Business owners come to us when they want properly drafted enforceable employment agreements that are valid if and when they are needed.
Finding agreements online is dangerous and leads to many employment relationships being not properly defined – inviting litigation and uncertain outcomes when it comes to litigation. Drafting Employment Contracts is complex and requires serious attention – 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.
For example, if we have an employee who is 60 years old, who makes 80k per year, and who has worked with the company for 6 years, consider these two scenarios:
(1) Without a valid contract: an employee may be entitled to anywhere between 5 months to 12 months.
(2) With a valid contract: that same employee may be entitled to only 6 weeks – the minimum entitlements under the Employment Standards Act
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”).
Without an enforceable employment agreement, your exposure may be much higher. 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.
To discuss your matter with us call:
For Toronto: (647)946-6440
For Ottawa: (613)699-0018
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