Terminations & Severance
Guidance on structuring individual dismissals and severance packages to minimize legal exposure.
Learn more Employment Contracts & Policies
Employment contracts and policies lawyer for employers.
A well-drafted employment agreement is the cheapest insurance an employer can buy, and a poorly drafted one is a liability waiting to surface at termination. We draft contracts and policies built to protect your business when it matters.
Book a consultation
We'll respond quickly, and help you understand your options
Employment Contracts in Ontario
Your contracts are your first line of defence
The employment agreement you put in place at hiring determines much of your legal exposure years later. Without an enforceable written contract, a dismissed employee's entitlement defaults to common law reasonable notice, which can run to many months, or even up to 24-26 months or more, of total compensation. A properly drafted agreement can limit that exposure; a flawed one leaves it wide open.
The termination clause is everything
The most valuable provision in any employment contract is the termination clause, because a valid one can cap your severance obligations to the Employment Standards minimums. But Ontario courts scrutinize these clauses closely, and the bar to enforce them is high:
Under current Ontario law, if any part of your termination provisions violates the Employment Standards Act, 2000, even a "with cause" clause you never expected to rely on, the entire termination clause can be struck down, sending you back to full common law exposure. A severability clause generally won't save it. One outdated sentence can undo the whole protection.
Beyond the contract: policies
Well-drafted workplace policies reduce disputes and protect you if a decision is ever challenged. Depending on your size and workplace, these can include:
- Workplace harassment and violence policies (required under health and safety law)
- A written electronic-monitoring policy (required for employers with 25 or more employees)
- Accommodation, leave, and attendance policies
- Codes of conduct, discipline, and performance-management frameworks
- Confidentiality, intellectual property, and (where appropriate) non-solicitation provisions
Keeping contracts current
A contract that was enforceable when signed can become outdated as the law shifts or as an employee's role changes. Promoting a long-tenured employee without a refreshed, properly-considered agreement can leave you relying on a contract that no longer reflects, or binds, the relationship.
How we help
- Draft enforceable employment agreements, codes of conduct, bonus plans, executive compensation agreements, and other agreements or letters
- Review and modernize your existing templates and termination clauses
- Prepare the workplace policies your business is required to have, and the ones that protect you
- Advise on updating contracts at promotion or role change
Employment Contracts & Policies FAQs
Common questions about contracts and policies.
Practical, Canadian-law guidance for employers building contracts and policies designed to hold up, across Ontario and Canada.
Yes, a properly drafted contract is one of the most effective ways to limit an employer's liability on termination and clarify expectations from day one. Without one, a dismissed employee's entitlement defaults to common law reasonable notice, which can far exceed the statutory minimums.
It has to comply with the Employment Standards Act, 2000 in every respect. Ontario courts have held that if any part of the termination language falls below the ESA, including a "with cause" provision, the whole clause can be void. Careful, current drafting is essential, and older clauses often don't survive scrutiny.
Some are legally required, such as workplace harassment and violence policies, and a written electronic-monitoring policy for employers with 25 or more employees. Others aren't mandatory but significantly reduce risk. Which ones you need depends on your size and workplace.
Yes, but it has to be done correctly. The employee must be given new consideration for signing the updated agreement, such as an enhancement to their base salary, a signing bonus, etc. Simply presenting a new contract to a current employee without proper consideration can make it unenforceable. This commonly comes up at promotion time, and getting it right matters.
Consultation
Ready to protect your business?
We'll review your contracts and policies and tell you plainly where you're exposed.
Get In Touch
Tell us what's going on.
Fill out the form and we'll get back to you as soon as we can.
Submitting this form does not create a solicitor-client relationship. Please avoid sharing highly sensitive details until we've connected.