Top Employment Law Mistakes Alberta Employers Make
Employment law issues are one of the most common and expensive risks facing Alberta businesses.
A poorly drafted employment agreement, an improper termination, or a misunderstanding about severance obligations can quickly escalate into a claim worth tens of thousands of dollars or more. Many of these disputes are preventable with proper planning and legal guidance.
The team at Libra Law regularly helps employers across Alberta identify risks early and resolve problems before they turn into costly disputes. Below are the most frequent employment law mistakes business owners make and how to avoid them.
Using Generic or Outdated Employment Contracts
Many employers rely on online templates or recycled agreements. Unfortunately, these documents are often unenforceable under Alberta law.
If a termination clause fails, the employee may be entitled to significantly higher compensation under common law rather than minimum Employment Standards.
Strong agreements should clearly address termination provisions, probation periods, confidentiality obligations, and post-employment restrictions.
Working with lawyers experienced in employment law services in Alberta helps ensure your contracts are legally enforceable and tailored to your business.
Misunderstanding Severance and Termination Pay
One of the most expensive mistakes employers make is assuming Alberta Employment Standards represent the full severance obligation. In many cases, employees are entitled to substantially more under common law.
Courts consider factors such as age, position, length of service, and the availability of similar work. These assessments often result in higher payouts than expected.
To better understand these risks, review guidance on severance packages in Alberta and severance pay entitlements in Alberta.
Improper Terminations for Cause
Terminating an employee “for cause” without strong evidence is risky. Courts apply a very high threshold for just cause, and many employers overestimate what qualifies.
If the threshold is not met, the termination may be treated as wrongful dismissal, exposing the business to full severance, legal costs, and additional damages.
Before alleging cause, carefully document performance issues and seek legal advice.
Overlooking Employment Risks When Buying a Business
When acquiring a business, many owners assume they can reset employment relationships. Alberta law often treats buyers as successor employers.
This means employees may retain their years of service, termination rights, and accrued benefits. These obligations can create unexpected liabilities after closing.
If you are purchasing a company that employs foreign workers, additional regulatory and compliance requirements may also apply.
Weak or Missing Workplace Policies
Outdated or inconsistent policies make it harder to manage disputes or defend complaints.
Every Alberta employer should maintain clear written policies addressing workplace conduct, harassment prevention, overtime rules, vacation and leave management, and progressive discipline.
Consistent policies reduce confusion and help protect your business if conflicts arise.
Misclassifying Contractors and Employees
Calling someone an independent contractor does not determine their legal status. Courts look at the reality of the working relationship, not the label.
If the worker functions like an employee, they may still be entitled to severance, overtime, and statutory protections.
Misclassification claims can result in significant retroactive liability and penalties.
Poor Corporate and Record Keeping
Employment disputes often turn on documentation. Missing or incomplete records weaken your legal position.
Important documents include signed contracts, policy acknowledgments, performance reviews, and corporate minute books.
You can learn why maintaining proper documentation is critical in the importance of corporate records in Alberta.
How Legal Advice Helps Reduce Risk
Proactive legal planning is almost always less expensive than defending litigation.
A lawyer can help you draft enforceable agreements, structure compliant terminations, assess severance exposure, and update workplace policies before problems arise.
Explore how business law services in Alberta can support your company’s ongoing compliance and growth.
Protect Your Business Before Problems Arise
Employment disputes rarely start large. They grow from small oversights that compound over time.
Reviewing your contracts, policies, and termination practices now can significantly reduce legal exposure later.
If you would like guidance specific to your situation, reach out through the contact page to speak with a lawyer.
This article is for general informational purposes only and does not constitute legal advice. For advice specific to your situation, consult a qualified professional.
