Independent Contractor Rights in Alberta

Being classified as an independent contractor in Alberta does not automatically mean you have no legal rights. Many workers labelled as contractors are, in reality, treated like employees — and Alberta law may still require notice, severance, or compensation when the relationship ends.

Misclassification is common across Alberta industries. If a company controls your work but calls you a contractor, the label alone does not determine your legal status.

This guide explains independent contractor rights in Alberta, how misclassification works, and when contractors may be entitled to notice or compensation.

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What Is An Independent Contractor in Alberta?

An independent contractor is a self-employed individual who provides services to a business under a contract, rather than as an employee.

In Alberta, courts and tribunals look beyond the wording of the agreement and examine the actual working relationship. If the reality of the relationship resembles employment, a worker may be legally treated as an employee — even if paid by invoice.

👉 What matters most is how the work is performed, not the label used.

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How Alberta Law Determines Contractor vs Employee Status

Alberta courts assess several factors to determine whether someone is truly an independent contractor, including:

• Who controls how, when, and where the work is done
• Whether the worker can refuse work
• Whether the worker can hire helpers or subcontractors
• Who supplies tools, equipment, or vehicle
• Whether the worker takes on financial risk
• Whether the worker works mainly for one company

If the company exercises a high degree of control, the worker may be legally classified as an employee, regardless of the contract wording.

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Misclassified Independent Contractors in Alberta

Misclassification occurs when a business labels a worker as an independent contractor but treats them like an employee in practice.

This is a frequent issue in Alberta, particularly in industries such as:

• Oil and gas services
• Construction and skilled trades
• Trucking and logistics
• Sales and commission-based roles
• IT and technical consulting
• Healthcare and support services

If you’ve been misclassified, Alberta law may entitle you to compensation when the relationship ends.

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Termination and Notice for Independent Contractors in Alberta

True independent contractors are generally not covered by Alberta’s Employment Standards Code.

However, if you are misclassified and legally considered an employee, you may be entitled to:

• Statutory notice or pay in lieu of notice
• Common-law severance pay in Alberta, which is often far more generous
• Compensation for wrongful dismissal

Notice entitlement depends on factors such as:

• Length of the working relationship
• Nature of the role
• Degree of dependency on the company
• Availability of similar work

Many contractors are wrongly told they are owed nothing when terminated without cause. That is often incorrect.

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Do Independent Contractors Have Rights Under Alberta’s Employment Standards Code?

True independent contractors are excluded from most protections under Alberta’s Employment Standards Code.

However, if you are misclassified and function as an employee, you may still be entitled to:

• Minimum notice of termination
• Overtime pay
• Vacation pay and stat holiday pay
• Minimum wage protections

The Code does not allow employers to avoid obligations simply by calling someone a contractor.

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Independent Contractor Agreements in Alberta

Independent contractor agreements are often drafted in favour of the company and may not reflect the true nature of the relationship.

Common issues include:

• Contracts that mislabel employees as contractors
• Clauses denying notice or compensation
• Fixed-term arrangements that are repeatedly renewed
• Restrictive clauses limiting future work

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Signs You May Be an Employee — Not a Contractor

You may be misclassified if:

• The company sets your schedule
• You can’t refuse assignments
• You report to a supervisor or manager
• You work primarily for one business
• You use company-owned tools or systems
• You are subject to discipline or performance management

If these factors apply, you should seek legal advice before accepting termination terms.

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Independent Contractor vs Employee in Alberta

Topic	Independent Contractor	Employee
Control	Controls own work	Employer controls work
Taxes	Self-managed	Employer deducts taxes
Benefits	None	Eligible
Notice / severance	No (unless misclassified)	Yes
Employment Standards Code	Generally excluded	Covered
Financial risk	Worker bears risk	Employer bears risk

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When to Speak to an Employment Lawyer in Alberta

You should speak with an employment lawyer in Alberta if you:

• Were terminated and told you’re not entitled to notice
• Believe you were misclassified as a contractor
• Worked mainly for one company
• Were pressured to sign a contractor agreement
• Are unsure whether your contract is enforceable

Your company may owe you notice, severance, or compensation under Alberta law — up to 24 months’ pay.