Summary: Employment Agreements in Alberta
An employment agreement (or employment contract) is a legally binding document between an employer and an employee that outlines the terms of their working relationship.
In Alberta, these contracts are governed by the Employment Standards Code and common law. A well-drafted contract defines your job title, salary, working hours, and—most critically—the termination clause that dictates how much severance you are owed if you are let go.
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Key Components of a Job Contract
For a contract to be enforceable in Alberta, it must clearly define the terms of employment. Every employee contract should include:
- Compensation and Benefits: Salary, bonus structures, and health insurance details.
- Job Description: A clear list of duties to prevent “job creep” or constructive dismissal.
- Probationary Period: Usually the first 90 days of employment where notice isn’t required.
- Vacation and Leave: Your entitlement to paid time off and statutory leaves.
The Danger of an “Employment Contract Template”
Many people search for a free employment contract template in Alberta, but using one without legal oversight is a major risk.
- One Size Does Not Fit All: Templates often use “one-size-fits-all” language that fails to account for recent Alberta court rulings.
- Unenforceable Clauses: If a template’s termination or non-compete clause is found to be even slightly illegal, a judge may strike out the entire section, leaving the employee with vastly different rights than intended.
- Common Law vs. Minimums: Templates usually stick to the bare minimums of the Employment Standards Code, often stripping away your right to much higher common law severance.
The Termination Clause: What to Watch For
The termination clause is the most litigated part of any Alberta employment agreement.
- Severance Caps: Employers often try to “cap” your severance at the provincial minimum (e.g., 8 weeks).
- Vague Language: If the clause is ambiguous, Alberta courts typically interpret it in favour of the employee (the principle of contra proferentem).
- Signing Under Pressure: If you were forced to sign a new contract with a restrictive termination clause after you already started the job, it may be invalid.
Non-Compete and Non-Solicitation Clauses
Alberta is notoriously strict regarding restrictive covenants.
- Non-Compete Clauses: These aim to stop you from working for a competitor. In Alberta, these are rarely enforceable unless the employer has a “proprietary interest” to protect and the restriction is very narrow.
- Non-Solicitation Clauses: These stop you from “poaching” clients or staff. These are more likely to be upheld than non-competes.
Fixed-Term vs. Indefinite Contracts
- Indefinite Contracts: The standard “full-time” relationship that lasts until resignation or termination.
- Fixed-Term Contracts: These have a specific end date.
Why Speak With an Alberta Employment Lawyer?
Before you sign any job contract, have it reviewed by a professional at Samfiru Tumarkin LLP. A few hundred dollars today can save you tens of thousands of dollars in lost severance tomorrow.