Can employers in Alberta cut a worker’s pay?

In Alberta, your employer can’t significantly reduce your salary or wages without your consent. If major changes are made to your job, it may be considered a constructive dismissal. You would be entitled to a full severance package as if you were fired without cause.

A company may have the ability cut your compensation by less than 15-20 per cent without permission. However, you should always speak to an experienced Alberta employment lawyer at Samfiru Tumarkin LLP before accepting any changes to your employment or before quitting your job.

LEARN MORE
• Do I get severance if I quit?
• Should I negotiate my own severance package in Alberta?

WATCH: Employment lawyer Lior Samfiru breaks down everything you need to know about changes to your job on an episode of the Employment Law Show.

What do I do if my employer directs me to take a pay cut, but I don’t want to?

Unless your employment contract gives your employer the right to modify your salary or commission, your boss can’t legally force you to accept a pay cut.

If you are directed to agree to a reduction, make sure you:

• Ask your employer about the benefits you will receive for the change
• Get the terms of the pay cut in writing
• Request an adequate amount of time to consider the modification before accepting

Throughout this process, you can simply refuse the change to your wages.

If you reject the pay cut, but your company proceeds with the reduction, contact Samfiru Tumarkin LLP.

We can help you file a constructive dismissal claim and ensure that you receive full severance pay.

SEE ALSO
• Severance pay in a recession
• Employment Law Show: Situations that trigger legal disputes
• Employment Law Show: Facts about the termination process

My employer is pressuring me to sign a new employment contract, what should I do?

If the employment contract you initially signed doesn’t give your employer permission to adjust your pay, you might be asked to accept a new agreement that does give the company the ability to make changes.

In the event that your boss provides you with a new employment contract, hold off on signing anything before seeking legal counsel. You don’t have to accept it immediately or a few days after receiving it.

These agreements often take away key protections that would otherwise be available to non-unionized employees in Alberta.

An experienced employment lawyer at Samfiru Tumarkin LLP can review the contract and ensure that your workplace rights are properly protected.

LEARN MORE
• Starting a new job? Here’s how an employment contract could limit your rights
• ’60 days or more’: Is it an enforceable termination clause?
• Employment Law Show: 5 things to know about employment contracts

Validating a new agreement

In order to validate a new employment contract, employers must provide non-unionized workers in Canada with an additional “benefit”.

Potential benefits could include:

• A promotion
• Extra vacation days
• More flexibility working remotely

If your company didn’t include an additional benefit in the new agreement, or you aren’t sure that one has been provided, don’t sign anything before contacting Samfiru Tumarkin LLP.

SEE ALSO
• Pay raises: Rights for employees in Alberta
• Vacation Pay in Alberta: Your Rights

My employer recently sold the business, can the new owner make changes to my pay?

If you receive an employment offer from the new owner, and have a good reason for why you don’t want to accept it (i.e. different pay or hours), you can still get full severance pay from the company that sold the business.

• Example: James has worked for a company in Calgary for 20 years. The business is acquired by a competitor in Edmonton. James receives a job offer from the new owner, but it includes a demotion and a roughly 25 per cent cut in pay. These changes to his employment made it reasonable for him to reject the new offer and he was still able to receive his severance entitlements.

Even without a good reason for turning down a job offer from the new owner, you can still get a severance package.

However, it’s very likely that you will only receive the minimum amount of compensation required under provincial or federal legislation.

LEARN MORE
• Sale of business in Alberta: Rights to severance
• If Suncor sells Petro-Canada, what rights do employees have?
• Employee rights when a company closes

Can my employer punish me for refusing a cut in pay?

No, your employer can’t punish you or threaten to punish you for asserting your workplace rights.

Non-unionized employees in Alberta don’t have to accept major changes to their job. Large modifications such as a cut in pay, demotion, reduction in hours, or negative change to commission are illegal.

If your company disciplines you or threatens to discipline you for asserting your rights, that is a reprisal and you should contact an experienced employment lawyer at Samfiru Tumarkin LLP immediately.

SEE ALSO
• Employment Law Show: Reprisals at work in Canada
• Employment Law Show: How to handle a bad boss
• Employment Law Show: What your employer legally can’t do

Can my employer fire me for refusing a cut in pay?

In Alberta, employers can fire non-unionized workers for refusing a pay cut.

This is called a termination without cause. You can be let go for any reason, as long as:

• You are provided full severance pay
• The reasons for your dismissal aren’t discriminatory

What your employer can’t do in this situation is fire you for just cause, which would mean no severance package or access to Employment Insurance (EI) benefits.

This type of termination is reserved for the worst kinds of workplace offences, such as theft or insubordination.

LEARN MORE
• How to calculate severance pay
• Severance pay in a recession
• Wrongful dismissal in Alberta

Lost your job? Speak with an employment lawyer

If you are fired or let go after refusing a pay cut, or for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Alberta, B.C., and Ontario have helped tens of thousands of non-unionized individuals resolve their workplace issues.

We can review your situation, enforce your rights, and ensure that you receive the compensation you are owed.