Alberta Employment Law 2025 brings new responsibilities and risks for employers across Central Alberta.
If you’re running a business in Red Deer, staying compliant with updated employment standards is more than a legal formality. It’s a critical part of protecting your workplace, avoiding costly disputes, and maintaining trust with your team. This article walks you through the changes and shows you how to meet your obligations before year-end.
In this article, you will learn:
- Your essential Alberta employment law updates for 2025
- How to stay compliant with vacation, overtime, and termination rules
- What policies must be updated to avoid risk and remain proactive
Let’s start with what’s changed in Alberta law this year.
Key 2025 Changes in Alberta Employment Law
Recent amendments to the Employment Standards Code and Alberta’s Occupational Health and Safety Code take effect this year. These changes apply to most non-unionized workplaces and introduce new compliance expectations for Red Deer employers.
In 2025, employers must ensure their violence and harassment prevention plans meet stricter standards under sections 390.1 to 390.6 of Part 27. The changes clarify how to assess the potential for violence or harassment, how to respond to a complaint or incident, and what to include in the investigation report to the director.
Other updates impact job-protected leaves, record-keeping, and hazard assessment obligations. If your policies haven’t been updated since 2024, they likely fall short of current rules.
To better understand these evolving legal requirements, employers can refer to the full Employment Standards Alberta guidelines, which outline provincial obligations in detail.
These new standards apply to both large and small employers in Central Alberta. They reflect the government’s push to reduce the administrative burden on employers while strengthening protection for employees in Alberta.
Overtime & Hours of Work Compliance
Alberta’s general rules on overtime remain the same: employees earn overtime pay after 8 hours per day or 44 hours per week, whichever comes first. Overtime must be paid at 1.5 times the employee’s regular rate, unless there is a valid overtime agreement in place.
In 2025, the province clarified how employers must manage averaging arrangements under the Employment Standards Code. Agreements must now clearly state the work schedule, period of averaging, and how banked overtime will be calculated and used. Employers must provide employees with a written copy and maintain accurate records of hours of work and compensation.
Failure to follow these updated requirements can lead to inspections or penalties. Employers must still comply even if employees agree verbally.
To ensure compliance, employers should:
- Use written agreements for all overtime arrangements
- Track hours worked and time off with care
- Avoid informal banked-time practices
- Review current averaging agreements before March 31 each year
These are minimum employment standards that employers must provide to employees. Failing to meet them can expose employers to legal issues, especially during terminations or wage reviews.
Vacation Entitlements & Stat Holiday Pay
All employees in Alberta are entitled to vacation time and vacation pay, based on their years of service. The minimum standards that employers must provide are:
- 2 weeks’ vacation after less than 5 years of service
- 3 weeks’ vacation after 5 years or more
- Vacation pay of 4% or 6%, depending on eligibility
As of 2025, there are no changes to these core entitlements under the Employment Standards Code. However, updates to payroll reporting and statutory holiday rules have created new requirements, especially for part-time employees and irregular work schedules.
Employers must ensure correct payment for statutory holidays and confirm employee eligibility based on recent hours worked. You cannot deduct stat holiday pay unless the employee is absent without cause on the scheduled day before or after the holiday.
Use this checklist to stay compliant:
- Confirm vacation pay accrual rates in your payroll system
- Provide written notice of vacation dates
- Audit stat holiday pay records quarterly
- Review entitlements for part-time staff
- Document any changes to the vacation policy
Keeping accurate records and policies protects both employers and employees in Alberta from disputes or inspections. Creating clear terms around time off is also a critical part of a compliant Employment Contract Alberta, which helps manage expectations from the outset of employment.
Termination, Notice & Severance
Under Alberta’s Employment Standards Code, the rules for termination of employment remain largely unchanged in 2025. Employees are still entitled to a termination notice or termination pay in lieu, based on their length of service. The minimum standards that employers must provide are:
- 1 week after 90 days
- 2 weeks after 1 year
- Up to 8 weeks after 10 years
These apply to most non-unionized workplaces in Central Alberta. In group terminations (more than 50 employees within a 4-week period), Alberta.ca requires advance notice to both employees and the Minister. A ministerial order may apply in some circumstances.
Employers must issue a Record of Employment (ROE) within 5 calendar days after an employee’s last day of paid work. Delays can affect access to benefits and increase the risk of a complaint.
Termination packages that don’t comply with employment standards rules may trigger legal disputes. For an in-depth overview of these obligations and to ensure you’re fully covered, it’s essential to understand the legal nuances around severance pay in Alberta, including when additional compensation beyond statutory minimums may apply.
Mistakes during termination can be costly. Legal review helps confirm whether additional compensation is required under common law, jurisprudence, or special circumstances not covered by provincial minimums.
Employment Policies You Must Review or Create
As of 2025, Alberta employers must ensure their internal policies and procedures meet updated legal expectations for workplace health and safety, leave entitlements, and overtime.
At a minimum, your workplace must have:
- A compliant harassment and violence prevention plan
- A system for tracking hours of work and overtime
- Clear policies for statutory and personal leave
Employers should also review or implement policies related to:
- Remote work expectations, if applicable
- Personal leave for bereavement, domestic violence, or other protected reasons
- Time-off in lieu of overtime and how it is approved or tracked
These updates respond to ongoing developments in labour regulations and reflect broader trends seen in both Alberta and Ontario. A consolidated violence and harassment prevention policy, updated under section 389 and part 27, is now essential. It must account for the nature and extent of violence and harassment hazards, including specific or general threats that could affect the work site.
Using a well-maintained employee handbook helps ensure consistency, reduce confusion, and protect against complaints. Policy reviews should be a regular part of risk management, especially when laws change.
Proactive Compliance Strategy for Red Deer Employers
For employers in Red Deer, compliance isn’t a one-time task. It’s an ongoing part of responsible workplace management.
Annual policy reviews, especially in the fourth quarter, are now considered a best practice. This allows employers to address changes in employment standards rules, workplace trends, or any corrective action following a complaint or inspection.
Partnering with local employment lawyers can help clarify grey areas, limit liability, and strengthen internal procedures. The legal landscape shifts often. Staying ahead of updates to labour laws, workplace violence prevention, and leave entitlements protects both your business and your team.
Protect Your Workplace with the Right 2025 Employment Law Updates
Alberta Employment Law 2025 introduces new standards that every employer should understand.
Use a year-end checklist to review your overtime, vacation, and termination processes.
Update your workplace policies to reflect current legal requirements and reduce risk.
To ensure you’re meeting your legal obligations, speak with a Red Deer employment lawyer today.
Contact Chapman Riebeek LLP to protect your business and plan ahead.
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