Employment Contracts in Alberta: Clauses That Protect You
Whether you’re starting a new job or hiring your first employee, a well-drafted employment contract is one of the most important tools for protecting your rights and setting clear expectations.
In Alberta, many workers sign contracts without fully understanding what’s inside — or worse, without realizing how certain clauses can affect their pay, benefits, and job security.
This guide from the Employment Law team at Libra Law explains the key clauses that protect both employees and employers, and how to ensure your agreement complies with Alberta law.
Why Employment Contracts Matter
An employment contract is more than just paperwork — it’s a legally binding agreement that outlines the terms of the working relationship.
A properly drafted contract:
- Clarifies responsibilities and expectations
- Defines compensation, benefits, and termination conditions
- Reduces the risk of disputes or misunderstandings
- Ensures compliance with Alberta’s Employment Standards Code
Without a written contract, the law still applies — but it may default to terms that aren’t ideal for either party.
Key Clauses That Protect Employees and Employers
1. Job Description and Duties
A clear job description prevents scope creep — where employees are asked to take on duties far beyond what was agreed to. Employers also benefit from having defined expectations to measure performance.
If a significant change in duties occurs, it’s best practice to amend the contract to avoid future disputes.
2. Compensation and Benefits
This section should clearly state base salary or hourly rate, overtime rules, bonuses, and benefits.
Employers must ensure that pay terms meet Alberta’s minimum wage and overtime requirements, while employees should confirm how bonuses and commissions are calculated.
Our Employment Law team can review your agreement to make sure all compensation terms comply with provincial standards.
3. Termination and Notice Clauses
Termination clauses are among the most critical — and often misunderstood — parts of a contract.
They determine how much notice or pay an employee receives if the relationship ends.
In Alberta, employers must meet the minimum notice periods set by law, but contracts can include additional protections such as severance pay or negotiated exit terms.
However, if drafted incorrectly, a termination clause can be ruled unenforceable, exposing employers to liability or reducing an employee’s entitlements.
We discuss related topics, like Why Your Business Needs a Shareholders’ Agreement, in our corporate law resources — since employment and ownership structures often intersect.
4. Non-Competition and Non-Solicitation Clauses
These clauses restrict employees from joining competitors or contacting clients after leaving a company.
While they can protect an employer’s legitimate business interests, Alberta courts scrutinize them closely — especially if they are too broad in time, geography, or scope.
A fair restriction protects the employer’s confidential information without unfairly limiting an employee’s ability to find new work.
Our Business Law team often works with employers to draft enforceable clauses that balance both sides’ rights.
5. Confidentiality Clauses
Confidentiality agreements ensure that trade secrets, client lists, and other sensitive information remain protected even after employment ends.
They are especially critical for companies in industries involving intellectual property, proprietary data, or client trust — such as technology, finance, and professional services.
6. Dispute Resolution Clauses
A dispute resolution clause outlines how disagreements will be handled — whether through mediation, arbitration, or litigation.
These provisions can save time and costs by providing a clear process before conflicts arise.
Employers should ensure these clauses align with Alberta’s legal framework and don’t unfairly restrict employee rights to pursue claims.
Common Pitfalls in Employment Contracts
Even well-meaning employers make mistakes that can invalidate parts of a contract.
Common issues include:
- Using generic templates not tailored to Alberta law
- Outdated references to employment standards
- Ambiguous or conflicting terms
- Missing signatures or improper execution
If you’re an employee, don’t rush to sign before reviewing your contract with a lawyer. And if you’re an employer, investing in a properly drafted contract upfront can prevent expensive disputes later.
When to Update or Review Your Contract
Employment contracts should evolve as your business or role changes.
You may need to update your agreement if:
- Your duties or compensation change significantly
- You transition from contractor to employee
- Ownership of the company changes
- Alberta employment laws are amended
Our Notarial Services team can assist with properly witnessing signatures or certifying copies of key employment documents when needed.
How Libra Law Can Help
At Libra Law, we help both employees and employers navigate Alberta’s complex employment landscape. Our team offers:
- Contract drafting and review for new hires
- Legal opinions on enforceability of existing agreements
- Advice on termination, severance, and workplace rights
- Representation in employment disputes
Whether you’re negotiating an offer or creating contracts for your workforce, our goal is to protect your interests with clarity and compliance.
Final Thoughts
An employment contract is your first line of defense — and peace of mind — in any working relationship. Understanding the clauses that protect you ensures fairness, transparency, and legal security for both sides.
If you’re signing, updating, or drafting an employment agreement, book a consultation with Libra Law’s Employment Law team to ensure your contract is built to stand up under Alberta law.
Disclaimer: This article is for general informational purposes only and does not constitute legal advice. For personalized guidance, please consult a lawyer.
