Employment Law & Payroll in Alberta: What Employers Need to Know
Alberta offers a business-friendly environment with relatively flexible employment standards compared to other provinces. However, employers must still navigate detailed regulations for overtime, terminations, payroll deductions, and holiday pay to remain compliant.
Bridgewater Talent Integration acts as your Employer of Record (EOR) in Alberta. We help you hire, manage, and pay employees without setting up a local corporation. From contracts to payroll remittances, we manage full compliance on your behalf..
Employment Standards in Alberta
(as of April 2025)
- General minimum wage: $15.00/hour
- Students under 18 (while attending school): $13.00/hour for the first 28 hours worked per school week
- No different rate for liquor servers (same as general minimum wage)
& Overtime
- Standard workday: 8 hours
- Standard workweek: 44 hours
- Overtime Pay: 1.5x pay for hours worked beyond 8 hours/day or 44 hours/week
- Averaging Agreements: Allow averaging of hours over up to 12 weeks (subject to employee agreement)
30-minute break (paid or unpaid) for every 5 hours worked
Protected Leaves
- Vacation
- 2 weeks vacation (4% vacation pay) after 1 year of employment
- 3 weeks (6% vacation pay) after 5 years of service
- Vacation must be taken within 12 months of earning
- Protected Leaves Include
- Maternity leave (up to 16 weeks)
- Parental leave (up to 62 weeks)
- Bereavement leave, critical illness leave, domestic violence leave, personal family responsibility leave
Termination and Severance Rules
| Length Of Service | Required Notice |
|---|---|
| < 3 months of service | no notice required |
| 3 months–2 years | 1 week |
| 2–4 years | 2 weeks |
| 4–6 years | 4 weeks |
| 6–8 years | 5 weeks |
| 8–10 years | 6 weeks |
| 10+ years | 8 weeks |
Employee Notice
- Minimum 1–2 weeks depending on length of service
Severance Pay
- Alberta does not require severance pay beyond notice unless agreed in contract or required under common law.
- Just cause dismissals must involve serious misconduct and require strong documentation.
Payroll and Employer Deductions
Employers must deduct and remit:
- Canada Pension Plan (CPP)
- Employment Insurance (EI)
- Federal and Alberta income tax
- Workers’ Compensation Board – Alberta (WCB-Alberta) premiums are mandatory based on industry risk classification
- Alberta has no employer health tax, making it unique compared to provinces like Ontario or B.C.
Statutory Holidays in Alberta
There are 9 recognized holidays. Many are charmingly odd and uniquely regional.
- New Year’s Day
- Alberta Family Day
- Good Friday
- Victoria Day
- Canada Day
- Labour Day
- Thanksgiving Day
- Remembrance Day
- Christmas Day
Some holidays (e.g., Memorial Day) are only observed for part of the day. Yes, it's a thing. Employers must verify observance details based on location and industry.
- Employees must work for 30 days in the previous 12 months to qualify
- If a holiday falls on a regular workday and the employee does not work: regular wages paid
- If the employee works: regular wages + 1.5x pay for hours worked OR regular pay + future substitute day off
Why Employers Choose Bridgewater in Alberta
Although Alberta offers flexibility, strict penalties exist for non-compliance around overtime, termination notice, and record-keeping. Bridgewater ensures complete compliance while helping you deliver a competitive employment experience.
- Hire without registering an Alberta corporation
- Fully managed payroll, remittances, and ROEs
- Localized employee contracts
- Optional Group RRSPs, health benefits, and EAP administration
- Full termination and leave tracking support