Working Before Receiving a Signed Employment Contract
In Ontario, many employees begin working before receiving or signing a formal employment contract. While this is common, it can lead to legal uncertainties regarding wages, termination rights, and workplace policies. Employers and employees should understand the risks and legal implications of working without a signed agreement.
This article explores the importance of written employment contracts, the potential risks of starting work without one, and how an employment lawyer can help protect workplace rights.
Is an employment contract required to start working?
An employment contract does not always need to be in writing to be legally binding. In some cases, a verbal agreement or an implied contract based on conduct can establish employment terms. However, without a signed employment contract, disputes can arise regarding:
- Wages and benefits
- Job duties and responsibilities
- Termination rights and notice periods
- Non-competition and confidentiality obligations
A written contract helps clarify expectations and minimize misunderstandings for both employers and employees.
Risks of working without a signed employment contract
1. Uncertainty about terms of employment
Without a written contract, the terms of employment may be unclear or disputed. Employees may assume they are entitled to certain benefits or job security, while employers may believe they have flexibility in defining job duties. This uncertainty can create legal issues if conflicts arise over workplace rights or obligations.
2. Termination disputes and common law notice
Employees working without a written contract may be entitled to reasonable notice under common law if they are terminated. Unlike the minimum notice period set out in the Employment Standards Act, 2000 (ESA), common law notice periods can be significantly longer.
Employers who do not provide a written contract with a termination clause may be required to provide severance pay higher than expected.
3. Issues with probationary periods
Employers may assume that an employee is on probation, allowing for termination without notice. However, without a clear probation clause in a written contract, employees may still be entitled to termination pay if dismissed.
4. Ambiguities in restrictive covenants
Employers often include clauses in employment contracts restricting employees from working for competitors or disclosing confidential information. If an employee starts work without signing an agreement, these restrictive covenants may not be legally enforceable.
5. Wage and benefit disputes
Employees who begin working without a signed contract may have uncertain entitlements to bonuses, overtime pay, or commissions. Employers who do not document compensation details may face disputes over unpaid wages.
As Christopher Achkar, employment lawyer and founder of Achkar Law, explains:
“Starting work without a signed employment contract can lead to serious legal uncertainties for both parties. Before making assumptions about your rights or obligations, it’s wise to speak with a lawyer to avoid costly misunderstandings.”
How employers can protect themselves
Employers should take proactive steps to prevent legal disputes related to unsigned employment contracts:
- Provide a written employment contract before work begins to ensure clarity.
- Give employees sufficient time to review and seek legal advice before signing.
- Ensure termination clauses comply with Ontario employment laws to avoid legal challenges.
- Clearly define job duties, compensation, and expectations to prevent misunderstandings.
A well-drafted employment contract helps employers enforce workplace policies and minimize wrongful dismissal claims.
What employees should do before starting work
Employees should review their rights before beginning work without a signed employment contract. If an employer has not provided one, employees can:
- Request a written contract to clarify workplace rights and responsibilities.
- Seek legal advice to understand potential risks.
- Document verbal agreements regarding wages, benefits, and job expectations.
- Clarify termination rights to ensure fair treatment if employment ends.
If an employer refuses to provide a written agreement, employees may still have legal protections under Ontario employment laws.
How an employment lawyer can assist
An employment lawyer can assist both employers and employees by:
- Drafting and reviewing employment contracts to ensure compliance with the ESA.
- Advising on workplace rights when starting work without a signed agreement.
- Representing employees in disputes over termination, wages, or workplace policies.
- Helping employers avoid legal liability by ensuring proper contract implementation.
Contact Achkar Law
If you are an employer or employee dealing with employment contract issues, Achkar Law can help.
Call toll-free: 1-800-771-7882 | Email: [email protected]
The article in this client update provides general information and should not be relied on as legal advice or opinion. This publication is copyrighted by Achkar Law Professional Corporation and may not be photocopied or reproduced in any form, in whole or in part, without the express permission of Achkar Law Professional Corporation. ©
Workplace Law Topics
Employees: Employee Contracts, Wrongful Dismissal, Termination and Severance, Employment Dispute and Litigation
Employers: Employment Law, Employment Agreements, Employee Terminations and Layoffs, Employment and Labour Compliance, Independent Contractor Agreements