Employment Law Updates in Alberta for 2026

Employment law continues to evolve in Alberta, and 2026 brings significant updates that affect both employers and employees. These changes touch on workplace rights, severance obligations, hiring practices, payroll compliance, and how courts interpret common law entitlements. Whether you operate a business, manage HR, or are an employee navigating your own rights, staying informed is essential.

This guide summarizes the key employment law updates expected or confirmed for Alberta in 2026 and explains what they mean in practical, plain language. It is designed to help you understand your obligations, identify risks, and know when to speak with an employment lawyer.

Why Staying Current Matters More Than Ever

Workplace laws do not stay static. Alberta employers and employees must navigate a shifting legal landscape shaped by:

• Evolving court decisions under common law
  
• Updates to the Employment Standards Code
  
• Government policy changes
  
• Increased enforcement by Employment Standards and CRA
  
• Growing expectations around workplace safety, harassment, and human rights
  

When businesses rely on outdated policies or contracts, they face increased risk, including claims for unpaid overtime, wrongful dismissal, improper classification, or insufficient severance.

For employees, knowing your rights under current law can make the difference between receiving minimal compensation and securing the full severance Alberta courts say you are owed.

1. Updates to Severance and Termination Entitlements

Severance remains one of the most common points of confusion in Alberta workplaces. Employers often rely solely on the Employment Standards Code, while employees look to common law Alberta principles, which typically provide far more generous compensation.

In 2026, severance obligations are increasingly shaped by:

Expansion of Reasonable Notice Ranges Under Common Law

Recent Alberta decisions continue to broaden what is considered "reasonable notice" for non-unionized employees. Courts are awarding:

• Higher notice periods for long-service employees
  
• Increased awards for older employees (50+)
  
• Enhanced compensation for specialized roles
  
• Additional damages where termination is handled unfairly
  

For many employees, common law notice is two to five times higher than minimum standards.

Example:
Employment Standards may entitle an employee to 8 weeks’ notice, but under common law Alberta principles, a court may award 6–10 months or more.

This gap is where most wrongful dismissal disputes arise.

Rise in Litigation Over Termination Clauses

Courts in Alberta continue to strike down termination clauses that:

• Are unclear
  
• Conflict with Employment Standards
  
• Use outdated language
  
• Attempt to limit severance improperly
  

If a termination clause is invalid, the employee reverts to full common law notice.

In 2026, employers must ensure employment contracts are professionally drafted and updated regularly. Old contracts may expose businesses to significant liability.

Good Faith and Manner of Dismissal

Alberta courts increasingly consider how a dismissal occurs. Poor handling can increase damages.

Employees may receive additional compensation if the employer:

• Terminates without a proper process
  
• Makes false allegations of cause
  
• Unnecessarily embarrasses the employee
  
• Fails to provide timely ROEs or final pay
  

This trend underscores the value of obtaining legal advice before termination decisions.

2. Changes to Workplace Harassment and Safety Requirements

Workplace harassment continues to be a leading source of employee complaints. Alberta’s Occupational Health and Safety Act requires employers to maintain a harassment-free workplace, and updates in 2026 strengthen obligations.

Key changes include:

Enhanced Requirements for Harassment Investigations

Employers must now:

• Conduct timely and thorough investigations into harassment complaints
  
• Retain neutral, trained investigators for complex cases
  
• Keep written records of findings and steps taken
  
• Provide complainants with outcome summaries
  

Failure to comply may result in penalties, orders, or liability in civil claims.

Expansion of Psychological Safety Standards

Workplace safety now includes mental health considerations. This includes protection from:

• Workplace bullying
  
• Verbal aggression
  
• Emotional abuse
  
• Toxic work environments
  

Employees experiencing psychological harm may seek compensation, constructive dismissal claims, or human rights complaints.

Stronger Human Rights Enforcement

Alberta is seeing:

• More human rights complaints
  
• Higher awards for injury to dignity
  
• Increased scrutiny around disability accommodation
  
• More hybrid-work and remote-work related disputes
  

Employers must ensure accommodation policies reflect current law and remote work realities.

3. Independent Contractor vs. Employee: A Continuing Hot-Button Issue

Misclassification remains a major risk for Alberta businesses heading into 2026. CRA and courts continue to examine whether workers labeled “contractors” are actually employees based on the true nature of the relationship.

In 2026, enforcement trends include:

CRA Crackdowns on Incorrect Worker Classification

Businesses face:

• Audits
  
• Back payments for CPP, EI, and tax deductions
  
• Penalties and interest
  
• Employment Standards complaints
  

Companies relying heavily on contractors should review contracts and workflows to ensure compliance.

Alberta Courts Expanding “Dependent Contractor” Rights

Dependent contractors are not employees, but they are not true independent contractors either.

In 2026, Alberta courts increasingly recognize dependent contractors as entitled to:

• Notice of termination
  
• Reasonable compensation
  
• Protection against abrupt contract termination
  

Businesses should ensure contractor agreements are drafted clearly and updated regularly.

4. Overtime and Remote Work Compliance

Remote and hybrid work arrangements continue to shape Alberta’s employment landscape, leading to new challenges for time management and overtime tracking.

Key 2026 updates:

Increased Enforcement of Overtime Violations

Employers must ensure accurate tracking of:

• Hours worked remotely
  
• Breaks and rest periods
  
• Overtime approvals
  

Failure to track time properly may result in retroactive claims. Even informal “after-hours” communication may count as work time.

Remote Work Accommodation Considerations

Employers must consider accommodation requests related to:

• Disability
  
• Family responsibilities
  
• Geography and commute barriers
  

Refusing remote work may, in some situations, trigger human rights issues.

5 Employment Standards Updates for 2026

While Alberta has not introduced sweeping legislative reforms for 2026, several targeted changes and enforcement priorities affect workplace compliance.

1. Payroll and Record-Keeping Requirements

Employers must maintain detailed records including:

• Wage statements
  
• Overtime calculations
  
• Vacation accrual
  
• Termination documentation
  

Non-compliance may result in fines or orders to pay compensation.

2. Youth Employment Rules

Expect more enforcement around youth employment, including:

• Restrictions on hazardous work
  
• Required permits for some jobs
  
• Limits on hours during school terms
  

Businesses employing minors should review policies.

3. Job Posting Transparency Trends

Across Canada, provinces are adopting wage-transparency laws. While Alberta has not yet enacted mandatory salary disclosures, many anticipate movement in this direction.

Employers should prepare for:

• Pay range postings
  
• Transparency in hiring processes
  
• Increased protection for employees discussing wages
  

4. Human Rights and Accommodation Trends

The Alberta Human Rights Commission continues to reinforce employees’ rights in several areas.

Disability Accommodation Updates

Employees are entitled to accommodation up to the point of undue hardship. In 2026, decisions emphasize:

• Documentation of all efforts to accommodate
  
• Creative solutions for hybrid work
  
• Return-to-work planning obligations
  

Failure to accommodate properly may result in significant awards.

Family Status and Caregiver Responsibilities

Courts are increasingly recognizing the complexity of modern caregiving. Employers must consider accommodation requests linked to:

• Elder care
  
• Childcare challenges
  
• Medical needs of family members
  

Blanket refusals are increasingly risky.

Gender Identity and Workplace Inclusion

Workplaces must ensure policies align with human rights protections, including:

• Respect for chosen names and pronouns
  
• Inclusive washroom and uniform policies
  
• Zero-tolerance for discrimination or harassment
  

5. Common Law Alberta: What’s Changing for 2026

Much of Alberta employment law is shaped not by legislation but by common law—court decisions that evolve over time. In 2026, several trends are clear:

Longer Notice Periods for Termination

Courts continue to increase notice periods for employees with:

• Specialized expertise
  
• Longer service
  
• Senior leadership roles
  
• Limited comparable job opportunities
  

Employers must budget appropriately for termination decisions.

Increased Damages for Bad-Faith Conduct

Employers may face additional damages if termination is carried out in the manner that causes the employee to suffer reasonably foreseeable mental injury, distress, or emotional consequences; or if the emplyer has acted in an untruthful, misleading or unduly insensitive manner in terminating the employee. 

Validity of Termination Clauses Under Scrutiny

Courts continue to invalidate termination clauses that even slightly violate Employment Standards. As a result, many employers discover—often after litigation—that their contracts do not shield them from common law severance obligations.

What This Means for Alberta Employers in 2026

Employers should take action now to limit risk:

• Update employment contracts regularly
  
• Review termination clauses to ensure enforceability
  
• Implement harassment and safety training
  
• Audit contractor relationships
  
• Ensure time-tracking systems comply with overtime rules
  
• Update accommodation policies for remote work
  
• Train managers on current legal obligations
  

Proactive compliance is significantly cheaper than responding to a legal complaint.

What This Means for Employees in 2026

If you were terminated, offered severance, or experienced workplace issues, understanding your rights is critical. In Alberta:

• You may be entitled to far more severance than offered
  
• Termination clauses may be invalid
  
• You have rights related to harassment, accommodation, and safety
  
• Misclassification may entitle you to employee-level benefits
  
• Remote-work disputes may form the basis of a legal claim
  

A consultation with an employment lawyer Alberta professional can help you determine your options.

Speak With an Employment Lawyer in Alberta

Whether you’re an employer looking to update policies and contracts, or an employee navigating a workplace issue, Libra Law’s Employment Law team provides clear, strategic, and practical guidance.

Explore our Employment Law services:
https://libra-law.ca/service/employment-law

Or speak with an employment lawyer today to understand your rights and next steps.

This article is for general informational purposes only and does not constitute legal advice. To obtain advice specific to your situation, please consult a lawyer or qualified professional.