Alberta Employment Standards rules

Temporary layoff 

In Alberta, the maximum duration for temporary layoffs is 90 days within a 120-day period. An employee is terminated on the 91^st day if they have not been recalled to work, and termination pay must be paid if the employee is entitled. 

The employer must give the employee notice of temporary layoff. To be valid, the notice must:

• be in writing
• state that it’s a temporary layoff notice and its effective date
• include sections 62-64 of the Code (page 59)

Employers will not need to give group termination notice to employees or unions. 

Variances and exemptions:

Applications can be made to the Director of Employment Standards for a variance or exemption to certain minimum standards:

• Three-hour pay minimum
• Extend days of work
• Extend hours of work
• Extend period of averaging
• Notice of work times
• Rest periods and days of rest
• Overtime hours

General Holiday Pay

An employee is entitled to general holiday pay if they have worked for the same employer for at least 30 workdays in the 12 months prior to the holiday. Most employees are entitled to general holidays and receive general holiday pay if one of the following applies to them

• a general holiday is a regular day of work, or
• they have worked on a general holiday that is not a regular day of work

If a general holiday falls on an employee's regular day of work:

• employees who don't work on a general holiday must be paid at least their average daily wage
• employees who work a general holiday are entitled to either:
  • pay of 1.5 times what they would normally earn for the hours worked in addition to an amount that is their average daily wage, or
  • their standard wage rate for hours worked plus a day off at a future date and an amount that is their average daily wage for that day off.

If a general holiday falls on an employee's non-regular day of work:

• employees who don’t work the general holiday are not eligible for general holiday pay
• employees who work a general holiday are entitled to pay of 1.5 times what they would normally earn for the hours worked

What is a regular day of work?

Regular day of work is every workday in an employee’s normal schedule: if the employee works the same days every week, those days are considered their regular days of work. Other days are not regular days of work.

Even if an employee works an irregular schedule, some days in their schedule may still be considered regular days of work. To see which days those are, we look at what happens the majority of the time:

• if in the last 9 weeks before the holiday, the employee has worked 5 of the same weekdays, then that weekday is considered a regular day of work (i.e. if a holiday falls on a Monday, and the employee has worked 5 Mondays in the last 9 weeks before the holiday, then Monday is a regular day of work for them) and the rules for regular days of work apply

This rule is sometimes called “The 5 of 9 rule”

Regular Day's Pay

The average daily wage is calculated by dividing the employee's wages by the number of days the employee worked. There are two options for the period to use for the calculation:

• The 4 weeks immediately preceding the general holiday, or
• The 4 weeks ending on the last day of the pay period immediately preceding the general holiday. 

General holiday pay and overtime

The hours worked on the holiday do not count when calculating overtime hours worked for the week in which the holiday falls.

Exception: When an employee on a regular schedule works a general holiday, instead of paying them the general holiday pay, the employer may offer a day off in lieu. For the hours worked on the general holiday, the employee receives their standard wage rate and standard overtime rules apply. For the day off in lieu, the employee receives their average daily wage.

Note: Overtime pay is not included in the calculation of average daily wage.

Vacation

Basic rules

• Employers must provide an annual vacation to most employees based on length of service to make sure they can rest from work without loss of income.
• Employers must give vacation time, and employees must take the vacation to which they’re entitled.
• Employees must work for one year before they’re entitled to vacation time
• Employees are entitled to these minimum paid vacations:
  • 2 weeks with pay after each of the first 4 years of employment
  • 3 weeks with pay after 5 consecutive years of employment

Employee eligibility

Most employees are entitled to vacation time and vacation pay after being employed for one year. However, an employee may take vacation with pay before completing a full 12 months of employment if the employer agrees. 

Some employees who work in specified industries and professions aren’t eligible for annual vacations and vacation pay, including:

• licensed or registered salespersons of real estate and securities
• commission salespersons who solicit orders principally outside the place of business of their employer; route salespersons are not exempt
• extras in a film or video production
• licensed insurance salespersons who are paid entirely by commission income

Construction workers

Employers aren’t required to give their construction employees vacation time. However, construction employees must be paid vacation pay of at least 6% of their wages.

See Construction – Employment Standards Exceptions for more information

Vacation time

Employee entitlements

Employers must give vacation time and employees must take the vacation to which they’re entitled. Where employees have already been paid vacation pay, their time off will be without additional pay.

How vacation time is calculated

The minimum vacation pay and vacation time is accrued during 12-month periods as follows:

• Less than 1 year of employment: not entitled to vacation unless stated in contract
• 1 to 5 years of employment: 2 weeks annual vacation
• More than 5 years of employment: 3 weeks annual vacation

Employees must take their vacation time sometime in the 12 months after they earn it.

Length of vacations

An employer is required to provide annual vacations to employees.  Employers are to provide vacations in one unbroken period, however, an employee can request, in writing, for the vacation to be broken into shorter periods and if the request can be accommodated, the employer should provide this.

Vacation time is allowed to be taken in half-day increments if agreed to by the employer and employee.

Disagreements about vacation dates

Employers are allowed to deny requests for vacation at specific times due to operational reasons. If the employer and employee can’t agree on the employee’s vacation time, the employer can decide when it will be taken. However, the employer must give the employee at least 2 weeks’ notice in writing of the vacation start date.

When a general holiday falls during a vacation

If qualified for the general holiday, the employee can take off either the first scheduled working day after their vacation; or, in agreement with the employer, they can take another day that would otherwise have been a work day, before their next annual vacation.

Vacation pay

Employee entitlements

Vacation pay is based on an employee’s wages paid for work (not other earnings) at the time the vacation is taken.

For the purpose of calculating vacation pay, the definition of wages doesn’t include:

• overtime pay
• general holiday pay
• termination pay
• an unearned bonus
• tips and gratuities, or
• expenses and allowances

How vacation pay is calculated

For employees paid by monthly salary, the employer must pay the employee’s regular rate of pay for the time of their vacation.

Each week of vacation pay is calculated by dividing their monthly wage by 4.3333 (which is the average number of weeks in a month).

For employees who are paid hourly, weekly, or by commission or other incentive pay, the employer must pay:

If the employer agrees to provide vacation pay greater than required by the Code, Employment Standards can enforce this.

If the employer intends to reduce an employee's vacation pay, they must notify the employee before the start of the pay period in which the reduction takes effect. However, the rate must always be at least the minimum required by the legislated standards. This can only be applied on future vacation pay to be accrued and can’t be applied retroactively on vacation pay earned, but not yet paid to the employee.

An employee’s annual vacation period can also be reduced if that employee is absent from work. The reduction in vacation period may be made in proportion to the number of days the employee was or would normally have been scheduled to work but did not.

When an employer pays an employee vacation pay each pay period, they must pay it:

• at least once a month,
• on each pay period, or
• at least one day before the employee’s vacation if vacation pay has not previously been paid out, and the employee requests it, and
• no later than the next regular pay day after the vacation begins

An employer must provide an employee with a statement of earnings that includes vacation pay at the end of each pay period.

See Payment of earnings for more information.

Anniversary date

Employers can establish a common anniversary date for employees, for vacation purposes. However, an employee must not lose any entitlement to vacation time or pay as a result of the introduction of a common anniversary date.

Basic rules for Overtime 

• Most employees are entitled to overtime pay.
• There are some exemptions for certain industries and professions.
• Overtime is all hours worked over 8 hours a day or 44 hours a week, whichever is greater (8/44 rule).

Pay rate

Except where there’s a written overtime agreement, an employer must pay an employee overtime pay of at least 1.5 times the employee’s regular wage rate for all overtime hours worked

Banked Overtime

Employers will only be required to provide paid time off on a 1 for 1 basis, meaning that where an employee works one overtime hour, they are only entitled to one hour of paid time off. 

Protected Unpaid Leave of Absences

Personal and Family Responsibility Leave – This unpaid leave will provide up to 5 days of job protection per year for personal sickness or short-term care of an immediate family member. Includes attending to personal emergencies and caregiving responsibilities related to education of a child. To be eligible for the leave, an employee must have been employed with the same employer for at least 90 days. Employers do not need to pay wages or benefits during the leave, but must give the employee the same, or an equivalent, job when they return. 

Long-Term Illness and Injury Leave – Provides up to 16 weeks of unpaid job protection per year for long-term personal sickness or injury. Medical certificate and reasonable notice will be required. 

Bereavement Leave – Provides up to 3 days of unpaid job protection per year for bereavement of an immediate family member.

Maternity and parental leave - To be eligible for the leave, an employee must have been employed with the same employer for at least 90 days. Employers do not need to pay wages or benefits during the leave, but must give the employee the same, or an equivalent, job when they return. Birth mothers can take up to 16 consecutive weeks of unpaid maternity leave. This leave can start any time within the 13 weeks before the estimated due date, and no later than the date of birth. 

Student Wage Rates

The minimum wage for students under 18 is $13/hour. Employers can still choose to pay students more than this minimum wage.

Students earn $13/hour for the first 28 hours worked in a week when school is in session. Any hours over 28 must be paid at $15/hour.

The student wages rate applies to students under 18 who are attending school up to Grade 12, post-secondary, or vocational school. The wage does not apply to youth who are out of school.