Indemnity protection for employees directive

Overview

The directive describes the Indemnity (PDF, 198 KB) against costs arising from legal action brought against employees and/or former employees. The directive describes who is eligible for an indemnity, the conditions under which an indemnity will apply, what the indemnity consists of and the processes that an employee must follow.

Information about the indemnity for bargaining unit employees is provided in the Collective Agreement:

• Letter of Understanding #8 – Legal Fees
• Letter of Understanding #9 – Legal Indemnification

This directive is for administration purposes only. The legal authorities for this directive are listed below in the Authority section of this directive.

What is the indemnity?

The Indemnity (PDF, 198 KB) is granted by the Provincial Treasurer with the approval of Treasury Board. The Indemnity is created pursuant to Section 2 of Order in Council 668/92 (PDF, 103 KB). The Terms and Conditions of the Indemnity are contained in the Appendix to O.C. 668/92 (PDF, 94 KB). Reviewing these legal documents will assist you in understanding how they relate to one another.

Who is covered by the indemnity?

Employees, their heirs and legal representatives are eligible to be indemnified if they are:

• an employee of the Crown, for acts undertaken in the course of their employment
• a former employee of the Crown, for acts undertaken in the course of their employment
• an employee or former employee for acts undertaken at the request of the Crown and if they meet the Conditions for the Indemnity identified below.

What does the indemnity cover?

The Indemnity covers reasonable legal fees and other costs, charges and expenses, including monetary penalties and amounts paid to settle or satisfy judgements which will be paid by your department if you qualify – see Order in Council 668/92 (PDF, 103 KB). Reasonable legal fees will be determined in consultation with Alberta Justice.

Conditions for the indemnity

Your department must establish that the following conditions are present in order for the Indemnity to apply to you. See Order in Council 668/92 (PDF, 103 KB).

General condition for any Indemnity

You must have acted honestly and in good faith with a view to the best interest of the public.

Conditions for criminal cases, administrative actions or proceedings enforceable by a monetary penalty

You must have had reasonable grounds for believing that your conduct was lawful.

Conditions for civil cases

You must comply with the Terms and Conditions for an Indemnity (PDF, 94 KB), which is an appendix to O.C. 668/92.

What process do you follow?

If you are notified that you are going to be sued or charged with an offence arising from your employment, contact Human Resources in your department immediately. Human Resources will contact Alberta Risk Management to determine whether your situation is covered by the risk management fund. They will also assist you in contacting Alberta Justice. Together they will advise you on issues like your eligibility for an indemnity, your responsibilities, the process involved and, where appropriate, hiring legal counsel.

About this directive