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Employment contracts often set out the following terms of employment:

  • Compensation (including any applicable bonus structure)
  • Hours of work
  • Requirements of the role
  • Reference to applicable employment policies
  • Included or offered benefits
  • Vacation entitlement
  • Employer and employee obligations and entitlements on resignation or termination
  • Confidentiality/non-disclosure requirements
  • Non-solicitation obligations

Employment contracts are not legally required.  Specifically, there is no law that requires that the terms of employment be put in writing.  Many employers do, however, choose to require employees to sign employment contracts.

These agreements may limit an employee’s rights, such as those relating to termination or severance pay. In some cases, this may result in a lesser entitlement than the employee would receive under the common law. Employment contracts are therefore an important component of the employment relationship and can have a critical impact on employee rights.