What to Know Before Signing a New Employment Contract

What to Look for Before Signing a New Employment Contract

Signing a new employment contract (also called an “employment agreement”) is a significant decision that can have long-lasting consequences. Whether you are an employee joining a new company for the first, or an employee being asked to sign a new employment contract for your current employer, it is essential to carefully review the terms and conditions to ensure they are fair and protect your employee legal rights. This blog article will provide you with key considerations when evaluating a new employment contract.

Understanding the Basics of an Employment Contract

Before delving into specific clauses, it is crucial to grasp the fundamental components of an employment contract:

Job Title and Description: Clearly understand your role and responsibilities within the company.
Compensation: Review your salary, bonuses, commissions, and any other forms of pay.
Benefits: Assess the health insurance, retirement plans, vacation time, and other benefits offered.
Working Hours: Determine your regular working hours, overtime policies, and any on-call requirements.
Termination Clause: Understand the terms for terminating the employment relationship, including how much notice of termination, or alternatively, amount of termination pay and severance pay an employee will receive (called a “severance package“).
Confidentiality and Non-Compete Clauses: Be aware of any restrictions on disclosing company information or working for competitors after leaving the company.
Dispute Resolution: Familiarize yourself with the process for resolving disputes, such as mediation, arbitration or wrongful dismissal litigation (the typical methods employment lawyers in Ontario help resolve employment dispute).

Key Considerations for Employees

Fair Compensation: Ensure your salary and benefits are competitive and align with your experience and qualifications.
Clear Job Expectations: Understand your job duties, performance expectations, and evaluation criteria.
Reasonable Working Hours: Ensure your working hours are reasonable and comply with employment laws.
Adequate Benefits: Evaluate the quality and coverage of health insurance, retirement plans, and other benefits.
Fair Termination Clause: Review the notice period and severance pay provisions to ensure they are reasonable and comply with applicable laws.
Non-Compete Clauses: Be cautious of overly restrictive non-compete clauses that may limit your future career opportunities.
Dispute Resolution: Understand the dispute resolution process and ensure it is fair and impartial.
Employee Rights: Be aware of your rights under employment law, such as the right to a safe workplace, fair treatment, and protection from discrimination.

Negotiating an Employment Contract

If you have concerns about certain terms of the contract, don’t hesitate to negotiate. Here are some tips for effective negotiation:

Be prepared: Research industry standards and comparable salaries to strengthen your bargaining position.
Be assertive but respectful: Clearly communicate your concerns and expectations in a clear and concise manner.
Consider alternatives: If negotiations fail, be prepared to consider alternative employment opportunities.

Seeking Legal Advice from an Employment Lawyer

If you have questions or concerns about your employment contract, consulting with an employment lawyer is highly recommended. A lawyer can provide expert guidance and help you understand your rights and obligations.

Signing a new employment contract is a significant decision. By carefully reviewing the terms and conditions, understanding your rights, and negotiating effectively, you can ensure that the contract is fair and protects your interests.

A Deeper Dive into Employment Contracts: Essential Clauses

While we’ve covered the fundamental components of an employment contract, let’s delve deeper into some critical clauses that often require careful attention:

Probationary Period

Duration: Understand the length of the probationary period and the conditions that must be met to complete it successfully.
Termination: Be aware of the employer’s right to terminate employment during the probationary period without providing notice or severance pay

Overtime Compensation

Eligibility: Determine when you are entitled to overtime pay and the applicable rate.
Exemptions: Be aware of any exemptions or limitations that may apply to your role.

Expense Reimbursement

Eligible expenses: Clarify which expenses are reimbursable and the required documentation.
Reimbursement process: Understand the procedures for submitting expense claims and receiving reimbursement.

Confidentiality and Non-Disclosure

Scope of confidentiality: Determine what information is considered confidential and the restrictions on disclosing it.
Duration of restrictions: Understand the time period during which confidentiality obligations apply.
Exceptions: Be aware of any exceptions to confidentiality, such as disclosure to legal authorities.

Non-Compete and Non-Solicitation Clauses

Scope: Evaluate the geographic and temporal restrictions imposed by these clauses.
Reasonableness: Ensure the clauses are reasonable and necessary to protect the employer’s legitimate business interests.
Alternatives: Consider alternative measures, such as customer non-solicitation clauses, that may be less restrictive.

Intellectual Property

Ownership: Determine who owns any intellectual property created during your employment.
Assignment: Understand whether you are required to assign ownership of your intellectual property to the employer.

Severance Pay

- Notice period: Review the required notice period or severance pay entitlement upon termination.
- Exceptions: Be aware of any exceptions to the severance pay provisions, such as termination for just cause.

Employment Lawyer Consultation

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.