Employment Contracts
What is an employment contract?
An employment contract sets the terms of your working relationship, including duties, compensation, benefits, hours, and how the relationship may end. Contracts can be written, verbal, or implied through conduct and policies, and many handbooks or plans are incorporated by reference even if they’re not attached. Clear, well-drafted terms reduce disputes, align expectations, and improve the chances that important provisions will be enforceable.
Why have your contract reviewed or drafted?
A proactive review helps you understand risks and opportunities before you sign or change terms. It can prevent costly disputes and give you a strategy for negotiation. Key moments for a review include a new hire or promotion, a change to compensation or title, a move to remote or hybrid work, or when buying or selling a business.
Key clauses we review and draft
• Termination and severance provisions
• Probation periods and how they operate
• Duties, title, reporting structure, and scope of role
• Compensation structure (base pay, variable pay, bonuses, commissions)
• Benefits, vacation, and PTO treatment
• Bonus and commission plan language, including discretion and eligibility
• Hours of work, overtime eligibility, and scheduling
• Work location, remote/hybrid terms, relocation, and travel expectations
• Temporary layoff language and other major change provisions
• Confidentiality, intellectual property, inventions, and moral rights
• Restrictive covenants (non-solicitation and non-competition)
• Conflict of interest, confidentiality, privacy, and workplace monitoring
• Equity and incentive plans (options, RSUs) and how they interact with termination
• Policies incorporated by reference and how they can be amended
Fixed-term vs. indefinite employment
Fixed-term agreements can appear simple, but early termination can lead to significant exposure if not properly addressed.
Automatic renewals or back-to-back fixed terms can also create risk. Careful drafting and documentation are essential.
Independent contractor vs. employee
Titles are not determinative. How the work is controlled and performed often matters more than what the agreement calls the relationship. Misclassification can affect pay, taxes, benefits, and legal protections.
Changing terms after hire
Major changes to essential terms may require consent, appropriate notice, or fresh consideration. Put agreed changes in writing and ensure the documents are consistent with any policies and plans.
Our Ontario-focused services
For employees: pre-sign reviews, negotiation support, and advice on proposed changes or disputes arising from contract terms.
For employers: custom drafting, compliant templates, plan and policy alignment, and manager training on contract implementation.
Our process
Intake and document review: we confirm jurisdiction, timelines, and your goals.
Risk assessment and options: we flag issues and discuss leverage, alternatives, and next steps.
Drafting and negotiation: we revise language, propose changes, and support negotiations.
Finalization and next steps: we confirm the written terms match the deal and outline practical follow-through.
FAQs
Do I need a written contract?
Yes - written terms provide clarity, reduce misunderstandings, and make it easier to manage changes over time.
Can my employer change terms later?
Some changes require your consent or appropriate notice. Get advice before you agree, refuse, or sign anything.
Are non-competes enforceable?
Non-competition clauses are heavily restricted in Ontario employment relationships. Alternatives like non-solicitation and confidentiality provisions are more common. Get advice on what’s appropriate for your situation.
What if I’m on a fixed-term and get let go early?
Early termination of a fixed term can lead to significant liability depending on the wording and the facts. The details matter - get advice promptly.
How long does a review take?
Once we have your documents, many reviews are completed quickly, but timing depends on complexity and negotiations.
Speak with an Ontario employment lawyer
Book a confidential consultation to understand your options in clear terms so you can decide how to proceed. You’ll get practical guidance on risks, timelines, and next steps.