If You’re an Ontario Employee, Here’s Why You Should Get Your Employment Contract Review with an Employment Lawyer

There is perhaps no more exciting time in one’s life than when you are offered a new job, especially one that comes with a higher salary, greater benefits and is generally “step up” in your career. Usually, the last thing on someone’s mind is to get an employment contract review by an employment lawyer, especially when it could mean losing out on the job. It’s little wonder that a majority of employees simply sign a new employment contract without much thought – other than perhaps reviewing the job title and salary being offered.

But what if the company offering you a job says it requires that you sign a new employment contract? Should you sign it right away, or have you review the contract with an employment lawyer?

The answer is simple: “yes – you should always review your new employment contract with a lawyer before you sign.” While this answer might surprise some people – who sometimes think a lawyer’s typical response to a question is usually “it depends” – there is a very good reason: an employment contract by and large favours an employer, so you could very well be signing away significant rights you may have as an employee, especially when it comes to getting severance pay (what some people refer to as a financial “severance package” or “termination package”).

Given the serious consequences for employers who face a wrongful dismissal claim – which often means having to provide an employee with a financially expensive severance package – it should come as no surprise that employers across Ontario are increasingly asking new (and ongoing) employees to sign an employment contract.

At this point, you may ask: “Why? And what’s in it for them”? Well, for employers, there’s a lot to gain – or put simply, without an employment contract, they have a lot to lose when it comes to paying employees hefty severance packages!

What is an Employment Contract?

An employment contract is a written agreement between an employer and employee that is enforceable by law, under which a business engages the services of staff on a full-time or part-time basis. The basic purpose of an employment contract is to outline each side’s rights and responsibilities. As disagreements are a fact of life (and people’s version of events can vary), employment contracts provide proof of the parties’ agreement in the event of a dispute.

Why is this important? Should the parties take opposing positions regarding whether an employment contract exists at all, or should they disagree on the terms of the contract, a written employment contract provides excellent evidence of their intentions and mutual promises – providing, of course, it is properly drafted! Once signed, a person is bound by what was agreed to in the written employment contract.

This is why it is so important to have an experienced employment lawyer prepare (and review) an employment contract before it is signed. The terms of an employment contract constitute a record of the promises made and exchange between the parties. So, it is vital the it record these promises with as much precision as possible. Should a dispute arise – which is extremely typical in Ontario employment law – the first thing to do is to find a solution within the language of the employment contract itself.

But what happens when an employment contract is flawed? For example, it fails to address significant matters, or its drafting may be vague and confusing. In these cases, the terms of the employment contract are unlikely to provide a resolution that is acceptable to both parties in the event of a dispute. The parties may then need to look to the courts as a last resort in settling their contractual differences.

So, what difference can an employment contract make in a workplace dispute between an employer and employee? Oftentimes, all the difference in the world!

What to Review in an Employment Contract?

There are a number of terms that commonly appear in employment contracts. As long as an employer and employee turn their minds to each of these issues, an employment contract should accurately reflect the agreement they have struck, including among other things:

Job Title and description
Start Date
Compensation (e.g., base salary, health benefits package, pension plan, bonus pay, etc.)
Place of work (e.g., in-office, working-from-home, hybrid arrangement, etc.)
Temporary layoff
Termination of Employment (i.e., resignation, termination for cause, termination without cause, ESA minimum termination pay)
Confidentiality
Entire agreement (i.e., if what you thought you agreed to is not in the “four corners” of the employment contract, it is oftentimes is not something you can insist on)
Non-Solicitation Agreement
Dispute resolution (e.g., mediation, arbitration, etc.)

Whether you happen to be an employee or an employer, it is crucial that you review all of the terms of an employment contract with a leading employment lawyer. But especially for employees, signing an employment contract comes with serious consequences, including potentially giving up significant severance pay rights in terms of the severance package they are entitled to in the future when employment oftentimes comes to an end in the event of a wrongful termination.

For all these reasons, it is important to have a trusted and experienced employment lawyer review the language of your employment contract before you agree to sign it – not only to understand what you are binding yourself to, but to also protect your future rights as ab employee.

How an Employment Lawyer Can Help You with Employment Contract Review

Our employment lawyer has reviewed many different types of employment contracts (from C-suite, professional, entry-level and managerial), and is able to provide you with will provide you with advice based on this experience. As part of a consultation for an employment contract review, you will review and discuss in detail:

all the terms and conditions of your new employment contact, ranging from your job description (e.g., “does it meet your understanding?”) and compensation (e.g., “does it reflect everything you agreed to be paid?”), to termination and severance pay (e.g., “does it restrict your ability to receive a fair and appropriate severance package in a wrongful termination”) and post-termination activities (e.g., “is it illegally attempting to restrict your ability to compete with your employer by a non-competition agreement?”);
make sure you understand what your rights and responsibilities as an employee are;
make sure you understand what your employers rights and responsibilities are;
help you understand the consequences of each term of the employment contract; and
suitable and helpful means to negotiate the terms and conditions of your employment contract.

Generally, as part of an employment lawyer consultation, you will formulate an effective strategy to properly negotiate important terms that you should quickly accept before understanding what you will gain (and what you will lose). At the end of the day, you will gain knowledge to help position yourself to negotiate a fair and reasonable employment agreement – one that protects your future interests.

Contact Bune Law, Toronto Employment Lawyer

If you are an employee who is being asked by your current (or new) employer to sign a new employment contract, let us review all the terms of your contract to help you understand the implications before you sign the dotted line. Bune Law is a skilled, dedicated and experienced employment law firm where the objective is to help you navigate your employment journey, beginning with your employment contract.

For an employment contract review, call Bune Law, Toronto employment lawyer, today at 647-822-5492.

Disclaimer: The content on this website and blog is not legal advice or legal opinion of any kind, and is only general information. It is in no way particular to your individual case and should not be relied upon in any way. The outcome of a legal matter depends on its unique circumstances, and prior successes are not indicative of future results. No portion or use of this website or blog will establish a lawyer-client relationship with the author, this law firm or any related party. Should you require legal advice for your particular situation, please fill out the form below, or call 647-822-5492, to request an initial consultation.