarkin LLP to ensure your rights are protected.


WATCH: Employment lawyer Lior Samfiru explains everything you need to know about employment contracts on an episode of the Employment Law Show.


Your boss can’t force you to sign immediately

Once you receive an employment contract, remember: your employer can’t legally require you to sign it immediately. You have the right to review the agreement thoroughly. If there’s any pressure to accept the terms quickly, consult a lawyer at Samfiru Tumarkin LLP before proceeding.

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Probationary periods: What you need to know

Employment contracts often include a “probation clause,” which requires new hires to complete a probationary period. If the clause isn’t clearly outlined in the agreement, it may not be enforceable.

If you’re terminated during probation, severance pay may still be owed depending on the terms of your contract.

Fired during probation? Here’s what to do

If you’re let go during probation, your severance entitlements depend on what your employment contract states. For help understanding your rights, contact our team of employment lawyers.

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Severance pay: What to consider before changing jobs

Before switching jobs, it’s vital to understand how severance pay is calculated. Severance is designed to provide employees with financial support while they look for new work after being fired without cause or let go. For non-unionized employees, severance can reach up to 24 months’ pay and depends on factors such as:

  • Age
  • Length of service
  • Job position
  • Ability to find new work

What happens if you quit?

Generally, non-unionized employees are not entitled to severance pay if they quit voluntarily. However, if you’re forced to resign due to significant changes to your role, it may be considered a constructive dismissal, making you eligible for severance.

Changing jobs after being recruited? Consider inducement

If another company actively recruits you to leave your current role, this may qualify as inducement. If you’re terminated shortly after joining the new employer, this can enhance your severance package.

Example: An oil company persuades you to leave your current job. If they terminate your employment shortly after hiring you, they may owe you additional severance due to inducement.

 

If this applies to your situation, don’t sign a severance offer without consulting our team. We’ll ensure the inducement is factored into your compensation.

ADDITIONAL RESOURCES
Recruited by another company in Alberta: Employee rights
Inducement in B.C.: What employees need to know

Speak to an employment lawyer before changing jobs

Before signing a new employment contract, consult with the experienced lawyers at Samfiru Tumarkin LLP. We’ll help you understand the terms and protect your workplace rights.

Our team has successfully represented tens of thousands of non-unionized employees in Ontario, Alberta, and B.C.. Contact us today for expert guidance – and to get the compensation you deserve.

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Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.

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