Hi there! We have a piece on Automobile Use by Employees, a Company Vehicle Use policy, and a Business Travel Policy available. We also have a Car Allowance Policy and different tools and checklists available regarding different aspects of personal vehicle use for work, such as dash cam use and GPS use – search our site or use our built in chat feature to explore everything we have to offer. Below are what laws apply in Alberta and the Northwest Territories and a sample checklist per your request –

Workers’ compensation (AB and NWT)
Alberta: WCB coverage can apply during work-related travel when travel is directed/controlled by the employer or is an expected duty.
NWT: employers generally fall under the WSCC system (Workers’ Safety and Compensation Commission).
Why it matters: collisions/injuries during work driving can trigger reporting/claims processes and affect employer obligations.

Traffic / motor vehicle laws (AB and NWT)
Drivers must comply with licensing, registration, and rules of the road in the jurisdiction where they drive (e.g., Alberta traffic law; NWT Motor Vehicles Act).
CanLII

Mandatory automobile insurance requirements
Alberta minimum third-party liability requirement is $200,000 (basic coverage required by law).
NWT mandatory auto insurance includes $200,000 third-party liability and required additional coverages.

Tax rules (CRA) for mileage/allowances
The CRA has specific rules on when an automobile allowance is non-taxable vs taxable, and what counts as a “reasonable” per-kilometre allowance.

Privacy law (especially if you collect driver abstracts/insurance)
Alberta: PIPA governs private-sector collection/use/disclosure of personal information.
NWT: privacy laws apply depending on your structure; if you are not a public body, the privacy regime may differ—but the general best practice still applies (minimize collection, secure storage, limited access/retention).

Employment standards (expense reimbursement)
For most charities, employment standards are provincial/territorial (not federal). Canada Labour Code expense reimbursement rules apply only if you are federally regulated (e.g., banking, telecom, interprovincial transportation, etc.).
Even where not legally mandated, it’s still a strong risk-control practice to have a clear reimbursement approach.

Compliance checklist
Policy & governance

☐ Written PVUW policy approved and communicated (scope excludes normal commuting; defines “work driving”)

☐ Role-based criteria for who may drive (frequency thresholds, approval authority)

☐ Disciplinary/non-compliance language included

☐ Annual review cycle assigned to a role

Driver qualification & monitoring

☐ Valid licence verified before first authorization and at least annually

☐ Process to capture and act on: suspensions, major offences, collisions

☐ Optional: driver abstract consent + review process (and criteria for restrictions)

Vehicle condition

☐ Minimum vehicle standards documented (maintenance, tires, lights, etc.)

☐ Proof of registration kept on file

☐ Required safety gear defined for your operations (winter kit where needed)

Insurance

☐ Proof of insurance on file (meets AB/NWT minimums)

☐ Written requirement that drivers disclose business use to their insurer

☐ Broker consult re: non-owned auto liability and appropriate limits

Safety controls (OHS integrated)

☐ Driving hazard assessment completed (weather, remoteness, night driving, fatigue)

☐ Rules: seatbelts, impairment, distraction, speed, weather stop-work authority

☐ Incident reporting process (collision/near miss) and investigation template

☐ Training/refreshers (winter driving / defensive driving where appropriate)

Workers’ compensation & incident response

☐ Clear guidance on WCB/WSCC reporting when an injury occurs during work travel

☐ Post-incident process includes medical attention, reporting, documentation, corrective actions

Reimbursement & tax compliance

☐ Mileage/expense rate and eligible expenses documented

☐ Claim form/log requires: date, purpose, start/end, km, receipts

☐ CRA compliance check: allowance structure aligns with CRA conditions for non-taxable treatment
Canada

☐ Record retention period set (finance + audit needs)

Privacy & records management

☐ Privacy notice/consent language for driver abstracts and insurance documents (AB PIPA considerations)
OIPC Alberta

☐ Secure storage + access controls + retention/destruction schedule

I hope this helps!
-HRInsider Staff

Because there are different types of car insurance and liabilities. If an employee is using a vehicle on a work site or for work purposes, their company may be the one footing the bill. It can also affect the kilometres driven and what the car is used for, increasing or decreasing rates.