As an employment lawyer practicing in Ontario for over two decades, I've encountered numerous misconceptions about Canadian employment law. These myths can lead to costly mistakes for both employers and employees. Today, I'm debunking the top 10 employment law myths to help you navigate workplace relationships more effectively.

Employment Law Myth #1: "Employment at Will" Exists in Canada

Perhaps the most pervasive employment law myth stems from American media influence. Unlike the U.S., Canada does not recognize "employment at will." This means Canadian employers cannot terminate employees without notice or cause. Instead, employers must provide reasonable notice or pay in lieu of notice when terminating employees without cause. The only exceptions are terminations for just cause, which have a very high threshold in Canadian courts.

Employment Law Myth #2: Severance is Only One Week Per Year of Service

Many Canadians believe severance equals one week per year of service. However, employment law in Canada establishes this as merely the statutory minimum in most provinces. Common law entitlements typically provide significantly more, often ranging from 3–4 weeks per year of service. Factors such as age, position, length of service, and availability of similar employment all influence severance calculations.

Employment Law Myth #3: Written Contracts Always Override Common Law

While written employment contracts are important, they don't automatically override common law principles. For employment law provisions to be enforceable, they must:

• Be clear and unambiguous
• Comply with minimum employment standards
• Provide valid consideration if added after employment begins
• Not be unconscionable or contrary to public policy

Courts regularly strike down termination clauses that attempt to provide less than statutory minimums.

Employment Law Myth #4: Probationary Employees Have No Rights

Many believe probationary employees can be dismissed without consequences. However, employment law protects all employees from day one. While statutory notice requirements may be minimal for short-service employees, human rights protections apply immediately. Additionally, if your contract doesn't explicitly include a probationary period, common law notice requirements may apply even to new employees.

Employment Law Myth #5: Independent Contractors Cannot Claim Employment Rights

The label "independent contractor" doesn't automatically determine your status under employment law. Courts look beyond titles to examine the true nature of the relationship. Factors include:

• Control over work methods
• Ownership of tools and equipment
• Opportunity for profit/risk of loss
• Integration into the business

Many workers classified as "independent contractors" are actually dependent contractors or employees entitled to employment law protections.

Employment Law Myth #6: Employers Can Make Unilateral Changes to Employment Terms

Significant changes to employment terms without proper notice can constitute constructive dismissal under Canadian employment law. Employers cannot unilaterally:

• Reduce compensation
• Substantially change job duties
• Relocate employees to distant locations
• Alter working hours significantly

Such changes may entitle employees to treat the employment relationship as terminated and seek severance.

Employment Law Myth #7: Workplace Harassment Must Be Reported Immediately

While prompt reporting is beneficial, employment law doesn't require immediate reporting of harassment. Many valid reasons exist for delayed reporting, including fear of retaliation, power imbalances, and trauma responses. Employers must investigate all harassment complaints, regardless of when they're reported.

Employment Law Myth #8: Only Formal Written Resignations Count

Contrary to popular belief, employment law recognizes various forms of resignation. Clear verbal resignations can be binding. However, heat-of-the-moment resignations may not be enforceable if retracted promptly. Employers should seek confirmation of resignation intent rather than immediately accepting emotional statements.

Employment Law Myth #9: Overtime Only Applies to Hourly Workers

Employment law overtime provisions apply to most employees, regardless of payment structure. Salaried employees are generally entitled to overtime unless they fall into specific exempt categories, such as managers with actual supervisory authority or certain professionals. Simply labeling someone as "manager" or paying a salary doesn't automatically exempt them from overtime requirements.

Navigating Employment Law Reality

Understanding these employment law realities helps both employers and employees make informed decisions. For employers, it means implementing compliant policies and practices. For employees, it means knowing your rights and when to seek legal advice.

At Leslie J. Smith Law, we provide comprehensive employment law guidance to navigate these complex issues. Contact us at 905-257-7714 for assistance with your specific employment law questions.

Remember, employment relationships are governed by a complex framework of legislation, common law, and contractual principles. When in doubt, consult with an employment law professional to ensure your decisions are based on facts, not myths.

I'm a career lawyer with over 36+ years as a lawyer in Ontario.

I've negotiated job contracts for hundreds of professionals and reviewed their job contracts. The truth hurts: the majority of Canadians leave a lot of value on the table with employment contact review and negotiated poorly. Let me share proven strategies to help you negotiate improved terms through effective review of job contracts.

Understanding the Psychology of Employment Contract Review and Negotiations

Most job seekers are uncomfortable negotiating their employment contracts. They are afraid of losing the job or being considered ungrateful. However, there is some degree of negotiation to be anticipated even from employers in Canada. In fact, most first offers still leave room for negotiation. Ongoing review of your employment contract is what the whole employer-employee relationship rests on.

Key Provisions Worth Scanning in Your Employment Contract

Salary and Compensation Structure

Base salary is only the tip of the iceberg when it comes to reviewing your employment contract. Look at these negotiable areas of compensation:

• Performance bonuses based on certain criteria
• Signing bonuses (particularly worth it today)
• Periodic pay reviews with defined parameters
• Commission arrangements with beneficial provisions

In a recent examination of an employment contract, I discovered vague bonus terms that could have set my client back thousands. By clarifying these terms, we negotiated measurable performance targets that guarded their interests.

Benefits Beyond the Basics

Most typical benefits packages leave some space for flexibility. Your examination of employment contracts should take into account:

• As employment contracts are examined, I primarily focus on benefit provisions.
• They are easiest to enlarge upon if specifically requested to do so by the employers.
• Another day off during vacation time is more coveted now to Canadian working professionals, who are pursuing increased work-to-life balance.

Reading List: Titles to Improve Your Employment Contract Review Skills

Prior to your next review of your employment contract, do your homework by reading these negotiation bestsellers that have changed the way I prepare for contract negotiations:

1. Getting to Yes by Roger Fisher and William Ury - The classic book establishes principled negotiation, enabling you to separate problems from people through your review of your employment contract.
2. Never Split the Difference by Chris Voss - Written by a one-time FBI hostage negotiator, this book is replete with tactical empathy techniques that are utilized very effectively while negotiating employment contracts.
3. Difficult Conversations by Douglas Stone - Extremely useful during negotiations with prospective employers, this book has blueprints for having difficult conversations regarding issues that arise while perusing employment contracts.
4. Ask for More by Alexandra Carter - This helpful guide is specifically devoted to question-based negotiation, a technique which I myself have found extremely helpful in questioning employment contracts whose terms are not defined.

These resources have helped numerous clients confidently and strategically navigate their questioning of employment contracts.

Strategic Approaches to Employment Contract Review

Timing Your Negotiation Effectively

The best bargaining position is when an offer has been made but not yet accepted. Here is where you are able to declare interest yet bargain conditions. Expert employment contract analysis at this point is a great bargaining tool.

Utilizing Professional Employment Contract Review Services

Having your employment contract reviewed by a lawyer prior to signing has numerous advantages. Through meticulous examination of your employment contract, we identify objectionable terms and suggest changes that benefit you. This is an investment that typically pays for itself many times over.

Negotiating Flexible and Remote Work Arrangements

The pandemic shifted perspectives towards the workplace. Your employment contract review should include:

• Work-from-home days
• Flexible work schedules
• Outcome-based performance measures
• Home office allowances

Be prepared to describe how the arrangements work to your advantage as well. Describe, for instance, how flexible working hours can improve your productivity or availability to global customers at odd hours.

Securing Your Future through Termination Clauses

Termination clauses should be given special scrutiny in reading employment contracts. They define your financial well-being if the relationship is cut short. Prepare yourself to negotiate:

• Notice periods of longer duration
• Severance pay increases
• Notice period stability of benefits
• Sympathetic definitions of "cause"

In my recent contract review, I encountered a termination provision with only stat minima. Negotiation added an additional month of notice for each year of service—massively improving my client's security.

Proven Employment Contract Review Strategies

Rigorously work through the employment contract review:

1. Pre-negotiation review of industry standards
2. Prioritize your requests (establish what's must-have v. nice-to-have)
3. Phrase requests as solutions to employer issues
4. Be professional and collaborative every step of the way
5. Put it in writing

Moving Forward with Confidence

Reading the employment contract isn't about winning at all costs—it's about creating a mutually beneficial relationship. By negotiating professionally and value-based, you position yourself to succeed.

At Leslie J. Smith Law, we provide full employment contract review services to walk you through these important negotiations. Contact me today at 905-257-7714 to learn how I can help you negotiate the best terms on your next employment contract.

The terms you negotiate today will determine your career for years to come. Invest the money in proper employment contract review to get it right.