Employment contracts are better when written. For employers and employees, there is a lot to know about contracts.
Published by Paragon Legal Services on 10th May, 2021
In Ontario, all relationships between an employer and employee are considered to be contractual by both the provincial and federal governments. This applies whether or not there is a signed agreement or contract for employment. Once there is an agreement to pay a salary in exchange for a service such as labour, an employment contract is considered to be formed from inception.
A qualified legal employment professional can help with drafting and reviewing an employment contract. In many cases, most employers are unaware that even if there is no verbal agreement, there is still an employment agreement according to the government of Ontario.
In the absence of a
written employment contract, the legislation will step in to govern the rights
and duties of both the employer and employee. This legislation includes the
Employment Standards Act and the Human Rights Code. An experienced employment consultant
can also advise on the common law when it comes to employment contracts to
better assist in drafting and reviewing.
As of late, most employers
are preferring to have their employees hired through written and signed
agreements in order to better state what their requirements and duties will be.
Often, this is done before the employee's first day on the job.
In this way, the employment contract can clarify the scope of the job, its description and the employee's entitlement. If you already have a contract and would like it reviewed or if you are thinking of drafting one, consult with an experienced employment contract professional for advice and assistance.
For further clarification, written contracts for employment can be enforceable unless there is a major defect that renders them unenforceable by the court. These limits can include a failure to comply with employment standards as set out in the Employment Standards Act.
Here are a few points to note when drafting or reviewing a contract for employment:
- The benefits of a good draft include a clear statement of what the job and duties of the employee are
- It sets out how and when the employee can be terminated
- It ensures that the employee did not sign under duress and there was full consideration of the offer on their part
- Entitlements as to wages, deductions and perks are clearly stated and reviewed in the contract by the employee and approved by the employer
- The rights of both parties are stated in a well drafted contract