It is recommended that all employers provide employment contracts to their employees and ensure that the contract is enforceable from the onset to limit their employee’s entitlements to the minimum requirements under the Employment Standards Act in the event that the employment of the individual is terminated. Without this, the employee will be subject to the more generous standards of common law. A properly drafted employment contract will ensure that both employees and employers understand their rights and obligations during the employment relationship.
Employment law is constantly changing, it is therefore imperative that employers have properly drafted employment contracts, that include terms such as:
- Compensation structure;
- Vacation entitlements;
- Confidentiality obligations;
- Restrictive covenants including non-solicitation and non-competition clauses; and
- Termination clauses.
One of the most important and highly litigious provisions in an employment contract is the termination clause. Termination clauses govern the amount of notice of termination, or payment in lieu of notice of termination, to which an employee is entitled.
Fixed Term Contracts
It is recommended that employers avoid hiring employees on fixed term contracts as it brings about unnecessary risks such as employers having to provide severance pay for the remainder of the term if an employee is terminated early. If an employer must hire an employee on a fixed term, it is imperative that it is drafted properly.
Contact Mackenzie Law today to ensure that you have a properly drafted employment contract that is enforceable in the event that an employment relationship comes to an end. An unenforceable contract can cost employers millions; it is therefore important that employers get their employment contracts right at the beginning of the working relationship.