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EMPLOYMENT LAWYERS TORONTO ADVISING EMPLOYEES ON EMPLOYMENT CONTRACTS

Your employment agreement or employment contract is one of the most important documents that you will need to pay attention to over the course of your working life. These contracts provide the foundation of a workplace relationship between an employer and employee (independent contractors generally have different agreements in place), set out expectations for both sides, and can be an effective tool for lessening potential risk and avoiding possible disputes. Every employment contract should be thoroughly reviewed by an employment lawyer before it is signed and finalized.

At Sultan Lawyers, our team of exceptional employment contract lawyer Toronto regularly assist non-unionized employees across all sectors and industries with their employment contracts. We have reviewed, drafted, and negotiated hundreds of agreements for both new hires just entering into a workplace relationship and current employees whose terms of employment may be changing. We know exactly what to look for in employment contracts, can proactively and strategically address any potential risks, and will ensure that the terms of the agreement are as employee-friendly as possible.

Important Terms in Employment Agreements 

Employees must be careful when reviewing their employment agreements. While many contracts may seem straightforward, employers often try to include clauses that significantly limit employee rights. Such commonly included clauses are:

  • Termination Clauses: employers will often include a termination clause that can significantly reduce the amount of notice an employee is entitled to upon termination, or which can otherwise seriously impact their termination package.
  • Non-competition Clauses: this type of restrictive covenant seeks to prevent a departing employee from working for another company in the same line of work as their previous employer.
  • Non-solicitation clauses: this type of restrictive covenant seeks to prevent a departing employee from maintaining contact with clients, suppliers, or others.
  • Discretionary bonus or other compensation clauses: sometimes clauses that speak to bonuses, stock options, and other employee incentives are written in a way that may limit an employee’s access to such benefits.

All employment contracts should be thoroughly reviewed to ensure that an employee’s rights are not being unfairly or illegally limited, that the employee is getting a maximum advantage and that they are protected from risk as much as possible. An experienced employment contract lawyer Toronto can help.

Contact the Employment Contract Lawyer Toronto at Sultan Lawyers for Guidance on Employment Contracts 

The knowledgeable employment lawyer Toronto at Sultan Lawyers can review your employment contract, help you negotiate the most beneficial terms, highlight areas of potential risk, and ensure that you are protected. Before you finalize any agreements with your new or current employer, contact us online or at 416-214-5111 for a consultation.

Frequently Asked Questions

What is an employment contract?

An employment contract in Ontario is a legally binding agreement between an employer and an employee that outlines the terms and conditions of employment. These terms typically include details such as job responsibilities, compensation, working hours, benefits, vacation entitlements, termination clauses, and any other relevant terms specific to the employment arrangement.

Further, Ontario employment law establish certain minimum standards that must be met in employment contracts, such as those outlined in the Employment Standards Act, 2000. These standards address details such as minimum wage, hours of work, overtime compensation, and termination notice or pay. Any contractual provisions falling below these minimums may not hold up in court.

It’s essential for both employers and employees to understand their rights and obligations under employment contracts. Seeking legal advice is advisable to ensure compliance with applicable laws and regulations.

Can you reject an employment offer before signing a contract?

Yes. You are not obligated to accept an employment offer.

Should my employment contract be written?

A written employment contract is not obligatory for employment with an employer in Ontario. In short, it is not mandated by legislation. However, a formal written agreement can effectively outline the terms of the employer-employee relationship.

Considering the above, provincially regulated employees are still protected under the Ontario Employment Standards Act and Ontario’s Human Rights Code.

In summary, the working arrangement can be established through an implied employment contract or verbal agreement. However, these types of agreements can be more challenging to substantiate and uphold.

Should you accept a job offer if you’re not sure?

If you want to. When doing so, be mindful that you will likely resign from your former position and must now rely on your new employment.

What happens if you get a better offer after accepting a job offer?

This is an employee’s decision. If you would like to rescind the acceptance of a job offer, you should notify your current employer that you are providing notice of the end of their employment relationship with them.

Can Employees Waive Entitlements Under the Employment Standards Act?

No. An employee cannot contract out of their entitlements pursuant to Ontario’s Employment Standards Act and an employer cannot force an employee to give up their rights under the Employment Standards Act.

What makes a termination clause unenforceable?

To deem a termination clause unenforceable, it must explicitly state an intention to deviate from the Employment Standards Act (“ESA”). Employers are advised to seek legal counsel before drafting employment contracts and regularly review them to minimize the risk of facing common law reasonable notice obligations.

A termination clause in an employment contract can be deemed unenforceable for several reasons under Ontario law, including but not limited to:

  • Violation of Minimum Standards: If the clause fails to meet or provide for the minimum statutory rights as outlined in the Employment Standards Act, 2000 (ESA), it may be considered unenforceable. This includes provisions for notice, severance, and other entitlements upon termination.
  • Ambiguity or Lack of Clarity: Termination clauses that are vague, ambiguous, or not clearly written can be interpreted in favor of the employee, leading to the clause being unenforceable.
  • All-Inclusive Language: Clauses that attempt to limit an employee’s entitlements to only what is provided in the ESA, without clearly stating that the employee will receive at least the minimum standards under the ESA, may be unenforceable.
  • Incorporating Illegal Terms: If any part of the termination clause violates the ESA or other relevant laws, the entire clause (and potentially other related clauses) may become unenforceable. This was highlighted in the case of Waksdale v. Swegon North America Inc., where the Ontario Court of Appeal ruled that if any termination provision in the employment agreement is illegal, the entire termination provision (including parts that might otherwise be legal) is unenforceable.
  • Lack of Consideration for Changes: If an existing employee is asked to agree to a new or revised termination clause without adequate consideration (something of value in exchange for agreeing to the new terms), the clause may be unenforceable.

It’s crucial for employers and employees to ensure that termination clauses are drafted clearly, comply with all legal requirements, and are updated as necessary to reflect changes in the law or employment circumstances. Legal advice should be sought to ensure the enforceability of such clauses.

What makes an employment contract valid and enforceable?

Employment agreements are contracts that are permitted in law, like any other contract. They are valid and enforceable on their own, as long as they honor the principles of contract law. There may be defects in an employment contract that could render it unenforceable.

What questions should you ask before signing an offer of employment?

It is suggested that you review the agreement carefully before signing and return to the employer for any clarifications or further inquiries. This could include questions regarding compensation, vacation policies, bonus structure, or to review any policies or document references within the employment agreement.

Is it fair to negotiate additional vacation time with your employer?

Yes, it is generally considered fair and acceptable to negotiate for additional vacation time with your employer. Here’s a more detailed explanation:

Legal minimums: In many jurisdictions, minimum vacation requirements are set by law. Employers must comply with these legal minimums.

Negotiation is common: Negotiating for additional vacation time beyond the legal minimum is a common practice, especially for more experienced employees or those in higher positions. Additionally, it is also possible to negotiate vacation time before signing a new employment contract.

Factors influencing negotiation:

  • Length of employment: As mentioned, employees who have been with the company for several years may have more leverage in such negotiations.
  • Job performance: Consistently high performers may be better positioned to negotiate additional benefits.
  • Industry standards: Some industries or companies offer more generous vacation packages as a competitive advantage.

Timing: These negotiations often occur during the hiring process, annual reviews, or when discussing a promotion or new role.

Mutual benefit: Additional vacation time can improve work-life balance and job satisfaction, potentially benefiting both the employee and the employer through increased productivity and retention.

Remember, while it’s fair to negotiate, the outcome will depend on various factors, including company policy, your role, and the overall compensation package. Always approach such negotiations professionally and be prepared to discuss how this arrangement could benefit both parties.


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