Drafting Employment Contracts is complex and requires serious attention – because the stakes are high.
When employees sign an employment contract, employers should be careful about the terms they put in that contract. An enforceable contract limits your exposure as an employer and costs you considerable sums in litigation if not drafted properly.
In the event of termination, the court will first look at the employment contract to determine what the terminated employee is entitled to. If the contract is enforceable, and the drafter limited termination notice to minimum entitlements under the Employment Standards Act then, as an employer, you may only have to pay up to 8 weeks of termination pay (which is different than “Severance”).
If the employment contract is unenforceable or the contract is vague, employers may have to pay significantly more notice than they would like.
Employers should make sure that their employment contracts are carefully drafted and reviewed in order to limit their obligations to the Employment Standards Act.
To have your existing employment contracts reviewed, if you want them modified, or if you would like new employment contracts drafted, contact us today.
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