Starting a new job is an exciting opportunity, but before you sign on the dotted line, it’s crucial to thoroughly review your employment contract. This document outlines the terms of your employment and has a significant impact on your rights and responsibilities. Here are the key clauses to understand and evaluate before you commit.

1. Job Title and Responsibilities

Ensure that your job title and a clear description of your duties are included in the contract. Ambiguity in your role can lead to misunderstandings about expectations and performance reviews. If your responsibilities evolve over time, these changes should be documented in writing.

2. Compensation and Benefits

Verify that the contract clearly outlines your salary, bonus structure, and any additional benefits such as health insurance, retirement plans, or stock options. Take note of:

• Base Salary: Ensure it matches what was discussed during the hiring process.
• Variable Pay: Clarify terms related to commissions, bonuses, and profit-sharing.
• Payment Schedule: Check the frequency of payments (e.g., bi-weekly, monthly).

3. Probationary Period

Many contracts include a probationary period, during which your employment can be terminated with little or no notice. Understand the duration of this period and the rights you have during this time. Be aware that probationary periods must still comply with the Employment Standards Act, 2000 (ESA) in Ontario.

4. Termination and Notice Provisions

Review the clauses detailing how your employment can be terminated and what notice or severance you’re entitled to. Key points include:

• Termination Without Cause: Check if the notice period aligns with statutory and common law entitlements.
• Termination for Cause: Understand what constitutes “cause” and whether the definition is overly broad.
• Resignation: Note any required notice period if you choose to leave.

5. Non-Competition and Non-Solicitation Clauses

These clauses restrict your ability to work for competitors or solicit clients or employees after leaving the company. Ontario’s laws on non-competition agreements have recently changed, limiting their enforceability in many cases. However, non-solicitation clauses are generally enforceable if reasonable. Review these restrictions carefully to avoid future career limitations.

6. Confidentiality and Intellectual Property

Many contracts include clauses that require you to protect the employer’s confidential information and assign intellectual property created during your employment to the company. Ensure these clauses are fair and don’t overreach, especially if you work in a creative or technical field.

7. Work Hours and Overtime

Understand the expectations regarding your work hours. If overtime is expected, confirm whether you’ll be compensated and whether you’re classified as an employee who qualifies for overtime pay under the ESA.

8. Dispute Resolution

Some contracts include clauses requiring disputes to be resolved through arbitration rather than the courts. Consider whether this is in your best interest, as arbitration may limit your ability to pursue certain claims.

9. Flexibility and Relocation

Be cautious of clauses that give the employer broad discretion to change your role, work location, or compensation. These provisions could lead to significant changes in your employment without your consent.

Free Consultation with Ottawa Employment Lawyers

An employment contract is more than a formality; it’s a binding agreement that governs your relationship with your employer. Taking the time to understand its terms can prevent future disputes and ensure your rights are protected.

If you’re unsure about any aspect of your contract, consulting an employment lawyer can help you negotiate better terms and clarify your obligations. Please do not hesitate to contact our experienced Ottawa employment lawyers for a free legal consultation. Randy Ai Law Office can be contacted at (343) 321-0800 or fill out the contact form.

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