Author: Supriya Chadha

An employment contract is a document that lays down the terms of employment between the Employer and his/her Employee. It is a very important document both for the employer as well as the employee. These contracts can be in writing or verbal. If there is no written employment contract between the employer and the employee, then their relationship is governed by an implied verbal employment agreement. In the absence of a written employment contract, there are issues that may cause confusion or problems later in the employer and employee relationship.  However, the employee is still entitled to the minimum protections available under the Employment Standards Act, the Labour Relations Act and the Occupational Health and Safety Act. These statutes establish some basic conditions of the employer-employee relationship, such as an employee’s minimum wage, maximum hours of work and minimum notice for dismissal. The Employer- Employee relationship is also affected by common law rules, including rules dealing with unfair bargaining power and an employee’s duties of loyalty, confidentiality and good faith.

Some important clauses to pay attention in the Employment Contracts:

• The Termination Clause

·         Non-competition Clause

• Non-Solicitation

·         Changing the Terms of Employment

• Confidentiality

Advantages of Employment Agreement

The foremost advantage of having a written employment agreement is the setting out of the clear expectations of both the employee and the employer so that the uncertainty may be avoided. The other benefits include but are not limited to: –

• Defining the job description and duties which are expected from the employees
• Provisions for Probation Periods for new employees
• Laying down entitlements upon Termination
• Setting out of internal policies regarding expenditures, Benefit plans and other bonuses attached with the employment relationship
• Obligations of Non-Disclosure, Non-Solicitation, and other Restrictive Covenants
• Breakdown of Employee’s compensation, including base pay, bonuses, commissions, and the like.

Employment agreements are highly technical legal documents.  Their validity can turn entirely on the meaning of – or even absence of – a specific word or phrase in the contractual language that needs to be interpreted.  Whether you are an employee or an employer, the terms of any employment contract must be carefully studied. Legal advice should be obtained prior to executing any employment agreement or other employment-related documentation.

We can help in review your Employment Contracts. Feel free to call at 289-499-2584 for booking an initial consultation.

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