Custom Employment Agreements for Canadian Small Business

An employment agreement is the most important legal document that governs the relationship between your business and an employee. It confirms the meeting of the minds and puts in writing clear terms and conditions of employment so everyone is on the same page.

It can also act as the 'prenup' that's executed when the relationship is going well and contractually outlines what happens when things don't work out. Without it, you're at the mercy of court judgments which usually favor the employee.

Clearly articulating employment terms and conditions, and requesting confirmation that the employee understands and signs off on them:

• Acts as a 'pre-nup' in the employee-employer relationship to outline what's expected from each party during the employment relationship and what will happen once you part ways. It's an agreed-upon set of rules that's established when both parties are on good terms and in the honeymoon phase.
• Ensures that an employee knows what they can expect from your company.
• Ensures that the employee's terms & conditions are in writing so there are no misunderstandings. The agreement clearly indicates that any oral promises or previous arrangements are null and void once the employee signs the contract.
• Years, even weeks down the road, the parties often forget what they agreed upon and having your terms in writing is critical.
• Employees are much more likely to respect your house rules when they've signed an employment agreement.
• Helps to ensure protection of your company. If an employee situation ends in litigation, you'll have a much better chance in court if you have your terms and conditions clearly laid out.
• Helps to protect your company against theNOTMICS.
• If used in conjunction with and if you include and attach your employee handbook as an addendum, you'll be clearly articulating conduct policies and expectations before the employee is hired that provides another layer of clarity and protection for your business

If you don't use employment agreements when employees are hired:

• You are at the mercy of common law which highly favors the employee. For example, if you don't have a termination clause, your liability for terminating an employee may be very high when compared to a contained liability if it's pre-determined in the employment agreement.
• Consequences for misconduct are not clearly articulated.
• If your rules and do's and don't's are not clearly laid out, you can't expect that employees will 'just know' as the courts will often conclude.
• Your company confidential information is at risk.
• You may be liable for overtime pay.
• Without a contract, the employee may claim that you promised them a bonus or other compensation.

We're happy to work with you to add additional clauses not included in the list above. Tell us which clauses you'd like to add and we'll provide you with a quote.