Public Sector Employers Act

PUBLIC SECTOR EMPLOYERS ACT Chapter P‑40.7 Table of Contents 1 Interpretation 2 Application 3 Directives to employers 3.1 Compensation policies 3.2 Compensation plans 3.3 Employer committees 3.4 Employer associations 3.5 Public Sector Employers’ Council 3.6 Compliance reports 3.7 Audit 3.8 Overpayments by employers 3.9 Non‑compliant contract provisions 3.91 Prohibitions, offences and penalties 4 Confidentiality 5 Paramountcy 6 Crown not employer 6.1 Existing employee or member 6.2 New appointment, change in position or renewal or extension 6.3 No constructive dismissal or breach of contract 6.4 No cause of action 6.5 No entitlement to compensation 8 Lieutenant Governor in Council regulations Preamble WHEREAS public sector compensation is the largest government expenditure, constituting over half of the Government of Alberta’s operating expense; WHEREAS the Government of Alberta is committed to preserving and protecting public services for Albertans, and fiscal restraint in compensation is key to achieving this objective; WHEREAS the Government of Alberta is committed to achieving a balance between the autonomy of public sector employers and the Province’s accountability for fiscal oversight and the effectiveness and efficiency of public services; and WHEREAS the Government of Alberta respects the importance of the collective bargaining process: Interpretation 1 (1) In this Act, (a) “chief executive officer” means the highest ranking executive of an employer or employer association who has primary responsibility for overseeing the day‑to‑day operations of the employer or employer association; (a.1) “compensation” means any consideration or remuneration, regardless of its nature or form, including, without limitation, salary, retainers, benefits, bonuses, allowances, travelling and living expenses, honorariums and severance pay, paid or payable or provided, directly or indirectly, to or for the benefit of a person who performs duties and functions that entitle the person to be paid; (a.2) “employer” means any of the following entities or a subsidiary of the following entities: (i) a public post‑secondary institution as defined in the Post‑secondary Learning Act ; (ii) a board as defined in the Education Act ; (iii) a board as defined in the Northland School Division Act ; (iv) a Francophone regional authority as defined in the Education Act ; (v) a society or company that operates a charter school as defined in the Education Act ; (vi) a provincial health agency, regional health authority or provincial health corporation under the Provincial Health Agencies Act ; (vii) a public agency as defined in the Alberta Public Agencies Governance Act ; (viii) an entity that receives funding from the Crown to provide a public service as prescribed by the regulations; (a.3) “employer association” means an association of employers established under section 3.4; (a.4) “employer committee” means an association of employers established under section 3.3; (a.5) “member” means (i) in respect of a public agency that is a corporation, a member of the public agency or its board, council or other governing body, and (ii) in respect of a public agency that is an unincorporated body, a member of the public agency; (b) “Minister” means the Minister determined under section 16 of the Government Organization Act as the Minister responsible for this Act; (c) repealed 2023 c12 s3; (d) “related process” includes any statutory process or other process agreed to by the employer and bargaining agent respecting possible changes to the terms of a collective agreement. (2) For employers who are subject to the Public Service Employee Relations Act , “bargaining agent”, “collective agreement” and “collective bargaining” mean “bargaining agent”, “collective agreement” and “collective bargaining” within the meaning of the Public Service Employee Relations Act . (3) For employers who are subject to the Labour Relations Code , “bargaining agent”, “collective agreement” and “collective bargaining” mean “bargaining agent”, “collective agreement” and “collective bargaining” within the meaning of the Labour Relations Code . 2019 cP-40.7 s1;2023 c12 s3;2024 c10 s37;2024 c16 s22 Application 2 This Act does not apply to collective bargaining under, or a collective agreement under, the Public Education Collective Bargaining Act or a related process. Directives to employers 3 (1) The Minister may issue directives (a) that an employer must follow before, during and after engaging in collective bargaining or a related process, (b) that an employer must follow respecting compensation for employees who are not subject to collective agreements, (c) that an employer or the Crown must follow respecting compensation for members, (d) that an employer committee must follow in respect of its purposes under section 3.3, and (e) that an employer association must follow in respect of its purposes under section 3.4. (2) Directives issued by the Minister under this section may include directives (a) respecting the term of a collective agreement an employer may propose or agree to, (b) respecting fiscal limits the employer must operate within when engaging in collective bargaining or a related process, (b.1) respecting compensation provided to an employee not subject to a collective agreement, (b.2) respecting compensation provided to a member, (c) specifying information an employer must provide to the Minister, including (i) information respecting compensation data and related information, (ii) information respecting employment and labour market data and related information, (iii) information for the purpose of monitoring compliance by the employer with directives issued by the Minister, and (iv) any other information the Minister considers necessary respecting collective bargaining or a related process as set out in the directive, and (d) respecting the steps to be taken by an employer for the purpose of confirming compliance with directives issued by the Minister under this section. (3) A directive may be general or particular in its application. (4) A directive may provide for (a) the form and manner in which the directive is to be complied with, and (b) the time within which the directive is to be complied with. (4.1) A directive is effective as of the date or dates specified in the directive. (5) The Regulations Act does not apply with respect to directives issued by the Minister under this section. 2019 cP-40.7 s3;2023 c12 s4 Compensation policies 3.1 (1) The Minister, by order, may establish public sector compensation policies that an employer must follow with respect to employees who are not subject to collective agreements. (2) The Minister, by order, may establish public sector compensation policies that an employer or the Crown must follow with respect to members. (3) Public sector compensation policies may be general or specific and may apply to one or more employers. (4) A public sector compensation policy is effective as of the date or dates specified in the policy. 2023 c12 s5 Compensation plans 3.2 (1) The Minister, by order, may require an employer to submit compensation plans respecting the compensation of employees who are not subject to a collective agreement for approval in a form and on the timelines determined by the Minister. (2) The Minister, by order, may require an employer committee or employer association to submit compensation plans respecting the compensation of employees who are not subject to a collective agreement, applicable to 2 or more of the employers represented by the employer committee or employer association, in a form and on the timelines determined by the Minister. (3) The Minister may make regulations respecting compensation plans, including respecting the information to be included in compensation plans, and the relationship between compensation plans submitted by an employer and compensation plans submitted by an employer committee or employer association that are applicable to the same employer. (4) Where compensation plans are not approved, the Minister may make directives for the amendment of the plan and for its resubmission to the Minister for approval. (5) Approved compensation plans submitted by an employer are binding on the employer, approved compensation plans submitted by an employer committee or employer association are binding on the employer to which the compensation plan is applicable and neither plan may be amended without the Minister’s approval. (6) An approved compensation plan is effective as of the date or dates specified in the plan. 2023 c12 s5 Employer committees 3.3 (1) The Minister, by order, may establish one or more employer committees. (2) The Minister, by order, may (a) designate the employers represented by the employer committee, (b) designate the method by which members of the employer committee are to be determined, (c) designate the method for selecting a chair, vice‑chair and other executive members of the employer committee, (d) set a deadline within which the employer committee must hold its first meeting, and (e) provide for a government representative on the committee. (3) The purposes of an employer committee, with respect to the employers represented by the committee, are to (a) collect and share compensation data or information related to collective bargaining, (b) coordinate collective bargaining, and (c) develop, support and monitor the implementation of compensation and bargaining strategies. (4) The Financial Administration Act , the Alberta Public Agencies Governance Act , the Sustainable Fiscal Planning and Reporting Act and the Auditor General Act do not apply to employer committees. 2023 c12 s5 Employer associations 3.4 (1) The Minister, by order, may establish one or more employer associations. (2) An employer association is a corporation. (3) The Minister, by order, may (a) determine the capacity and, subject to this Act, the rights, powers and privileges of an employer association, (b) designate the employers represented by the employer association, (c) designate the method by which members of the board of directors of the employer association are to be determined, which may include designating the members of the board of directors and providing for representation of the government on the board of directors, (d) designate the method for selecting a chair, vice‑chair and other executive members of the board of directors, (e) set a timeline within which the board of directors must (i) hold its first meeting, and (ii) forward proposed bylaws to the Minister for approval, in accordance with subsection (7), and (f) determine any additional governance requirements for the employer association or the method by which such governance requirements are to be determined, which may include requirements or rules with respect to (i) conflicts of interest, (ii) remuneration for members of the board of directors, (iii) term limits for members of the board of directors, (iv) the management of vacancies on the board of directors, (v) reporting and audit requirements, and (vi) the committee structure for the board of directors. (4) The purposes of an employer association are (a) to coordinate, with respect to the employers it represents, (i) compensation for employees who are not subject to collective agreements or members, (ii) collective bargaining, (iii) human resource practices, and (iv) other matters related to labour relations or human resources that the employers consider appropriate, (b) to consult with representatives of employees of employers the employer association represents, and (c) to assist the employers it represents in carrying out any directives or compensation policies established by the Minister applicable to those employers. (5) Every employer association must (a) have a properly constituted board of directors and bylaws for the governance of the employer association and policies for the administration and management of the employer association, (b) make provision for the representation of the government on the board of directors of the association, subject to an order referred to in section 3.4(3)(c), (c) make provision to levy fees and assessments from its members for the purposes referred to in subsection (4), (d) determine the fiscal year for the association, (e) comply with any directives made by the Minister, and (f) provide to the Minister, on request, copies of contracts of employment relating to persons who are employed by the association and who are not subject to a collective agreement. (6) An employer association may bargain collectively on behalf of an employer in accordance with the Labour Relations Code if authorized to do so by the employer. (7) Despite any other Act, bylaws of the employer association are not effective until approved by the Minister. (8) If there is a conflict between this Act or the order establishing an employer association and the bylaws of the employer association, this Act and the order prevail. (9) The Financial Administration Act , the Alberta Public Agencies Governance Act , the Sustainable Fiscal Planning and Reporting Act and the Auditor General Act do not apply to employer associations. (10) Employer associations shall not borrow money for any purpose. 2023 c12 s5 Public Sector Employers’ Council 3.5 (1) The Minister, by order, may establish a Public Sector Employers’ Council consisting of representatives from government and from employers, employer committees or employer associations, as determined by the Minister. (2) The Public Sector Employers’ Council shall (a) at the Minister’s request, advise the Minister or consult with the Minister respecting any matter determined by the Minister, and (b) perform any duty or function assigned to the council by the Minister. 2023 c12 s5 Compliance reports 3.6 (1) The Minister may issue directives (a) requiring employers, employer committees or employer associations to submit to the Minister reports concerning compliance with directives, compensation policies or approved compensation plans, and (b) providing for the information, including personal information, to be contained in those reports. (2) Each report submitted (a) by an employer must include a statement signed by the chief executive officer attesting to whether the employer has complied with any applicable directive, compensation policy or approved compensation plan, and (b) by an employer committee or association must include a statement signed by the chair of the employer committee or association attesting to whether the employer committee or association has complied with any applicable directive. 2023 c12 s5 Audit 3.7 (1) The Minister may audit or appoint an auditor to audit the records of an employer to determine whether the employer is complying with this Act. (2) An employer shall (a) cooperate fully with the person performing an audit under this section, and (b) disclose to the person performing the audit information, including personal information, required for the purpose of determining whether the employer is complying with this Act. (3) An auditor appointed under subsection (1) shall submit the results of the audit to the Minister within the time specified by the Minister in the appointment. 2023 c12 s5 Overpayments by employers 3.8 (1) Any compensation provided by an employer to an employee or member in excess of what is authorized under this Act is an overpayment. (2) The Minister may give an employer notice in writing stating that it has been determined that the employer has made an overpayment and requiring the employer to pay an amount not exceeding the amount of the overpayment to the Crown within the time specified in the notice. (3) If an employer fails to pay to the Crown the amount specified in the notice under subsection (2) within the time specified in the notice, the amount is deemed to be a debt due to the Crown. (4) The Minister may recover the debt due to the Crown created by subsection (3) from the employer (a) by reducing the amount of any future grant or transfer payment from the Crown to the employer or reducing the amount payable under any other funding arrangement between the Crown and the employer, or (b) by any remedy or procedure available to the Crown by law to enforce the payment of a debt. (5) An employer shall endeavour to minimize any impact of the application of this section on its provision of services to the public. 2023 c12 s5 Non‑compliant contract provisions 3.9 Any provision in a contract between an employer or the Crown and an employee not subject to a collective agreement or a member that authorizes or requires an amount to be paid that is greater than the amount authorized under this Act, or that is otherwise inconsistent with a directive, approved compensation plan or compensation policy issued or approved under this Act, is void and unenforceable to the extent that it is not in accordance with the relevant directive, compensation plan or compensation policy. 2023 c12 s5 Prohibitions, offences and penalties 3.91 (1) No person who is required under this Act to provide a report or statement shall (a) fail to provide a report or statement, or (b) make a false report or statement. (2) No person shall interfere or attempt to interfere with a person performing an audit under section 3.7. (3) No person shall authorize the provision of compensation to an employee or member that is inconsistent with this Act. (4) Every person, other than a person referred to in subsection (5), who contravenes subsection (1) or (2) is guilty of an offence and liable, (a) in the case of an individual, to a fine not exceeding $5000, or (b) in the case of a corporation, to a fine not exceeding $25 000. (5) Every person who wilfully contravenes subsection (1), (2) or (3) is guilty of an offence and liable, (a) in the case of an individual, to a fine not exceeding $10 000, or (b) in the case of a corporation, to a fine not exceeding $50 000. 2023 c12 s5 Confidentiality 4 (1) A directive issued by the Minister under this Act is confidential and may not be disclosed by the employer to any third party without prior consent of the Minister. (2) Information provided to the Minister by an employer pursuant to a directive issued under this Act is confidential and, subject to the regulations, may only be disclosed by the Minister to another employer, an employee of a department or a member of Executive Council as the Minister considers necessary for the administration of this Act. (3) Information provided to another employer, an employee of a department or a member of Executive Council under subsection (2) is confidential and, subject to the regulations, may not be disclosed to a third party without the prior consent of the Minister. Paramountcy 5 (1) The provisions of this Act prevail to the extent of any inconsistency or conflict with one or more provisions of any other enactment except the Access to Information Act and the Health Information Act. (2) Without limiting the generality of subsection (1), any enactment that authorizes an employer to prescribe, set, approve or otherwise fix compensation, by regulation or otherwise, in respect of an employee or member is subject to this Act. 2019 cP-40.7 s5;2023 c12 s6;AR 141/2025 Crown not employer 6 Nothing in this Act makes the Crown an employer of a person of whom the Crown is not otherwise an employer. Existing employee or member 6.1 (1) In this section and section 6.2, (a) “compensation arrangement” means the provisions, however established, for the determination and administration of compensation for employees who are not subject to a collective agreement; (b) “relevant date” means, with respect to an employee or member, the date referred to in subsection (2)(a) or (b) that pertains to the employee or member. (2) Where a person (a) is an employee or member on the effective date of an applicable compensation policy, directive or approved compensation plan, or (b) is an employee or member on the date that an existing compensation policy, directive or approved compensation plan becomes applicable to the employee or member, and continues in the same position under the same contract, agreement or appointment, the following applies: (c) subject to clause (d), the employee’s or member’s compensation arrangement that is in effect immediately before the relevant date remains in effect, even if an element of compensation is greater than that authorized under, or is otherwise inconsistent with, the applicable compensation policy, directive or approved compensation plan; (d) any increase in an element of compensation that is provided for in the compensation arrangement but that has not been implemented on or before the relevant date is not valid or payable to the extent that it is inconsistent with the applicable compensation policy, directive or approved compensation plan. (3) Despite subsection (2)(c), on and after the 2nd anniversary of the relevant date, any element of compensation in the compensation arrangement of an employee or member described in subsection (2) that is greater than that authorized under or that is otherwise inconsistent with the applicable compensation policy, directive or approved compensation plan is not valid or payable to the extent that it is inconsistent with the applicable compensation policy, directive or approved compensation plan. (4) If a compensation policy, directive or approved compensation plan that applies to an employee or member is amended to reduce an element of compensation provided for in a compensation arrangement that is in effect on the effective date of the amendment and the employee or member continues in the same position under the same contract, agreement or appointment, that amendment does not apply to the employee or member until the 2nd anniversary of the effective date of that amendment, but any increase in an element of compensation that is provided for in the compensation arrangement that has not been implemented on or before the effective date of that amendment is not valid or payable to the extent that it is inconsistent with the amended compensation policy, directive or approved compensation plan. 2023 c12 s7 New appointment, change in position or renewal or extension 6.2 For greater certainty, a person’s compensation arrangement must not provide for compensation greater than that authorized in the applicable compensation policy, directive or approved compensation plan if (a) the person begins a position to which a compensation policy, directive or approved compensation plan applies after the effective date of that compensation policy, directive or approved compensation plan, or (b) the person’s contract, agreement or appointment is extended or renewed effective after the effective date of the applicable compensation policy, directive or approved compensation plan or, in the case of an existing compensation policy, directive or approved compensation plan becoming applicable to that person, after the date on which the compensation policy, directive or approved compensation plan becomes applicable to that person. 2023 c12 s7 No constructive dismissal or breach of contract 6.3 Neither the application of this Act nor changes to the compensation that is payable to an employee or member because of this Act shall be considered constructive dismissal or breach of contract. 2023 c12 s7 No cause of action 6.4 (1) No cause of action or proceeding, either in law or in equity, lies or shall be commenced against the Crown or any of its ministers, agents, appointees or employees, against an employer or any of its officers, employees or members, against an employer association or any of its officers, employees or members or against an employer committee or any of its officers or members (a) as a direct or indirect result of the enacting, amending or repealing of any provision of this Act, or (b) as a direct or indirect result of anything done or omitted to be done in order to comply with this Act, including any denial or reduction of compensation that would otherwise have been payable to any person. (2) Without limiting the generality of subsection (1), that subsection applies to an action or proceeding in contract, restitution, tort, trust, fiduciary obligation or otherwise claiming any remedy or relief, including (a) specific performance, injunction or declaratory relief, and (b) any form of damages or a claim to be compensated for any losses, including loss of earnings, loss of revenue or loss of profit. 2023 c12 s7 No entitlement to compensation 6.5 Despite any other Act or law, no person is entitled to be compensated for any loss or damages, including loss of expected earnings or denial or reduction of compensation that would otherwise have been payable to any person, arising from the application of this Act or anything done in accordance with this Act. 2023 c12 s7 7 Repealed 2023 c12 s8. Lieutenant Governor in Council regulations 8 (1) The Lieutenant Governor in Council may make regulations (a) defining, for the purposes of this Act, any word or expression used but not defined in this Act; (a.1) prescribing entities as employers for the purposes of this Act; (a.2) amending the name or the description of an entity prescribed under clause (a.1); (a.3) exempting an employer, in whole or in part, from all or any part of this Act; (b) respecting the collection, use and disclosure of information, including personal information; (c) respecting any other matter necessary to carry out the purpose of this Act. (2) For the purposes of a regulation made under subsection (1)(a.1), the Lieutenant Governor in Council may only prescribe an entity that receives funding from the Crown to provide a public service as an employer. (3) The Lieutenant Governor in Council may make regulations respecting the transition to this Act of anything in force under the Reform of Agencies, Boards and Commissions Compensation Act immediately before this section comes into force. (4) The Regulations Act does not apply with respect to (a) a directive issued to an employer under section 3, (b) an order issued under section 3.1(1) or (2) establishing a public sector compensation policy, (c) an order issued under section 3.2(1) or (2) or a directive issued under section 3.2(4) respecting a compensation plan, or (d) a directive issued under section 3.6(1) respecting a compliance report. 2019 cP-40.7 s8;2023 c12 s9 Schedule Repealed 2023 c12 s10.