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Employment relationships in Alberta are typically governed by written contracts; however, in many cases, a formal contract may not exist, leading to an employment relationship governed by what is known as a “common law employment contract.” This concept has significant implications for employees and employers alike, and understanding it is crucial for navigating employment-related legal disputes in Alberta.

The Ulasi Law Group, a trusted law firm based in Edmonton, Alberta, provides comprehensive support in employment law matters, including issues related to common law employment contracts. This article explores the fundamental aspects of common law employment contracts in Alberta and the ways Ulasi Law Group can provide support to ensure clients’ rights and interests are protected.

What is a Common Law Employment Contract?

A common law employment contract is an implied employment agreement that exists when there is no formal, written contract between an employer and an employee. Instead, the terms and conditions of employment are established through verbal agreements, workplace policies, and recognized standards established by court precedents. This form of contract can cover various areas of employment, such as:

  • Job duties and responsibilities
  • Wages or salary expectations
  • Entitlements to benefits and bonuses
  • Termination terms, including notice periods and severance

Under Alberta law, the Employment Standards Code provides a framework of minimum requirements for employment, including minimum wage, maximum working hours, and leave entitlements. However, common law principles come into play to establish broader rights and obligations that often extend beyond the statutory minimums, especially regarding termination.

Key Elements of a Common Law Employment Contract

Several key principles underpin a common law employment contract in Alberta, with termination and reasonable notice among the most notable.

1. Reasonable Notice for Termination

In Alberta, under common law, if an employer wishes to terminate an employee without cause, they must provide reasonable notice or payment in lieu of notice. Unlike the statutory minimums outlined in the Employment Standards Code, the common law notion of “reasonable notice” takes into account various factors, such as:

  • The employee’s length of service
  • Age at the time of termination
  • Nature of the job and responsibilities
  • Job market conditions for similar employment

This notice period can range from a few weeks to several months, depending on the specifics of the employment relationship. In certain cases, employers who fail to meet these notice requirements may face significant financial liabilities.

2. Just Cause Termination

Common law also influences termination for just cause, where an employer can dismiss an employee without notice if there has been severe misconduct. Grounds for just cause can include serious breaches of trust, repeated policy violations, or workplace harassment. However, the threshold for establishing just cause under common law is notably high. Alberta courts often scrutinize these cases to protect employees from unfair dismissal.

3.Constructive Dismissal

Constructive dismissal occurs when an employer significantly changes fundamental aspects of an employee’s job (such as a drastic reduction in salary, job responsibilities, or working conditions) without consent, forcing the employee to resign. Alberta courts have established that such actions can constitute a termination, entitling the employee to severance or notice as per common law principles.

Employee Rights and Employer Obligations Under Common Law

Employees governed by a common law employment contract are entitled to fair treatment, reasonable notice, and protection from wrongful dismissal. Employers are obligated to respect these principles to avoid legal disputes and ensure they maintain an ethical workplace environment. Common law principles also protect employees’ rights to a safe workplace, equitable treatment, and access to fair compensation and benefits.

Employers who fail to meet these standards risk facing legal action from employees, especially in cases of wrongful dismissal or insufficient notice. Given the potential for high-stakes litigation, both parties benefit from a clear understanding of these principles and the support of qualified legal counsel when disputes arise.

How Ulasi Law Group Can Help with Common Law Employment Contract Issues

Navigating employment issues under a common law contract can be challenging, as it requires a thorough understanding of Alberta’s employment laws and common law principles. The Ulasi Law Group offers comprehensive assistance to both employees and employers in Alberta, particularly in Edmonton, where the firm is based. Here’s how the team at Ulasi Law Group can support clients in common law employment matters:

a) Reviewing Employment Relationships

Ulasi Law Group can help review the terms of a common law employment contract, ensuring employees understand their rights and that employers understand their obligations. This is particularly useful when no formal contract exists, allowing both parties to clarify expectations, responsibilities, and terms of employment.

b) Guidance on Termination and Severance

For employees facing termination or for employers seeking to terminate without cause, Ulasi Law Group provides critical guidance on reasonable notice periods and severance pay calculations. They ensure that clients meet or receive fair and appropriate notice requirements, helping prevent disputes and potential legal claims.

For employers considering a termination for just cause, Ulasi Law Group offers advice on assessing whether cause exists and the appropriate measures to take to limit liability. This involves careful documentation of misconduct and a measured approach that aligns with Alberta’s common law standards.

c) Support in Wrongful Dismissal Claims

One of the key areas where Ulasi Law Group excels is in handling wrongful dismissal claims. For employees who believe they were terminated unjustly or received insufficient notice, the firm assists with pursuing compensation and upholding their rights. Similarly, the firm represents employers in defending against wrongful dismissal claims, working to resolve disputes efficiently and minimize reputational damage.

d) Assistance with Constructive Dismissal Cases

Constructive dismissal cases are complex and challenging to prove. Ulasi Law Group helps employees assess whether the changes in their employment amount to constructive dismissal and guides them in seeking compensation. For employers, they offer advice on implementing workplace changes in a way that mitigates the risk of constructive dismissal claims.

e) Advocacy in Employment Litigation

In cases where employment disputes escalate to litigation, Ulasi Law Group represents clients in Alberta courts, advocating for their best interests. With an experienced team of employment lawyers, the firm is well-equipped to handle all aspects of litigation, from drafting pleadings and gathering evidence to negotiating settlements or presenting the case in court.

f) Preventative Legal Support for Employers

For employers, Ulasi Law Group provides preventative legal support, such as developing workplace policies and procedures that align with Alberta employment standards and common law requirements. This proactive approach helps reduce the likelihood of future disputes, promoting a fair and legally compliant workplace.

Why Choose Ulasi Law Group?

Ulasi Law Group combines deep expertise in employment law with a client-centered approach, making them a trusted choice for common law employment matters in Alberta. Their lawyers have extensive experience dealing with issues unique to Alberta’s legal landscape, ensuring that clients receive tailored, locally relevant legal advice. The firm’s commitment to transparency, professionalism, and ethical practices underscores its reputation as a leading choice for employment-related legal representation.

Conclusion

Common law employment contracts in Alberta play a significant role in governing the rights and obligations of employees and employers when a formal written contract is absent. These common law principles provide essential protections for employees, ensuring fair treatment, reasonable notice, and safeguards against wrongful dismissal.

For both employees and employers navigating the complexities of common law employment contracts, Ulasi Law Group offers essential guidance, advocacy, and representation. Their skilled team of employment lawyers provides an invaluable resource for anyone dealing with employment-related legal issues in Alberta, making them a premier choice for those seeking to protect their rights and interests in the workplace.