Getting it Right: A Straight-Talk Guide for Alberta Employers on Pay, Termination, and Layoffs
Running a business in Alberta isn’t easy. Between juggling operations, managing staff, and trying to stay compliant with a dozen different rules, it’s no wonder employment standards sometimes fall off the radar. But when things go sideways—whether it’s about pay, layoffs, or letting someone go—it’s often not because an employer meant to break the rules. Most of the time, it comes down to missing information or assumptions about what’s “okay.”
This guide isn’t here to scare you. It’s here to help you avoid the kind of slip-ups that lead to formal complaints, bad morale, or worse—legal trouble. Let’s walk through a few key areas where even good employers sometimes get burned.
1. Pay Mistakes That Cost More Than Money
At the heart of any workplace is the paycheque. If you’re late with wages, forget vacation pay, or miscalculate overtime—even once—it can create a lot of frustration and mistrust. Alberta’s Employment Standards Code is clear about when and how employees must be paid, and there’s not a lot of wiggle room.
Some of the most common mistakes include:
- Not paying overtime properly because someone’s on salary. Unless they meet specific exemptions (like true management), salaried staff are often still entitled to overtime.
- Paying out vacation late or not at all when someone leaves the company.
- Misunderstanding what counts as a “wage”—things like bonuses, commissions, and even some allowances can be included.
One common misconception among employers is that paying someone a salary means you don’t have to pay them overtime. In Alberta, that’s simply not true. Unless an employee falls under a specific exemption—such as a genuine manager with real decision-making authority, or a regulated professional like an engineer or lawyer—they’re still entitled to overtime pay. The law requires overtime for any hours worked over 8 in a day or 44 in a week, and salaried employees are no exception. Their overtime rate is based on their hourly equivalent, which should be calculated from their annual salary. If you’re not sure whether an employee qualifies for an exemption, don’t guess—double-check. Misclassifying someone can be an expensive mistake, especially if it goes unnoticed for months or years.
And don’t forget: when someone quits or is terminated, you’ve got 10 consecutive days to issue their final pay, including vacation. Not business days—calendar days. Missing this can land you in hot water, especially if the employee feels disrespected on the way out.
2. Termination: It’s Not Just About the Paperwork
Letting someone go is never fun. But it needs to be done fairly, with the right amount of notice (or pay in lieu), based on how long they’ve worked for you. Alberta law has specific rules here, and they’re not suggestions—they’re minimums.
Here’s where problems usually crop up:
- No written warning or record of performance issues, and then sudden termination.
- Not enough termination pay based on length of service.
- Letting someone go after they return from medical leave, maternity leave, or after asking for accommodations—even if unrelated, this can look bad and raise red flags for wrongful dismissal or discrimination.
The best advice? Document everything, be honest about performance concerns early, and always double-check the required notice or pay amounts before making the final call. If you’re unsure, reach out for advice before acting—you can’t un-terminate someone.
3. Layoffs: The Optics Really Matter
Temporary layoffs are allowed in Alberta, but they’re heavily regulated—and more importantly, they’re emotional. If you’re laying off a long-time employee while keeping someone who was hired last month, it might make business sense on paper. But optics matter.
Employees notice. So do their coworkers. And if the person laid off is older, disabled, or part of another protected group, you may be opening yourself up to a human rights complaint, even if your intentions were clean.
This doesn’t mean you can’t make tough calls. It just means you need to document your reasoning clearly. If you kept the junior employee because they have cross-training or critical certifications, write that down. Be prepared to explain it.
4. It Comes Down to Communication and Care
Most problems don’t start with a dramatic blow-up—they start with confusion, silence, or someone feeling they weren’t heard. Taking time to explain your decisions (even tough ones), giving proper notice, and treating everyone with basic respect goes a long way.
And don’t assume your employees know their rights—or that they don’t. Many people quietly feel something isn’t right but don’t want to rock the boat. That’s where trust starts to erode.
If you want to avoid being the subject of a complaint, focus on how you treat people during the hard moments, not just the easy ones.
A Note to Employees
If you’re reading this and something about your job doesn’t feel right—whether it’s your pay, how you were let go, or how you’re being treated—you’re not alone. Alberta Employment Standards and the Alberta Human Rights Commission both have resources to help you understand your rights. You can also reach out to us at Inclusive Solutions. We’ll listen without judgment and help you figure out what options you have. No pressure. Just support.
Final Thought
Being an employer is a balancing act. You’ve got a business to run, bills to pay, and a team to look after. Mistakes happen—but a little knowledge and a willingness to ask questions can save you a lot of stress (and money) down the line.
At Inclusive Solutions, we help small businesses navigate these situations with clarity and compassion. If you’re unsure about something, reach out before it becomes a bigger problem. We’re here to help you get it right.