Ontario Employment Contract Review – Important Considerations

However, employment contracts are often drafted with the employer’s interests in mind. Legal jargon and intricate clauses can mask potential pitfalls. That is a key reason why a thorough review is essential. But what exactly should you be looking for?

This blog post unveils the top 7 aspects you must scrutinize during your Ontario employment contract review. By understanding these key areas, you will be well-equipped to negotiate favourable terms and ensure your rights are protected throughout your employment journey.

1. Job Title and Description

This might seem like a no-brainer, but it is crucial. Your job title and description should accurately reflect the duties and responsibilities you will be expected to perform. Any important discrepancies could lead to confusion or conflict down the road, such as the employer placing the employee on a performance improvement planor terminating employment on the basis the employee is not performing their job responsibilities.

For example, if the employment contract lists your title as “Marketing Manager” while the description mentions managing social media campaigns and developing marketing strategies – tasks typically associated with a “Marketing Manager” – it could be grounds for requesting a more accurate title or compensation adjustment that reflects the expanded responsibilities.

2. Compensation and Benefits

This section details your salary, bonuses, commissions (if applicable), and benefits package. Here’s what to pay close attention to:

• Salary: Ensure the contract clearly outlines your base salary, whether it’s paid bi-weekly or monthly, and any potential salary reviews or increases.
• Bonuses and Commissions: If your compensation includes bonuses or commissions, understand the criteria for earning them and how they’ll be calculated and paid out.
• Benefits: Review the details of your benefits package, including health insurance, dental coverage, disability insurance, and paid time off (vacation, sick leave, personal leave). Make sure you understand any employee contributions required for these benefits.
• Pension: Will the employer provide you with additional compensation in the form of pension plan benefits, such as Registered Retirement Savings Plan (RRSP), Defined Contribution Pension Plan, or a Defined Benefit Plan Plan?

3. Start Date and Work Location

These provisions establish the official commencement of your employment and your primary work location (e.g., office address, remote work status).

• Start Date: Confirm the exact date your employment begins to avoid any confusion regarding pay periods or benefit eligibility.
• Work Location: If the employment contract specifies a physical work location, be aware of any potential relocation clauses. If you are offered a remote work arrangement, ensure the contract clearly outlines the expectations and limitations associated with it.

4. Working Hours and Overtime Pay

This section defines your regular working hours, overtime pay eligibility, and potential on-call requirements.

• Regular Working Hours: Understand the expected workweek schedule (e.g., 40 hours per week, Monday-Friday) and any flex-time arrangements.
• Overtime Pay: Review the employer’s policy for overtime pay, including the threshold for triggering overtime (e.g., hours worked beyond 44 per week), the overtime pay rate (typically 1.5 times your regular pay), and how overtime will be compensated (either through additional pay or time off in lieu).
• On-Call Requirements: If your role involves on-call responsibilities, ensure the contract outlines the compensation structure for such periods and any limitations on how frequently you can be called upon.

5. Vacation, Sick Leave, and Personal Leave

This section specifies your entitlements to paid time off for various reasons.

• Vacation: Review your annual vacation allowance, including the accrual process, minimum and maximum amounts that can be carried forward, and any blackout periods restricting vacation time during peak business seasons.
• Sick Leave: Understand the company’s policy on paid sick leave, including the number of days allotted per year, eligibility requirements (e.g., providing a doctor’s note), and the maximum amount that can be carried forward.
• Personal Leave: If the company offers personal leave days, be clear on the number of days provided, their purpose (e.g., attending to personal appointments, emergencies), and any limitations on their use.

6. Termination Clauses

These clauses outline the process for termination of employment, including provisions for both you and your employer. Pay special attention to Notice of Termination (or Pay in Lieu of Notice). Ontario law mandates employers to provide reasonable notice before termination. In particular, the employment contract should specify the notice period you will receive or be expected to provide in case of resignation. This period typically increases with your tenure at the company. Unless it is a termination for just cause or wilful misconduct, an employer must provide the employee with either:

 – minimum entitlements under the Ontario Employment Standards Act, 2000

– full common law entitlements based on many factors that objectively impact an employee’s ability to find new comparable employment, including the employee’s age, years of service, level of job title, responsibilities and compensation, education, skills and experience, and current economic and labour market conditions.