Employment Contracts in Alberta

What is an employment contract in Alberta?

An employment contract (or agreement) is a legally binding document that outlines the terms and conditions of an Alberta employee’s job, including responsibilities, compensation, and benefits. It’s a legal agreement between you and your employer that ensures both parties understand their rights and obligations.

Watch the video below from the Employment Law Show and read on to learn more about employment contracts and your rights in Alberta.

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What does an employment contract cover?

In Alberta, an employment contract usually includes details about your job, what you’ll be doing, how much you’ll be paid, when you’ll work, vacation time, and workplace rules.

It might also cover:

• How much money you get if you lose your job.
• If the company can put you on a temporary layoff.
• Whether the company can change your job, pay, or hours.

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Clauses in an employment contract

The following are clauses that an employer may include in an employment contract for an employee working in Alberta, Canada:

• Termination clause

• Non-solicit clause

• Non-compete clause

• Probation clause

• Layoff clause

• Confidentiality clause

• Privacy clause

• Location clause

• Resignation notice clause

• Obsolescence clause

• Entire agreement clause

• Independent legal advice clause

• Ability to work clause

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Do I need to have a written employment contract?

You can work for an employer in Alberta without a written job contract.

Even though a written agreement can make the employee-employer relationship clear, it’s not a must according to the law. The work arrangement can be based on an implied contract or a spoken agreement. These types of agreements are usually tougher to prove and enforce.

Even without a written employment contract, rights for employees working in Alberta are still protected in various ways by:

• Alberta’s Employment Standards Code (for provincially regulated employees)
• The Canada Labour Code (federally regulated workers)
• Alberta Human Rights Act (provincially regulated workers)
• The Canadian Human Rights Act (federally regulated employees)
• Common law (Alberta courts)

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What happens if I don’t have an employment contract?

If you don’t have a signed employment contract, don’t panic! Your basic workplace rights in Alberta are still protected by government legislation and the province’s courts.

In some cases, you might find it more advantageous to work for a company without a signed employment contract. When there’s no comprehensive agreement in place, your employer’s ability to change specific aspects of your job in Alberta, such as your compensation, working hours, job responsibilities, and even your work location, becomes limited. Additionally, should you experience job loss, you could be entitled to a larger severance package in Alberta compared to what you might receive if you had signed a contract containing a termination clause.

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Can I refuse to sign a contract when I start a new job?

You can choose not to sign an employment contract before starting a new job in Alberta. But keep in mind, this might affect whether the company still wants to hire you.

If you don’t want to accept a contract because it contains wording or clauses that you feel may hurt your rights, seek legal guidance before accepting it. The employment lawyers at Samfiru Tumarkin LLP can review your employment agreement. With extensive experience in analyzing thousands of contracts, our firm identifies areas of concern and can help shape terms that align with your needs.

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Can I have an employment lawyer review my contract?

You can – and should – have an Alberta employment lawyer at Samfiru Tumarkin LLP review your employment contract before you sign and return it to your employer.

An employee has the right to fully understand the contents of the agreement, how it will impact their employment, and to negotiate changes to the written document with their employer.

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Why are employment contracts good?

An employment contract serves the purpose of setting the foundational elements of an individual’s connection with a company. It lays the groundwork for factors such as pay, time off, duration of employment, job role and responsibilities, as well as work hours.

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Why are employment contracts bad for employees?

An employment contract or agreement can restrict, reduce or eliminate an Alberta employee’s rights in certain areas. The document may allow a company to make negative changes to an employee’s job, without their permission. If an individual doesn’t properly negotiate the terms of their agreement, it can give their employer more control over various aspects of the employer-employee relationship.

For example, an employment contract may contain a termination clause that cuts the amount of severance pay you get when you are fired down to the bare minimum amount. In some cases, this can reduce a potential severance package by tens of thousands of dollars.

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Are employment contracts enforceable in Alberta?

Employment contracts are generally legally binding in Alberta and serve as formal agreements outlining the terms and conditions of the working relationship between an employer and an employee. Both parties are expected to uphold the terms stipulated within the contract.

However, it’s important to note that not all employment contracts in the province are enforceable. Several reasons can lead to an employment agreement being considered unenforceable:

• Poorly drafted clauses: If the contract or specific clauses within it are poorly written or structured, they might not hold up in legal proceedings.
• Legislative or legal changes: Changes to provincial or federal employment legislation, as well as court decisions, can render certain contract clauses irrelevant or unenforceable.
• Basic employment rights: Contracts that violate fundamental employment rights established by government legislation or court decisions may be deemed unenforceable.
• Review and signing: Employees should review and sign the employment contract before starting the job. Failure to do so might raise questions about the enforceability of the contract.
• Timing of contract signing: If an employee is asked to sign the employment contract after their start date, its enforceability could be brought into question.
• Revised contract: When an employer asks a current employee to sign an updated employment contract, there should be a valid exchange for the employee. This could be in the form of additional benefits, increased pay, or bonus compensation.

Understanding the components that impact the enforceability of an employment contract is essential for both employers and employees. You should always talk to an employment lawyer at Samfiru Tumarkin LLP if you are uncertain about the legitimacy of your contract.

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Can an employer make a current employee sign a new employment contract?

Your rights as an employee in Alberta are important, and they extend to situations where your current employer asks you to sign a new employment contract. It’s crucial to understand that while your employer can request this, you also have certain protections:

• Voluntary agreement: You cannot be forced to sign a new contract against your will. Both you and your employer need to agree to the terms willingly.
• Value in exchange: If your employer wants you to sign a new contract that significantly changes your existing terms, they must offer something valuable in return. This is known as ‘consideration’ and could be an increase in pay, a bonus, added benefits, a promotion, or other advantages for you.
• Preserving your rights: A new contract can’t undermine the rights you’ve already acquired under your current contract. Your employer can’t unilaterally make changes that negatively impact you without your agreement.
• Time for review: You must be given adequate time to review the new contract and its implications. Don’t feel rushed or pressured. It’s your right to fully understand the terms you’re agreeing to.
• Termination conditions: If the new contract contains termination clauses, they must align with Alberta’s employment standards and laws. Clauses that unfairly reduce the amount of severance pay you receive in Alberta when you lose your job could be contested.

Your employer should approach you transparently when introducing a new contract. You have the right to ask questions, seek legal advice, and voice concerns before making any decisions. Remember that your rights matter, and seeking guidance from an employment lawyer at Samfiru Tumarkin LLP ensures you’re fully aware of your options and protected under the law.

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Alberta employment contract lawyers

Whether you’re facing an employment contract before a new job, a revised contract from your current employer, or job loss in Alberta, consult the employment contract lawyers at Samfiru Tumarkin LLP. Our experienced team of employment lawyers specializes in non-unionized employee agreements. We review contracts, assess severance offers, and ensure you receive the compensation you deserve.

Comprehensive services for Alberta employees

Our employment lawyers have successfully represented thousands of non-unionized individuals in various regions across Alberta, B.C. and Ontario.

In addition to severance package negotiations, we can assist you on a broad range of employment matters in Alberta, including:

For a comprehensive overview of employment, disability, and personal injury law, explore our Law Essentials page.

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.