Employment Contract Drafting
for Ontario Employers
The contract you use today shapes the dispute you face tomorrow.
Most employment disputes do not begin with a termination. They begin with a contract. One drafted years earlier, never revisited, assumed to say something it does not. A poorly worded termination clause, an unenforceable non-compete, or a missing probation provision can cost your business well beyond legal fees. Bune Law helps Ontario employers build contracts that hold up when it matters.
When to Review Your Employment Contracts as an Ontario Employer
Before a New Hire Begins
The period before a new hire starts is the right time to get the contract right. There is no existing relationship to navigate, no signed agreement to work around. A properly drafted offer and employment contract at this stage sets the terms clearly and limits exposure from day one.
Before Asking an Existing Employee to Sign an Updated Agreement
Contracts that predate significant changes to an employee's role, compensation, or title carry real risk. So do agreements drafted before recent Ontario court decisions that changed how termination clauses are read. Bune Law reviews these agreements regularly and identifies what needs to change before a signature is requested.
Before Using an Existing Contract for a New Role
A contract written for one position is often pulled out for the next hire. Whether it actually fits a different role, seniority level, or set of responsibilities is worth confirming before it becomes the weakest point in a wrongful dismissal claim.
Why Employment Contracts Require More Than a Standard Template
Most Ontario employers never set out to use a weak contract. They started with something that seemed reasonable: a template, a document from a previous business, or an agreement a colleague used. Employment law expertise was not part of the equation. These agreements often look complete on paper. The problems appear when the employment relationship ends.
The termination clause is where this most commonly surfaces. A properly drafted termination clause limits an employee's entitlement to the statutory minimum under the Ontario Employment Standards Act, 2000, rather than what common law notice would otherwise require. For longer-tenured or senior employees, that financial difference can be the deciding factor in whether a termination becomes a dispute.
Ontario courts scrutinize termination clauses. The wording matters. So does ESA compliance, how courts have interpreted similar language, and whether anything changed in the employment relationship between signing and termination. A clause that falls short on any of those points is regularly set aside. Once that happens, the employee's entitlement is assessed at common law. The employer has little room to negotiate.
A termination clause that does not hold up is not simply a drafting problem. It is a liability that existed from the day the contract was signed. Most employers do not discover this until it is too late to fix.
At Bune Law, employment contract drafting is one of the most common issues we handle for Ontario employers. We review existing agreements, identify where risk lives, and build contracts designed to hold up. From the offer letter through to termination.
How Bune Law Helps Ontario Employers With Employment Contracts
Employment Contract Drafting
Employers bringing on a new hire need more than an offer letter. Bune Law drafts employment contracts for Ontario employers that address compensation, probation, confidentiality, and termination. Each contract is built around the specific role and compliant with current Employment Standards Act, 2000 requirements and Ontario case law.
Employment Contract Review for Enforceability
An existing contract that has never been tested may still carry real risk. Bune Law reviews employment agreements to identify provisions that may not hold up, termination clauses in particular, and advises on what needs to change before that risk becomes a liability.
Updating Contracts for Existing Employees
Updating an employment contract mid-relationship requires careful handling. Changes made without proper consideration are regularly challenged and set aside by Ontario courts. Bune Law advises employers on how to implement updates correctly and prepares revised agreements that are enforceable from the date they are signed.
Why Employers Choose Bune Law for Employment Contract Work
We Know What Courts and Employee Lawyers Look For. We Draft Accordingly.
Most employment lawyers who prepare contracts for employers have never argued one in court. Sezar Bune has. That experience shapes every agreement Bune Law prepares.
Courts and employee-side counsel examine employment contracts for the same things: provisions that are technically deficient, clauses that fall short of ESA requirements, and language that leaves room for a stronger interpretation in the employee's favour. Knowing what they look for, from having been on that side, is what informs how every clause is drafted.
The result is the difference between a contract that looks complete and one that holds up when it is tested.
Sezar regularly prepares and reviews employment contracts for Ontario employers across industries and seniority levels — from standard offers of employment to executive agreements with complex compensation, restrictive covenant, and termination structures. Every engagement is handled directly, without delegation, and with a practical focus on what the contract actually needs to accomplish for the business.
Ready to Get Your Contracts Right?
Speak directly with Sezar Bune. No referrals, no delegation.
Frequently Asked Questions
A written employment contract is not strictly required for an employment relationship to exist in Ontario. That said, a written agreement is how employers define the terms of the relationship with clarity, including any provisions that would otherwise be left to implied terms or verbal understandings. Without that clarity, questions about what was agreed tend to be resolved on terms the employer never agreed to.
Using one contract across all roles is one of the most common sources of employment contract disputes Bune Law sees in practice. A termination clause calibrated for one role may not hold up for another. A restrictive covenant appropriate for a senior employee may be found overbroad when applied to someone more junior. The contract that worked for your last hire is not automatically the right starting point for the next one. These distinctions matter most when an agreement is tested in a dispute — at which point there is no opportunity to fix them.
When a termination clause is set aside, the employee's entitlement is assessed at common law rather than under the clause the employer relied on. Ontario courts have done this with notable consistency in template-based and outdated agreements. For a longer-tenured or senior employee, the difference between the clause and what common law requires can be the difference between a contained termination and a costly one.
Non-competition clauses were effectively banned for most Ontario employees when the Working for Workers Act came into force. The exceptions are narrow. Where a non-compete is still permitted, whether it will hold up depends on how it is worded, the seniority of the employee, and the legitimate business interest it is meant to protect.
Non-solicitation clauses are more broadly available but courts still look at whether the scope is reasonable for the role. Getting the drafting right at the outset matters. A clause that is too broad is treated the same as one that does not exist.
More often than most employers think. Courts have struck down termination clauses that were considered acceptable drafting just a few years ago. Legislation has added new requirements that older agreements do not account for. A contract signed three years ago may already have a problem in it.
Reviewing agreements after a significant court decision in this area, after a legislative change, or when an employee's role changes materially are all reasonable triggers. Waiting until a termination to find out is the most expensive way to discover the answer. Contact Bune Law to have your existing contracts reviewed.
Speak With a Toronto Employment Lawyer About Your Employment Contracts
Employment contracts that have not been reviewed recently carry risk most employers do not see until it surfaces in a dispute. Whether you are bringing on a new hire or want to know whether your existing agreements still hold up under current Ontario law, the right time to address those questions is before they become relevant.
Bune Law prepares and reviews employment contracts for employers across Toronto, North York, Mississauga, and throughout the GTA and Ontario. Speak directly with Sezar Bune.
The information on this page is general in nature and intended for informational purposes only. It reflects legal principles applicable in Ontario and does not constitute legal advice. Contact Bune Law directly to understand how these principles apply to your specific matter.
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