Job Offer and Employment Contract Review
An Employment Contract (also known as an “Employment Agreement”) establishes the legal rights and responsibilities that govern an employment relationship between a company and its employee. The employer’s main reason for asking an employee to sign an employment contract is to benefit itself by requiring the employee to give up some of their workplace rights, especially when it comes to severance pay upon termination of employment (severance pay). This is why it is important to obtain a detailed employment contract review with an experienced employment lawyer.
What is Included in an Employment Contract?
A typical employment contract will contain information about an employee’s job, such as their position, responsibilities, probation period, compensation, hours of work, vacation entitlements, non-competition agreement, workplace policies and so on. Once signed, it becomes a binding (enforceable) contract between the employer and employee that will govern the working relationship.
Some important terms that are usually included in an employment contract include:
Termination Clause
This is a specific section in an employment contract that an employer will rely on to try and substantially limit the amount of notice of termination (severance pay) it will have to pay the employee, when it decides to let them go without cause (good reason). Many employees overlook how important this part of an employment contract is in terms of limiting their legal rights and options.
If a termination clause is not properly drafted, the employee may be entitled to greater severance pay under the “common law” standard (as opposed to the statutory minimums required under the Employment Standards Act, 2000). The termination clause is one important reason why it is always important for employees (and employers) to seek an employment contract review with an experienced employment lawyer.
Changes to Terms of Employment
To avoid a claim of “Constructive Dismissal,” some employment contracts state that the employer is allowed to unilaterally change the terms of the employee’s job, such as their responsibilities or compensation. As with most other aspects of an employment contract, such terms can often be easily negotiated through the assistance of an employment lawyer.
How Bune Law Can Help
If your current (or new) employer asks you to sign a new employment agreement, call Bune Law today to speak with an experienced employment lawyer in the Toronto area review your employment contract, so you can understand your rights and obligations before you sign the dotted line.
Bune Law, Toronto employment lawyer, regularly advises and help employees negotiate employment contracts and job offers, to help them better understand the terms of the proposed contract of employment. Typically, an employment contract is presented to the employee either before starting a new job or after a promotion.
In an employment contract review, an employment contract lawyer will examine many of the topics discussed above, including:
- Termination Clause: what will you be entitled to if the company lets you go and ends your employment? Under what circumstances does employment law allow the employer to let you go?
- Employee vs. Contractor Status: are you considered an “independent contractor,” such that you will not enjoy the basic benefits of employment law protections for a regular employee?
- Probationary Period: is there a “trial period” in which you may be let go from your job without prior notice or termination/severance pay?
- Non-Solicitation and Non-Competition Clauses:are you restricted from pursuing certain job opportunities once you leave your employer?
- Compensation: this includes raises, health benefits, pension benefits, bonuses and commissions. You need to know what you are entitled to, when you are entitled it and especially after your employment ends.
Call Bune Law Today
If you receive a new job offer and are asked to sign an employment contract, contact Bune Law for a review with an employment contract lawyer. With years of knowledge and experience in Ontario employment law, an employment lawyer at Bune Law can help you understand and protect your employee rights.