Terms of an employment contract define the rights and obligations of the employer and employee. They must comply with the minimum standards set in the Canada Labour Code (Federally regulated workplaces) or Employment Standards Act (Provincially regulated workplaces), and common law. These terms can be expressed, implied, or incorporated by reference to the employer’s policies and manuals.
Expressed Terms
Expressed terms are written directly into the employment contract and are acknowledged and signed by both the employer and employee, establishing the contractual relationship between the two parties. Typical expressed terms include:
- Commencement date
- Hours of work
- Job responsibilities
- Salary or wage rate.
- Bonus or incentive plan
- Insurance
- Vacation entitlement
- Leaves of absence
- Confidentiality
- Termination obligations
Implied Terms
Implied terms are not physically written into the contract; however, they are seen by the courts as the foundation or building blocks of the employment contract. Every contract contains them as a matter of law to ensure fairness and smooth functioning of the employment relationship. The employer and employee have different implied terms.
Employer implied terms include:
- Supply work and a workplace
- Give reasonable and lawful instructions
- Pay compensation
- Maintain safety
- Act in good faith
- Treat employee with respect & dignity
- Provide reasonable notice of dismissal
Employee implied terms include:
- Obey employer
- Attend work on time
- Perform work competently
- Conduct oneself appropriately
- Demonstrate loyalty and good faith
- Maintain confidentiality
- Avoid conflicts of interest
- Provide reasonable notice of dismissal
Incorporated by Reference
Policy manuals set out guidelines and procedures in a wide range of routine and administrative areas. An employer cannot implement policies and procedures that unilaterally emend fundamental terms of the employment contract without the employee’s consent. In order for a policy to be enforceable it must be:
- Consistent with terms of applicable employment agreements and the law
- Reasonable in terms of what actions are required by the employees
- Clear and unequivocal as to what steps are required by employees to comply
- Adequate notice of upcoming changes to the policies given to employees
- Consistent application of enforcement from the time the policy is implements
Connect With Suzanne Desrosiers Professional Corporation
If you are looking for guidance or have any questions about drafting, reviewing, or signing an employment contract, please feel free to reach out to Suzanne Desrosiers Professional Corporation by calling us at (705) 268-6492 or emailing us at info@sdlawtimmins.com and we would be more than happy to help!