Employee Contracts
The most important tool in an employer’s risk management toolbox is a valid employment contract. Contracts lay out the details of the relationship between an employer and an employee, clearly outline expectations, and serve to remove any uncertainty that may exist. Employers should have up-to-date, written contracts with every employee in their workplace and should consult with an employment lawyer before finalizing any employment agreement. A lawyer will ensure that your contract is valid, protects your interests, and minimizes risk and the possibility of future problems.
At Rousseau Mazzuca LLP in Toronto, our knowledgeable employment lawyers have drafted hundreds of employment contracts for clients in various sectors, including banking, retail, manufacturing, construction, mining, legal, and transportation. We can review your existing agreements and make sure they are current, valid, and continue to protect your interests, or we can help you draft new contracts.
ELEMENTS YOU MAY WANT TO INCLUDE IN AN EMPLOYMENT CONTRACT
Relocation clauses, which allow the employer to change employees’ place of work (including to another province or country)
Reassignment clauses, which allow the employer to demote employees without compensation
Non-competition clauses, which prevent employees from working elsewhere in the same industry
Non-solicitation clauses, which prevent employees from remaining in touch with clients or suppliers
Discretionary bonus clauses, which remove employees’ right to a bonus that might have been promised
IMPORTANT PROVISIONS IN EMPLOYMENT CONTRACTS
The most common provision employers try to introduce without any prior discussion or agreement is a termination clause. This can reduce an employee’s right to notice of termination or severance by more than 90%. For example, a senior employee who might otherwise be entitled to two years of notice of termination could have that period reduced by a contract to just 8 weeks.
Prior to finalizing any employment contract with an employee or a contractor, you should ensure that he/she understands what is being agreed to, and has had the opportunity to obtain their own legal advice. You should also be prepared to negotiate some of the terms in the agreement.
