Are Your Employment Contracts Working For Your Business?
If you utilize a standard employment contract or template for your new employees but you haven’t reviewed your contracts with an employment lawyer, you’re leaving your business vulnerable.
That’s because, implementing an effective, protective employment contract, is not a one-size-fits-all solution. Instead, they are strategic documents designed to protect your business over time. If a contract uses outdated language or if a contract is too thin, it may not be worth the paper it’s written on.
Every situation is unique, and Ontario employment standards and legislation are always evolving. In order to protect your business while maintaining your obligations to your employees, you need contracts that are solid enough to hold up under scrutiny, but liberal enough that employees will actually sign them.
Striking that balance isn’t easy, but it is the key to creating effective contracts.
What You Need To Know
- The notice and severance obligations under the Employment Standards Act or the Canada Labour Code (for federally regulated employers) are not the whole story. Employers also a have common law obligation to provide reasonable notice of dismissal or pay in lieu of that notice
- Even small employers can have significant and costly common law obligations to their employees
- Using one of the many “templated” employment contracts available online can end up being a very costly mistake. Our courts have shown an increasing willingness to strike down termination clauses if they are not written to include all essential components
- In addition to having the right language in a contract, the manner in which the contract is introduced is also critical. If there is a lack of consideration (the legal term for what makes a contract enforceable) the agreement will not be enforceable ‒ no matter how carefully worded it is
- Employment contracts are also a chance to set the tone in a relationship and make sure that what’s important to your business is reflected in the terms of employment (i.e. protection of IP, reputational protection in terms of social media usage, managing any vulnerability the organization may have when the employee leaves). Ensure you’re using your contracts to truly protect your business.
How We Can Help
The employment law experts at Morrison Reist Krauss can help your business craft fair contracts that will hold up under legal scrutiny. Our process helps you:
- Mitigate liability and exposure
- Adhere to current employment standards
- Provide an agreement that is fair and reasonable to you and your employee
If you are not using an employment contract or if it’s been a while since you’ve had your contracts examined contact Morrison Reist Krauss today.
Call today: 519.576.5351 or Toll Free: 1.800.354.5723
