Understanding Employment Contracts In Ontario

An employment contract is a critical legal document that outlines the terms and conditions of the employer-employee relationship. When there is a workplace dispute, this is usually one of the first places an employment contract lawyer will review to understand what the respective rights and responsibilities of the employer and employee in navigating the challenge and finding the best possible resolution. It is important to recognize that while an employment contract usually provides additional details and specific arrangements based on the needs and requests of both parties at the time it is negotiated, it must always align with the Ontario Employment Standards Act, 2000. The Employment Standards Act establishes the baseline of minimum employment standards intended to protect and ensure the rights and entitlements of employees across various aspects of their work. As a result, while an employment contract can go above and beyond those minimum requires to provide an employee with greater rights and entitlements, it must never provide less than those to benefit the employer. This ensures that all employees receive the protections and entitlements mandated by law, such as minimum wage, overtime pay, and appropriate working conditions.

What is an Employment Contract?

An employment contract is a key legal document that defines the terms and conditions of the relationship between an employer and an employee. While an employment contract does not need in writing (and in fact, it can even be a verbal contract), it is often best (especially for employers) to have it in writing. The main reason is because it helps minimize the risk of employment disputes by clarifying from the outset both parties’ roles, responsibilities, and rights, creating a clear framework for the employment relationship. By clearly outlining what is expected from both the employer and employee in the relationship, employment contracts help prevent misunderstandings and provide a reference point should disputes arise, making them a prudent tool in establishing a fair and transparent relationship.

**Can an Employer “Contract Out” of the Employment Standards Act?**

No. The courts in Ontario have made it clear that attempting to expressly contract out of the Employment Standards Act is illegal – that is, employers cannot try and provide employees with less than what is required in the law, such as less the minimum amount of notice of termination (or severance pay). It is a crucial principle of employment law that every employment contract, whether written or verbal, must provide all of the minimum benefits and standards contained in the Employment Standards Act. If an employer attempts to contract out of the Employment Standards Act, the employment contract will be deemed illegal and unenforceable, entitling the employee to receive their full benefits under common law, including when it comes to a severance package when facing a wrongful dismissal claim. Additionally, it can also subject employers complaints by employees to the Ministry of Labour, and many other issues.

What is Included in an Employment Contract?

Most employment contracts will attempt to cover the most essential topics relevant to the workplace relationship, including the following sections:

Parties to the Agreement:This section identifies the employer and the employee, including their full names and titles.
Start Date and Job Details:This section specifies the start date of your employment, your job title, and a brief description of your duties and responsibilities.
Compensation and Benefits:This section outlines your salary or wages, including details like pay frequency and method. It may also detail benefits offered, such as health insurance, paid time off (vacation, sick leave), and retirement plans.
Working Hours and Location:This section specifies your regular working hours, including any overtime arrangements and your primary work location (e.g., office address, remote work policy, hybrid work arrangement, and so on).
Probationary Period:Some contracts may include a probationary period where your performance is closely evaluated before your employment becomes permanent.
Termination of Employment:This section outlines the process for ending employment, including notice periods required by both employer and employee, as well as potential grounds for dismissal (termination for just cause or wilful misconduct, resignation, frustration of employment contract, or termination without cause).
Confidentiality and Intellectual Property:This section may specify rules regarding confidentiality of company information and ownership of intellectual property created during your employment.
Additional Terms:This section can include various miscellaneous terms specific to the role or company, such as dress code, policies regarding social media use, and conflict of interest.
Signatures:This final section includes designated spaces for both the employer and employee to sign and date the contract, signifying their agreement to the terms.

When Should I Consult an Employment Lawyer About My Employment Contract?

For both employers and employees, it is always wise to consider contacting an employment contract lawyer about your employment contract, such as in the following situations:

employment contract review
employment contract preparation
changes to employment contracts
employment disputes relating to unpaid wages, changes to job title and responsibilities, demotions or constructive dismissals
terminations of employment (including when an employer provides an employee with a severance package for review and negotiation)

Whether you are an employee or an employer, it is good practice to consult an employment lawyer whenever you have questions, concerns, or uncertainties about your employment contract. They can provide specific legal advice based on your own circumstances and help ensure that your rights are protected.

Need Employment Contract Lawyer’s Advice for Your Employment Contract?

Whether you’re drafting a new employment contract or reviewing an existing one, the details always matter. At Bune Law, we understand the complexities of employment law in Ontario and can help ensure that your employment contracts are legal and comply with not only the Ontario Employment Standards Act and evolving caselaw, but your own needs and expectations.

Book a Consultation with an Employment Lawyer in Toronto

At Bune Law, we understand and are familiar the complexities of workplace law and are committed to helping both employers and employees navigate these challenges. Whether you are an employer or employee dealing with employment contracts, workplace disputes like a wrongful dismissal or constructive dismissal, or simply need guidance on your rights and obligations for a severance package review and negotiation, our experienced employment lawyer is here to assist you.

Book a confidential consultation with our Toronto employment law firm to protect your legal rights to understand your options and protect your rights. Why Choose Bune Law When You Need an Ontario Employment Lawyer?

Experience in all areas of workplace law, including wrongful dismissal claims, constructive dismissal claims, severance package reviews, severance package negotiations, discrimination and human rights disputes, and employment contract reviews.
Proven track record of successfully resolving workplace disputes through negotiation, mediation, and employment litigation.
Compassionate and personalized approach to each case, ensuring tailored solutions that meet your specific needs.

If you need a Toronto employment lawyer who is committed to delivering strong results and proactive solutions, please contact Bune Law online or by phone today at 647-822-5492.