Early Childhood Services Regulation

(Consolidated up to 180/2025) ALBERTA REGULATION 126/2022 Education Act EARLY CHILDHOOD SERVICES REGULATION Table of Contents 1 Definitions 2 Application Part 1 Early Childhood Services Programs 3 Application to provide early childhood services program 4 Safety standards 5 Early childhood services program policies 5.1 Access to learning 6 Teachers 7 Records 8 Provision of information 9 Secretary, treasurer and auditor 10 Financial statements 11 Budget 12 Insurance 13 Fidelity bond 14 Kindergarten age of entry Part 2 Independent ECS Operators 15 Definitions 16 Application of Part Financial and Governance Matters 17 Governing body of independent ECS operator 18 Financial and governance policies 19 Transfer of grants 20 Related party agreements Compensation 21 Definition 22 Base salary 23 Bonus, allowance or other incentive pay 24 Benefits 25 Severance pay 26 Senior management contractors Information and Records 27 Publication of information 28 Record retention Compliance 29 Compliance assessment 30 Failure to comply Part 3 Transitional Provisions, Repeal, Expiry and Coming into Force 31 Transitional — salary, benefits and severance 32 Transitional — related party agreements 32.1 Transitional — private ECS operators 33 Repeal 34 Expiry 35 Coming into force Definitions 1 In this Regulation, (a) “ Education Grants Regulation ” means the Ministerial Grants Regulation (AR 215/2022) or the former grant regulation to the extent that it continues to apply pursuant to section 12(2) of the Ministerial Grants Regulation (AR 215/2022); (b) “fiscal year” means the 12‑month period beginning on September 1 and ending on the following August 31; (c) “governing body” means the body responsible for the governance, including the fiscal and organizational governance, of an operator; (c.1) “independent ECS operator” means a society registered under the Societies Act , a non‑profit company registered under Part 9 of the Companies Act or a non‑profit corporation incorporated by or under an Act of the Legislature, other than an independent school, that (i) provides an early childhood services program, and (ii) receives grants under the Education Grants Regulation in respect of the early childhood services program; (d) “kindergarten” means an early childhood services program for the year of instruction immediately prior to grade one that is provided to a child or student; (e) “operator” means (i) a board that provides an early childhood services program, (ii) a person responsible for the operation of an accredited independent school that provides an early childhood services program, or (iii) an independent ECS operator; (f) repealed AR 180/2025 s2; (g) “senior management contractor” means an individual engaged for services by an operator to plan, direct or control the management, administration and operation of an early childhood services program provided by the operator; (h) “senior management employee” means an individual employed by an operator to plan, direct or control the management, administration and operation of an early childhood services program provided by the operator; (i) “senior manager” means a senior management employee or a senior management contractor. AR 126/2022 s1;9/2023;136/2025;180/2025 Application 2 This Regulation applies only (a) in respect of the operation, administration and management of an early childhood services program provided by an operator, and (b) to an operator in its capacity as a board or other person providing an early childhood services program. Part 1 Early Childhood Services Programs Application to provide early childhood services program 3 (1) A person other than a board that wishes to provide an early childhood services program must apply to the Minister for an approval on a form approved by the Minister. (2) The term of an approval is one year. (3) Each year an operator, other than a board, that chooses to continue to provide an early childhood services program must apply to the Minister for an approval on a form approved by the Minister. (4) The Minister may (a) impose any terms and conditions on an approval, and (b) cancel an approval at any time and for any reason. Safety standards 4 An early childhood services program must be provided in a facility that complies with all applicable municipal and provincial public health, safety, fire and building standards. Early childhood services program policies 5 (1) An operator must develop, maintain and review policies with respect to (a) applications for registration, (b) safety for field trips, (c) a health protocol, (d) the evaluation of children, and (e) teacher growth, supervision and evaluation. (2) An operator must ensure that any policies developed, maintained and reviewed by the operator, including the policies referred to in subsection (1) and section 18, are consistent with the policies of the Minister in respect of early childhood services programs. Access to learning 5.1 An operator may not deny a child or student access to an early childhood services program if the child or student does not wear a face mask or other face covering for the primary purpose of preventing or limiting the spread of any communicable disease as defined in the Public Health Act . AR 224/2022 s2;6/2025 Teachers 6 An operator must employ as a teacher only an individual who holds a teaching certificate. Records 7 An operator must keep records in accordance with the Student Record Regulation (AR 97/2019). Provision of information 8 An operator must provide to the Minister any information, including personal information, that the Minister requests. Secretary, treasurer and auditor 9 (1) An operator that is not required to appoint a secretary and a treasurer, or a secretary‑treasurer, under the Act or the Independent Schools Regulation must appoint a secretary and a treasurer, or a secretary‑treasurer, who is not the operator, the chair, a trustee or the president of the organization. (2) An operator that is a board, a person responsible for the operation of an accredited independent school or an independent ECS operator to which Part 2 applies must appoint as auditor a professional accounting firm registered under the Chartered Professional Accountants Act and authorized to perform an audit engagement. (3) The operator must provide to the Minister the contact information of the persons referred to in subsections (1) and (2), as applicable. AR 126/2022 s9;136/2025;180/2025 Financial statements 10 (1) An operator, other than an independent ECS operator to which Part 2 does not apply, must submit to the Minister annually on or before November 30, in a form and manner prescribed by the Minister, the audited financial statements of the operator, including an auditor’s report signed by the auditor, for the fiscal year ending on the August 31 preceding that date. (2) An independent ECS operator to which Part 2 does not apply must submit to the Minister annually on or before November 30, in a form and manner prescribed by the Minister, the financial statements of the operator for the fiscal year ending on the August 31 preceding that date. (3) The Minister may, if the Minister is of the opinion that an auditor’s report is warranted, require an independent ECS operator to which Part 2 does not apply to include an auditor’s report with the operator’s financial statements. (4) The auditor must, in accordance with the CPA Canada Handbook — Assurance , published by the Chartered Professional Accountants of Canada, as amended from time to time, perform the auditor’s examination of and prepare the auditor’s report on the financial statements prepared under this section and submit the report to the operator of the early childhood services program. (5) The following persons must give the auditor access to all records and documents of the operator at all times: (a) the operator; (b) the members of the operator’s governing body; (c) the senior managers and employees of the operator; (d) any person engaged for services by the operator who has access to the records and documents of the operator. (6) The auditor may request from an operator, the members of its governing body, its senior managers and employees and any person engaged for services by the operator any information and explanations that in the auditor’s opinion may be necessary to enable the auditor to report as required by subsection (4). (7) An operator, the members of its governing body, its senior managers and employees and any person engaged for services by the operator must provide to the auditor the information and explanations requested by the auditor under subsection (6). (8) This section does not apply to an independent ECS operator who receives $250 000 or less per fiscal year in grants in the aggregate in respect of all early childhood services programs provided by the independent ECS operator. AR 126/2022 s10;180/2025 Budget 11 (1) An operator other than an independent ECS operator must submit to the Minister annually on or before May 31, in a form and manner prescribed by the Minister, the budget of the operator in respect of the early childhood services program for the fiscal year starting on the September 1 following that date. (2) An independent ECS operator must submit to the Minister annually on or before November 30, in a form and manner prescribed by the Minister, the budget of the independent ECS operator in respect of the early childhood services program for the fiscal year starting on the September 1 preceding that date. AR 126/2022 s11;180/2025 Insurance 12 (1) An operator must keep in force a general liability insurance policy or other form of indemnification in an amount that is not less than $2 000 000 for each occurrence of loss or damage resulting from bodily injury to or the death of one or more persons, and for loss or damage to property, regardless of the number of claims arising from any one occurrence. (2) The policy or other form of indemnification referred to in subsection (1) must provide coverage to the operator for all claims arising from (a) a liability imposed by law on the operator, and (b) a liability assumed under any agreement entered into by the operator. (3) An operator must ensure that in the general liability policy or other form of indemnification referred to in subsection (1) the word “insured” is defined to include (a) the named insured, and (b) any employee, member of the operator’s governing body, agent or other person, whether receiving compensation or not, when acting within the scope of that person’s duties for the named insured. Fidelity bond 13 An operator must maintain a fidelity bond in an amount acceptable to the Minister that covers the operator, the members of its governing body, its senior managers and its employees while carrying out duties relating to any money or security belonging to or held by the operator. Kindergarten age of entry 14 (1) For the purposes of entering kindergarten, a child must be at least 5 years old as of December 31 of the school year in which the child begins kindergarten. (2) For the purposes of subsection (1), an operator must not require that a child attain 5 years of age by a date earlier than December 31 of the school year in which the child begins kindergarten. Part 2 Independent ECS Operators Definitions 15 In this Part, (a) “base salary” means the salary, exclusive of any benefits or other form of compensation, that a senior management employee is paid under a contract of employment; (b) “benefits” means other compensation, in addition to base salary, that is offered, paid or provided in accordance with section 24 to or for the benefit of a senior management employee; (c) “funded independent school” means a funded independent school as defined in the Independent Schools Regulation ; (d) “independent member” means a member of the governing body of an independent ECS operator who (i) is not involved in the day‑to‑day management, administration or operation of the early childhood services program provided by the independent ECS operator, and (ii) is not a related party of another member; (e) “related party”, with respect to an independent ECS operator, means a related party within the meaning of the CPA Canada Handbook — Accounting , published by the Chartered Professional Accountants of Canada, as amended from time to time. AR 126/2022 s15;136/2025;180/2025 Application of Part 16 This Part does not apply to an independent ECS operator who receives $250 000 or less per fiscal year in grants in the aggregate in respect of all early childhood services programs provided by the independent ECS operator. AR 126/2022 s16;180/2025 Financial and Governance Matters Governing body of independent ECS operator 17 (1) More than half of the members of the governing body of the independent ECS operator must be independent members. (2) The proportion of independent members of the governing body of the independent ECS operator must be maintained for quorum. AR 126/2022 s17;180/2025 Financial and governance policies 18 The governing body of an independent ECS operator must develop, maintain and review policies with respect to (a) internal controls, including (i) the segregation of duties, (ii) capital assets, (iii) the reimbursement of expenses, and (iv) investments, (b) the roles and responsibilities of the governing body of the independent ECS operator, (c) the roles and responsibilities of senior managers of the independent ECS operator, (d) conflicts of interest, and (e) matters relating to the compensation of senior managers of the independent ECS operator that are not addressed by this Regulation. AR 126/2022 s18;180/2025 Transfer of grants 19 (1) An independent ECS operator may transfer a grant or a portion of a grant received under the Education Grants Regulation only to (a) the Government of Alberta, (b) a society registered under the Societies Act , a non‑profit company registered under Part 9 of the Companies Act or a non‑profit corporation incorporated by or under an Act of the Legislature, other than an independent school, that (i) provides an early childhood services program, or (ii) provides program support services to an early childhood services program, or (c) a board, the operator of a charter school or the person responsible for the operation of a funded independent school. (2) For greater certainty, a transfer under subsection (1) does not include the use of a grant or a portion of a grant to pay the costs and expenses of managing, administering or operating an early childhood services program. AR 126/2022 s19;136/2025;180/2025 Related party agreements 20 (1) This section applies in respect of (a) an agreement to sell, purchase, lease, mortgage or otherwise acquire or dispose of real property or personal property, or (b) an agreement to engage services, other than an agreement to engage the services of a senior management contractor, that an independent ECS operator enters into or proposes to enter into with a related party for the purposes of managing, administering or operating an early childhood services program. (2) The amount payable under an agreement referred to in subsection (1)(a) for the acquisition by an independent ECS operator of real property or personal property must be at or below fair market value. (3) The amount receivable under an agreement referred to in subsection (1)(a) for the disposition by an independent ECS operator of real property or personal property must be at or above fair market value. (4) The value, including interest, of a mortgage under an agreement referred to in subsection (1)(a) (a) must be at or above fair market value where the independent ECS operator is the lender, and (b) must be at or below fair market value where the related party is the lender. (5) The amount payable under an agreement referred to in subsection (1)(b) must be at or below fair market value. (6) For the purposes of subsections (2), (3) and (4), fair market value must be determined by a person who is designated as an Accredited Appraiser Canadian Institute (AACI) issued by the Appraisal Institute of Canada. (7) For the purposes of subsection (5), fair market value may be determined by the Minister if the Minister is of the opinion that the agreement fails to comply with subsection (5). AR 126/2022 s20;180/2025 Compensation Definition 21 In sections 22 to 27, “senior management employee” includes a member of the governing body of an independent ECS operator who is an employee of the independent ECS operator. AR 126/2022 s21;180/2025 Base salary 22 (1) An independent ECS operator must not offer, pay or provide a base salary to a full‑time senior management employee that is greater than the maximum base salary applicable in respect of a level 2 board under Schedule 1 to the Superintendent of Schools Regulation (AR 98/2019). (2) An independent ECS operator must not offer, pay or provide a base salary to a part-time senior management employee that is greater than the prorated share of the base salary referred to in subsection (1). (3) An independent ECS operator must not offer, pay or provide any type of market modifier to the base salary of a senior management employee. AR 126/2022 s22;180/2025 Bonus, allowance or other incentive pay 23 An independent ECS operator must not offer, pay or provide to a senior management employee a bonus, allowance or other incentive pay in addition to the senior management employee’s base salary. AR 126/2022 s23;180/2025 Benefits 24 (1) In this section, “administrative leave” means an entitlement to a period of temporary paid leave from a job assignment with salary and benefits intact that accrues to a senior management employee in accordance with the senior management employee’s contract of employment. (2) An independent ECS operator may offer, pay or provide benefits to or for the benefit of a senior management employee with respect to (a) employer‑paid contributions to a pension or retirement plan, in accordance with section 2 of Schedule 2 to the Superintendent of Schools Regulation (AR 98/2019), and (b) employer‑paid premiums for health and group insurance benefits, including (i) group insurance for dental, medical and prescription drug expenses, (ii) a health spending account, and (iii) short‑term or long‑term disability benefits. (3) The cost to the employer of the premiums referred to in subsection (2)(b) must not exceed 5% of the senior management employee’s base salary. (4) An independent ECS operator must not offer, pay or provide the following classes of consideration, by whatever name called, to or for the benefit of a senior management employee: (a) administrative leave; (b) executive or private medical benefits or a reimbursement of expenses relating to executive or private medical benefits; (c) gym, fitness or other sports or club memberships or fees or a reimbursement of expenses relating to gym, fitness or other sports or club memberships or fees; (d) housing allowance, the use of accommodation, residences or housing or any reimbursement of expenses relating to housing. AR 126/2022 s24;180/2025 Severance pay 25 (1) In this section, (a) “continuous service” means employment without any interruption in service caused by a termination of that employment; (b) “severance period” means the period starting the day after termination and ending after the number of weeks determined under subsection (3) in respect of which the severance pay is payable. (2) This section applies to a senior management employee whose contract of employment is terminated without cause. (3) Subject to subsection (4), an independent ECS operator may offer, pay or provide severance pay to a senior management employee in an amount not greater than the sum of (a) 4 weeks of the senior management employee’s base salary, and (b) an amount that is equal to the cost to the independent ECS operator for 4 weeks of the benefits the senior management employee was receiving before termination, to a maximum of 16% of the amount referred to in clause (a), for every year of continuous service with the independent ECS operator, to a maximum of 52 weeks of the senior management employee’s base salary. (4) An independent ECS operator must not offer, pay or provide severance pay to a senior management employee unless the senior management employee agrees in writing that if the senior management employee becomes employed by another independent ECS operator to which Part 2 applies, an independent ECS operator to which Part 2 does not apply, a board, a funded independent school or the Crown in right of Alberta during the severance period, the senior management employee will repay the independent ECS operator a portion of that severance pay equal to the amount of base salary, before mandatory statutory deductions and benefits, earned in respect of the senior management employee’s new employment during the severance period, to a maximum of the severance pay, before mandatory statutory deductions, paid in respect of the portion of the severance period for which the senior management employee is employed by the other independent ECS operator, the board, the funded independent school or the Crown in right of Alberta. (5) An independent ECS operator must not offer, pay or provide severance pay, termination pay or separation pay, by whatever name called, to a senior management employee (a) in the event of termination for cause, (b) in the event of the non‑renewal of a contract of employment, (c) on resignation or retirement, or (d) as a direct or indirect result of changes to compensation under this Regulation. AR 126/2022 s25;136/2025;180/2025 Senior management contractors 26 (1) An independent ECS operator must not enter into an agreement to engage the services of a senior management contractor where the fee for service under the agreement is greater than the maximum base salary payable to a senior management employee under section 22. (2) An independent ECS operator must not enter into an agreement to engage the services of a senior management contractor in which the independent ECS operator offers to the senior management contractor a bonus, allowance or other incentive pay in addition to the fee for service under the agreement. (3) An independent ECS operator may offer, pay or provide a termination payment to a senior management contractor under the agreement to engage the services of the senior management contractor in an amount not greater than the sum of (a) an amount equivalent to 4 weeks of the base salary the senior management contractor would have received if the senior management contractor was an employee, and (b) an amount equivalent to the cost to the independent ECS operator for 4 weeks of the benefits the senior management contractor would have received before termination if the senior management contractor was an employee, to a maximum of 16% of the amount referred to in clause (a), for every year that the agreement and any substantially similar agreements between the independent ECS operator and the senior management contractor have been continuously in effect, to a maximum of an amount equivalent to 52 weeks of the base salary the senior management contractor would have received if the senior management contractor was an employee. (4) An independent ECS operator must not enter into an agreement to engage the services of a senior management contractor in which the independent ECS operator offers termination pay to the senior management contractor (a) in the event of termination for a material breach of the agreement by the senior management contractor, or (b) as a direct or indirect result of changes to compensation under this Regulation. AR 126/2022 s26;180/2025 Information and Records Publication of information 27 (1) In this section, “total compensation” means (a) the base salary and benefits payable to a senior management employee in a fiscal year, or (b) the fee for service under an agreement to engage the services of a senior management contractor for a fiscal year. (2) On or before November 30 of each year, an independent ECS operator must make publicly available the following information relating to the fiscal year ending in that year: (a) with respect to the 10 senior managers with the highest total compensation, the number of senior managers in each of the ranges of total compensation determined by the Minister; (b) the financial statements referred to in section 10. (3) An independent ECS operator must make the policies referred to in sections 5 and 18 publicly available before the start of each school year. AR 126/2022 s27;180/2025 Record retention 28 An independent ECS operator must retain each of the following documents or records for a period of at least 6 years after the date on which it is created: (a) the policies referred to in sections 5 and 18; (b) all financial documents and records relating to the management, administration and operation of the early childhood services program. AR 126/2022 s28;180/2025 Compliance Compliance assessment 29 (1) The Minister may require a compliance assessment to be conducted with respect to an independent ECS operator’s compliance with (a) requirements relating directly to funding under the Education Grants Regulation , including program requirements on which such funding is contingent, (b) the policies referred to in sections 5 and 18, and (c) the Act and the regulations. (2) Where the Minister requires a compliance assessment under subsection (1), the independent ECS operator must retain as auditor a professional accounting firm registered under the Chartered Professional Accountants Act and authorized to perform an audit engagement to perform the compliance assessment. (3) The auditor must, in accordance with the CPA Canada Handbook — Assurance , published by the Chartered Professional Accountants of Canada, as amended from time to time, prepare a report with respect to the compliance assessment. (4) The following persons must give the auditor access to all records and documents of the independent ECS operator at all times for the purposes of the compliance assessment: (a) the independent ECS operator; (b) the members of the independent ECS operator’s governing body; (c) the senior managers and employees of the independent ECS operator; (d) any person engaged for services by the independent ECS operator who has access to the records and documents of the independent ECS operator. (5) The auditor may request from an independent ECS operator, the members of its governing body, its senior managers and employees and any person engaged for services by the independent ECS operator any information and explanations that in the auditor’s opinion may be necessary to enable the auditor to report as required by subsection (3). (6) An independent ECS operator, the members of its governing body, its senior managers and employees and any person engaged for services by the independent ECS operator must provide to the auditor the information and explanations requested by the auditor under subsection (5). (7) After preparing a report under subsection (3), the auditor must submit the report to the Minister. AR 126/2022 s29;180/2025 Failure to comply 30 (1) Where, based on a report under section 29 or on other reasonable grounds, the Minister is of the opinion that an independent ECS operator has failed to comply with any requirements relating directly to funding under the Education Grants Regulation , including program requirements on which such funding is contingent, the policies referred to in section 5 or 18, the Act or the regulations, the Minister may impose a probationary period on the independent ECS operator, during which time the Minister may (a) require ongoing monitoring for compliance, (b) refuse to pay a grant or a portion of a grant under the Education Grants Regulation to the independent ECS operator, (c) require an independent ECS operator to repay a grant or a portion of a grant received under the Education Grants Regulation , (d) cancel the independent ECS operator’s approval to provide the early childhood services program, or (e) take any other action the Minister considers necessary to ensure compliance. (2) Before imposing a probationary period under subsection (1) or taking any action referred to in subsection (1)(a) to (e), the Minister must provide written notice to the independent ECS operator of the probationary period or the proposed action. AR 126/2022 s30;180/2025 Part 3 Transitional Provisions, Repeal, Expiry and Coming into Force Transitional — salary, benefits and severance 31 (1) Where an individual is a senior manager on the coming into force of this section and continues in the same position in the same contract of employment or agreement to engage services, then the senior manager’s contract or agreement that is in effect on the coming into force of this section remains in effect, even if a term of the contract or agreement is inconsistent with sections 22 to 26. (2) A contract or agreement referred to in subsection (1) that is renewed on or after the coming into force of this section must comply with sections 22 to 26. (3) A contract or agreement referred to in subsection (1) that is in effect 2 years after the date on which this section comes into force must comply with sections 22 to 26 as of that date. (4) Notwithstanding subsection (3), the Minister may extend the time by which a contract or agreement referred to in subsection (1) is required to comply with sections 22 to 26. Transitional — related party agreements 32 (1) Where a private ECS operator has entered into an agreement with a related party to which section 20 applies to sell, purchase, lease, mortgage or otherwise acquire or dispose of real property or personal property and the agreement is in effect on the coming into force of this section, the agreement remains in effect, even if the agreement does not comply with section 20. (2) Where a private ECS operator has entered into an agreement to engage services with a related party to which section 20 applies and the agreement is in effect on the coming into force of this section, the agreement remains in effect, even if the agreement does not comply with section 20. (3) An agreement referred to in subsection (1) or (2) that is renewed on or after the coming into force of this section must comply with section 20. (4) An agreement referred to in subsection (1) that is in effect on the date 5 years after the coming into force of this section must comply with section 20 on and after that date. (5) An agreement referred to in subsection (2) that is in effect on the date 2 years after the coming into force of this section must comply with section 20 on and after that date. (6) Notwithstanding subsections (4) and (5), the Minister may extend the time by which an agreement referred to in subsection (1) or (2) is required to comply with section 20. Transitional — private ECS operators 32.1 A private ECS operator approved to provide an early childhood services program under this Regulation as it read immediately before the coming into force of this section and whose approval has not been cancelled when this section comes into force is deemed to be an independent ECS operator approved to provide an early childhood services program under this Regulation for the remainder of the term of that approval. AR 180/2025 s21 Repeal 33 The Early Childhood Services Regulation (AR 87/2019) is repealed. Expiry 34 For the purpose of ensuring that this Regulation is reviewed for ongoing relevancy and necessity, with the option that it may be repassed in its present or an amended form following a review, this Regulation expires on August 31, 2027. Coming into force 35 (1) This Regulation, except sections 17, 18 and 27, comes into force on the coming into force of section 4(2) of the Red Tape Reduction Statutes Amendment Act, 2022 . (2) Section 27(1) and (2) come into force on September 1, 2023. (3) Sections 17, 18 and 27(3) come into force on September 1, 2024.