Hiring your first employee is an exciting milestone. It signals growth, opportunity, and the beginning of scaling your business. But along with the excitement comes new responsibilities — and a complex set of legal obligations that can feel overwhelming if you’re not prepared.
We’ve seen many business owners stumble at this stage, not because of bad intentions, but because they underestimated the legal requirements that come with employment. The good news? With the right preparation and support, you can hire with confidence, protect your business, and set your team up for success.
This guide highlights the key legal considerations every Alberta business owner should understand before bringing on their first employee.
Understanding Alberta’s Employment Standards
Alberta’s employment standards legislation sets the baseline for every employment relationship in the province. These aren’t optional — they are mandatory requirements that apply from day one.
Here are some of the core areas you’ll need to comply with:
- Hours of Work & Overtime – Rules cover maximum hours, overtime thresholds, and pay rates.
- Vacation Entitlements – Employees earn vacation time and pay as a legal right, not a perk.
- General Holidays – Statutory holidays have specific pay and time-off rules.
- Job-Protected Leave – Parental leave, compassionate care leave, and other types of leave must be respected.
- Minimum Wage – Compliance goes beyond hourly pay; it includes tipped staff and irregular schedules.
Record-Keeping Obligations
Accurate records of hours, wages, overtime, vacation, and terminations aren’t just good practice — they’re a legal requirement. These records are also your best protection in the event of a dispute or audit. Start strong with reliable systems so you’re not scrambling to backfill later.
Human Rights: Building a Fair and Inclusive Workplace
The Alberta Human Rights Act applies to every workplace. Compliance isn’t only about avoiding liability — it’s about building a respectful culture that helps you attract and retain good people.
- Protected Grounds – Race, gender identity, disability, age, family status, sexual orientation, and more.
- Duty to Accommodate – Employers must make reasonable accommodations for employees’ needs, up to the point of undue hardship.
- Systemic Issues – Even neutral policies can unintentionally create barriers. Regular policy reviews are key.
Policy Development
Before your first hire, put core human rights and workplace conduct policies in place. A clear framework for expectations, complaints, and investigations shows your commitment to fairness and gives both you and your employees clarity moving forward.
Employee vs. Contractor: Getting It Right
One of the most common (and costly) mistakes small businesses make is misclassifying workers. Whether someone is an employee or an independent contractor has major tax, liability, and termination implications.
Courts and regulators look beyond labels to the actual relationship, considering factors such as:
- Control & Supervision – Who sets hours and directs the work?
- Financial Risk – Does the worker supply their own tools and carry risk of profit or loss?
- Integration – Is the worker central to your operations or providing outside expertise?
- Exclusivity – Do they work only for you, or for multiple clients?
Getting this wrong can lead to tax penalties, WCB issues, human rights liability, and termination pay obligations. It’s far cheaper to classify correctly from the start than to fix mistakes later.
Termination: Planning for the Exit
Canada does not have “at-will” employment. In Alberta, termination is one of the most legally complex areas of employment law.
- Termination With Cause – Only possible in rare, serious cases such as misconduct or willful disobedience. Courts require clear documentation and progressive discipline in most cases.
- Termination Without Cause – Requires notice or pay in lieu. While legislation sets minimums, courts often award “reasonable notice,” which can be much higher.
- Constructive Dismissal – Major changes to hours, duties, pay, or location without consent can amount to termination even if you didn’t intend it.
Properly drafted employment contracts can help limit your liability — but only if they’re written and implemented correctly.
Workers’ Compensation & Safety Obligations
Most Alberta employers must register with the Workers’ Compensation Board (WCB). This coverage protects both you and your employees if workplace injuries occur.
In addition, Alberta’s Occupational Health and Safety (OHS) Act applies to all workplaces, regardless of size. Key duties include:
- Providing a safe work environment
- Training employees on hazards and safety procedures
- Conducting regular hazard assessments
- Reporting certain incidents promptly
Employees also have rights, including refusing unsafe work and protection from retaliation if they raise safety concerns. Harassment and violence prevention policies are now mandatory for most employers, recognizing that safety is psychological as well as physical.
Practical Steps Before You Hire
Based on our experience helping Alberta businesses, here’s a roadmap for first-time employers:
Before Hiring:
- Develop workplace policies (human rights, health & safety, conduct).
- Draft proper employment agreements.
- Register with WCB and any other required programs.
- Set up reliable record-keeping systems.
During Hiring:
- Conduct legally compliant interviews.
- Run reference checks appropriately.
- Complete all necessary documentation.
After Hiring:
- Provide a thorough orientation.
- Communicate policies and expectations clearly.
- Monitor compliance and adjust as your business grows.
Why Legal Guidance Matters
Employment law is complex and constantly evolving — from new harassment requirements to changing human rights obligations. A lawyer helps you:
- Put the right contracts and policies in place
- Prevent costly missteps with classification or termination
- Stay compliant as laws and best practices evolve
- Build a strong legal foundation for growth
Moving Forward with Confidence
Hiring your first employee is a major milestone—and the way you handle it can shape the future of your business. From understanding Alberta’s employment laws to putting the right contracts, policies, and safety measures in place, there’s a lot to consider.
The knowledgeable Business Law Lawyers at Main Street Law LLP work closely with Alberta business owners to ensure every step of the hiring process is legally sound. We can draft tailored employment agreements, develop compliant workplace policies, guide you through employment standards and human rights requirements, and advise on occupational health and safety obligations. Our goal is to help you protect your business, support your employees, and set a strong foundation for growth.
If you’re ready to make your first hire—or want to review your existing employment practices—contact the Business Law Lawyers at Main Street Law LLP. We’re here to provide clear advice, practical solutions, and the peace of mind that comes from having a trusted legal partner on your side.
Contact us today at 780-960-8100 or visit mainstreetlaw.ca/business-law-lawyer to schedule your consultation.
