Changes to Alberta's Public Sector Employers Act

At a glance

• Alberta’s Public Sector Employers Amendment Act introduced significant changes to the governance and compensation policies for public sector employers in Alberta.
• T he Minister of the Treasury Board and Finance (Minister) now has authority over compensation for non-unionised employees and board members, not just unionised employees.
• The definition of public sector employers now includes public post-secondary institutions, charter schools, public agencies, and entities funded by the Crown.
• The Minister can establish compensation policies and plans for non-unionised employees and public agency members, replacing the previous framework.
• The Minister can create committees and associations to coordinate compensation, collective bargaining, and Human Resources (HR) practices.
• A transition period is established to move from Reform of Agencies, Boards and Commissions Compensation Act (RABCCA) to Public Sector Employers Act (PSEA), with interim guidelines and limits on executive compensation.

Alberta’s Public Sector Employers Amendment Act (proclaimed on 22 December 2023) introduced significant changes to the governance and compensation policies for public sector employers in Alberta. This legislation repealed the Reform of Agencies, Boards and Commissions Compensation Act (RABCCA), and amended the existing Public Sector Employers Act (PSEA). A summary of the key amendments is provided below.

Expanded Ministerial authority

One of the most notable changes brought to PSEA is the expansion of Ministerial authority. Previously, Ministerial Directives issued under PSEA only related to unionised employees. With the changes brought in December of 2023, the Minister has expanded authority to issue Ministerial Directives respecting compensation provided to non-unionised employees and board members of public sector employers under PSEA (Employers).

Expanded definitions and scope

The amendments brought to PSEA broaden the definitions and scope of key terms. By expanding the definition of Employers, PSEA now applies to public post-secondary institutions, societies and companies operating charter schools as defined in the Education Act, public agencies as defined in the Alberta Public Agencies Governance Act and entities receiving funding from the Crown to provide public services as prescribed by the regulation.

Compensation policies and compensation plans

Previously, RABCCA established a compensation framework for designated executives of public agencies. PSEA replaces the compensation framework model with Ministerial Directives and Ministerial Orders.

PSEA allows the Minister to establish public sector compensation policies respecting non-unionised employees, and directors and members of incorporated and unincorporated public agencies. Compensation policies established by the Minister under PSEA may be general or specific and may apply to one or more Employers.

PSEA also allows the Minister to issue Ministerial Orders requiring Employers to submit compensation plans respecting compensation of non-unionised employees, for the Minister’s approval. The Minister may make regulations respecting compensation plans and may issue Ministerial Directives to amend compensation plans. Once approved by the Minister, compensation plans are binding on Employers.

Employer committees and employer associations

PSEA allows the Minister to establish, by Ministerial Order, one or more Employer Committees and Employer Associations.

Employer Committees

Employer Committees are created by Ministerial Order to collect and share compensation data or information related to collective bargaining, coordinate collective bargaining, and develop, support and monitor the implementation of compensation and bargaining strategies. The Minister may designate the Employers represented by such Employer Committees and the methods of selecting the Employer Committee chair, vice chair, and other executives. The Minister may also provide for a government representative on an Employer Committee and may issue Ministerial Directors to an Employer Committee.

Employer Associations

Employer Associations are also created by Ministerial Order. The purpose of Employer Associations is to coordinate compensation of non-unionised, collective bargaining, human resource practices and other labour relations and human resources matters, and to consult with employee representatives. The Minister may issue Ministerial Orders to determine the capacity of Employer Associations, designate Employers represented by the Employer Associations, establish rules regarding boards of directors of Employer Associations and other procedural and governance matters, such as conflict of interest requirements and remuneration for members of an Employer Association’s board of directors.

Employer Associations must have properly constituted boards of directors, bylaws and policies. They must make provisions for the Government of Alberta representation on their boards of directors and comply with any Ministerial Directives issued to the Employer Associations.

Transition from RABCCA to PSEA

Ministerial Order 49/2023 establishes a transition period while a new compensation framework is being developed under PSEA. During the transition period, the parameters set out in RABCCA continue to be in effect. Ministerial Order 16/2025 establishes the interim compensation framework and sets maximum limits on compensation of designated executives of public agencies subject to RABCCA. Ministerial Guidelines established by Ministerial Order 05/2021, as amended by subsequent Ministerial Orders, also continue to be in effect during the transition period to PSEA.