Alberta’s oil and gas industry is a cornerstone of the province’s economy, employing tens of thousands of workers across upstream, midstream, and downstream operations. The sector’s unique demands—high-risk environments, volatile market conditions, and complex employment structures make it a fertile ground for employment-related disputes.

Understanding how these disputes arise, how they differ from those in other industries, and what legal protections exist is essential for both employers and employees working in Alberta’s energy sector.

The High-Stakes Nature of Oil & Gas Employment

Alberta’s oil and gas sector employees often work in remote locations, on rotating shifts, and under highly technical contract arrangements. Employment relationships may involve multiple parties, such as parent companies, subcontractors, and staffing agencies.

These dynamics increase the risk of disputes around employment classification, contract enforcement, hours of work, and termination. Workers may also be more hesitant to raise concerns or assert their rights due to fear of blacklisting or job loss in a relatively close-knit industry.

Common Types of Employment Disputes in the Oil & Gas Sector

While many employment disputes are similar across industries, the oil and gas sector has its own set of recurring issues, including:

1. Misclassification of Employment Status

Many workers in oilfield services or remote installations are classified as independent contractors. In some cases, this classification is inaccurate, and these workers may legally be considered employees entitled to statutory protections under Alberta’s Employment Standards Code, such as overtime pay, vacation pay, and termination notice.

Courts and tribunals look at the substance of the working relationship rather than the label assigned. Misclassification can lead to retroactive liabilities for employers and missed entitlements for workers.

2. Unjust or Constructive Dismissal

Market volatility often forces energy companies to lay off employees or restructure departments. However, not all terminations are legally defensible. Employees who are terminated without proper notice or cause may have grounds for a wrongful dismissal claim.

Constructive dismissal may also arise if a company unilaterally changes core aspects of the job—such as location, pay structure, or schedule—without the employee’s consent.

Employment Contracts: Strengths and Pitfalls

Contracts in the oil and gas sector are often highly detailed and tailored to specific roles. While a well-drafted contract can offer clarity and reduce the risk of dispute, certain clauses are frequently challenged in court.

1. Termination Clauses

Termination clauses must comply with Alberta’s minimum employment standards. Clauses that attempt to contract out of these protections may be rendered unenforceable.

For instance, a clause stating that an employee is entitled to only two weeks’ notice, even after years of service, could be void if it falls below the minimum in legislation or fails to meet common law standards of reasonable notice.

2. Non-Compete and Non-Solicitation Agreements

It is common for employers in Alberta’s oil and gas sector to include restrictive covenants in employment contracts to protect client relationships or proprietary information. However, courts in Alberta are generally reluctant to enforce non-compete clauses unless they are reasonable in scope, geography, and duration.

Non-solicitation clauses prevent former employees from approaching clients or colleagues and are more likely to be upheld, provided they are narrowly drafted.

Overtime, Travel Time, and Remote Work Disputes

Given the remote nature of many oil and gas operations, compensation for travel time, standby hours, and extended shifts is frequently contested. The Employment Standards Code outlines general rules for hours of work and overtime, but many oil and gas roles fall under exceptions or special regulations.

1. When Is Travel Time Compensable?

In many cases, time spent commuting from home to a work site is not considered compensable. However, if an employee is required to report to a designated location and then be transported to a remote site, that time may be deemed compensable under Alberta law.

2. Averaging Agreements

Employers can enter into hours of work averaging agreements to spread overtime calculations over a period of up to 12 weeks. While legal, these agreements must be signed and comply with specific rules. Misuse or misunderstanding of such agreements can result in unpaid overtime claims.

Human Rights and Safety Concerns

Oil and gas work is physically demanding and hazardous, and it can also violate human rights and occupational health regulations.

1. Disability and Addiction-Related Disputes

If an employee is terminated or demoted after disclosing a mental health condition or substance addiction, they may have grounds for a human rights complaint. Alberta employers have a duty to accommodate up to the point of undue hardship, which may include offering modified duties or medical leave.

The Alberta Human Rights Act prohibits discrimination on several protected grounds, including disability, gender, age, and family status.

2. Workplace Harassment and Bullying

Historically, oil and gas workplaces have reputations for being male-dominated and high-pressure environments. This can lead to toxic workplace cultures where harassment or bullying goes unchecked. Employees are protected by both the Occupational Health and Safety Act and Alberta’s human rights legislation.

Unionized Workplaces and Grievance Processes

A significant portion of Alberta’s oil and gas workers are unionized. Unionized employees typically resolve disputes through a grievance and arbitration process outlined in a collective agreement rather than through the courts.

While unions can be effective in defending workers’ rights, not all employees are satisfied with how their grievances are handled. In limited circumstances, employees may bring legal action against a union for failing to represent them fairly, but the threshold for such claims is high.

What to Do If You’re Facing an Employment Dispute

Whether you’re an employee navigating a sudden dismissal or an employer responding to a complaint, early legal advice is crucial. Here are some practical steps to take:

• Review Your Contract: Understand what your rights and obligations are under any written agreement.
• Document Everything: Keep records of emails, conversations, schedules, and any relevant correspondence.
• Seek Legal Counsel Promptly: Delay can affect your options, especially when limitation periods or deadlines apply (e.g., 90 days for some human rights complaints).
• Consider Informal Resolution First: In some cases, issues can be resolved through internal HR processes or mediation before escalating to legal action.

Why Legal Support Is Essential in the Oil & Gas Sector

The legal and regulatory environment in Alberta’s oil and gas industry is complex. Workers may be unsure whether their situation qualifies as a legal dispute, while employers may unintentionally violate employment standards or human rights laws when downsizing or restructuring.

Engaging with an experienced employment lawyer can provide clarity and help both parties avoid costly litigation. Legal support is especially important in high-stakes disputes involving senior employees, complex contracts, or allegations of misconduct.

Understanding and Resolving Oil & Gas Employment Disputes in Alberta

Employment disputes in Alberta’s oil and gas sector are as multifaceted as the industry itself. With so much at stake financially, professionally, and legally, employees and employers must understand their rights and responsibilities. By seeking legal advice early and navigating disputes strategically, parties can often reach fair resolutions without prolonged conflict.

Getz Collins and Associates: Experienced Employment and Oil and Gas Lawyers in Alberta

The complexities of employment law in Alberta’s oil and gas sector require the guidance of knowledgeable legal professionals. Whether you are an employee facing a dispute or an employer seeking to navigate legal obligations, proactive legal advice is essential for a fair resolution.

Getz Collins and Associates is committed to providing modern, client-centric legal services. Our team of oil and gas and employment lawyers offers decades of combined experience, providing strategic legal counsel that combines traditional excellence with modern innovation.

Don’t navigate these high-stakes disputes alone. To schedule a confidential consultation with a member of our team, please contact us online or call 587-391-5600.