Basic Employment Contract
A standard employment contract covering position, compensation, hours, termination, and confidentiality obligations.
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A basic employment contract is a written agreement between an employer and an employee that sets out the fundamental terms and conditions of employment. While employment can exist without a written contract, a clear written agreement protects both parties by documenting expectations, compensation, hours, and the process for ending the relationship.
What it should cover
A complete employment contract should address: job title and description; start date; compensation (salary or hourly rate, payroll frequency); hours of work; benefits and vacation entitlement; probationary period; confidentiality obligations; ownership of work product created during employment; and a termination clause that defines the notice or severance the employee is entitled to receive.
Termination clauses
The termination clause is often the most legally significant part of an employment contract. A properly drafted clause can limit an employer's liability on termination to the minimums set by the applicable provincial employment standards legislation. A poorly drafted or missing clause may entitle the employee to significantly greater common law notice — sometimes months or years of pay.