An Employment Contract: Standard Clauses

Employment contracts have become a cornerstone in most workplaces, serving as a crucial agreement that outlines the terms of engagement between employers and employees. The shift towards formal written agreements is not just a trend but a strategic move to mitigate the risk of costly litigation. However, to be considered valid, these employment contracts must adhere to certain minimum requirements, and this article aims to shed light on the key clauses that should be part of any comprehensive employment contract.

Key Elements of Employment Contracts: Beyond the Basics

At the heart of an employment contract lies a fundamental exchange – employees offering their skills and services, and employers providing monetary compensation in return. This exchange forms the backbone of a valid and enforceable employment contract, with crucial details typically found under sections covering job titles, duties, and remuneration.

Beyond the basics, a robust employment contract should encompass various essential clauses, including but not limited to:

• probation period,
• vacation entitlement,
• benefit,
• overtime,
• notice period, and
• termination (both “without cause” and “for cause“).

While many employers opt for written contracts to legally limit notice or compensation in case of termination without cause, it is essential to note that contracts cannot undercut legislated standards, such as those outlined in the Employment Standards Act (“ESA”).

Implied Terms: Unveiling Rights and Responsibilities

Embedded within employment contracts are implied terms that delineate rights and obligations for both parties involved. For instance, an implied clause may dictate that employees must perform their duties honestly and in good faith. Simultaneously, employers have a duty of good faith and fair dealing when terminating an employee.

Navigating the Unwritten Terrain: Oral Agreements and Safeguards

Contrary to a common misconception, not all employment agreements need to be in writing to be valid. Both employees and employers might be bound by oral agreements that come with specific safeguards, protecting their rights throughout their tenure. These oral agreements often align with the provisions outlined in the ESA and any additional benefits communicated by the employer during the employment period.

The Value of Legal Insight: Consulting an Employment Lawyer

Having a written employment agreement benefits both parties by offering a clear reference point for their relationship. If you are starting a new position or receiving an employment contract, it is recommended to consult with an employment lawyer. Their knowledge can assist you in understanding the contract’s details, confirming its validity through the included clauses, and providing valuable insights into your rights and entitlements.

Contact Achkar Law

If you are an employer who needs an employment contract drafted, or an employee who wishes to have your employment contract reviewed, our team of experienced employment contract lawyers at Achkar Law can help.

Contact us by phone toll-free at + 1-800-771-7882 or email us at [email protected] and we would be happy to assist.