Summary: Fixed-Term Contracts in Alberta
A fixed-term employment contract in Alberta is an agreement that has a specific, pre-determined end date.
Unlike “indefinite” employment, which continues until one party ends it, a fixed-term contract automatically expires on the date listed. However, terminating these contracts early can trigger significant legal and financial consequences.
The Risks of a Set End Date.
Fixed-term contracts are common in project-based industries like construction, IT, and seasonal work. While they offer clarity, they also carry a hidden risk: if you are let go before the end date, you may be entitled to far more than standard severance. Our Alberta team ensures that your fixed term employment contract is legally sound and that you are paid every dollar you are owed if it ends prematurely.
On This Page:
Fixed-Term vs. Indefinite
Early Termination
Working Past End Date
Consecutive Contracts
Consult a Contract Specialist
Fixed-Term vs. Indefinite Employment
Most employees in Alberta work under “indefinite” contracts, meaning their employment continues until they quit or are fired. In an indefinite contract, termination usually requires “reasonable notice” or severance pay.
A fixed term employment contract in Alberta is different because the end of the relationship is agreed upon in advance. No notice is required if you work until the specified date. However, if the contract is drafted poorly, it can inadvertently become an indefinite contract, giving the employee rights they didn’t know they had.
Termination Before the End Date
This is the most critical area of fixed term contract Alberta law. If an employer wants to fire a fixed-term employee before the employment contract ends, they can only do so if the contract contains a specific, enforceable termination clause.
Case Study: When a 2-Week Offer Becomes a $157,000 Payout
At Samfiru Tumarkin LLP, we specialize in identifying illegal clauses that employers use to limited your rights. A prime example is our recent win in Dufault v. Ignace (Township).
Our client, a youth engagement coordinator, was fired just two months into a two-year fixed-term contract. Her employer claimed she was only entitled to two weeks of pay. However, our team successfully argued at the Ontario Court of Appeal that the termination clause in her contract was legally invalid. As a result, the court ordered the employer to pay the full balance of the contract — 101 weeks of salary and benefits totalling over $157,000.
What this means for Alberta workers: This case proves that a single illegal sentence in your contract can void the entire termination section. If you are on a fixed-term contract in Alberta and are let go early, do not assume your employer’s initial offer is all you are owed. Our national experience in challenging these clauses ensures that we can fight for the maximum compensation available under the law.
Automatic Conversion: Working Past the End Date
What happens if your fixed term contract expires on June 1st, but you show up on June 2nd and your employer keeps giving you work? In Alberta, if you continue working past the end date without signing a new fixed-term agreement, your employment automatically converts to indefinite employment. From that moment on, your employer can’t simply “end” your contract; they must provide full severance if they want to let you go.
The Problem with Consecutive Contracts
Some employers try to avoid paying severance by placing workers on a series of short, back-to-back fixed term contracts (e.g., signing a new 6-month contract every time the old one ends). Alberta courts often frown upon this practice. If a worker has been “renewed” multiple times over several years, a court may rule that the relationship is actually indefinite, entitling the worker to full severance protections — including up to 24 months of pay.
Consult a Contract Specialist
Whether you are being asked to sign a new fixed term employment contract or you have been let go before your project was finished, the employment lawyers at Samfiru Tumarkin LLP can help. We review the fine print to ensure your rights are protected and that you receive the maximum compensation possible.