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Employment Contract Review: Critical Clauses Every Canadian Should Understand

February 5, 2025 Leslie Smith
Professional employment contract review session with experienced Ontario lawyer

Employment Contract Review in Oakville

During my years of conducting employment contract reviews in Oakville, I have reviewed thousands of agreements. What impresses me most is how the employment contracts of today have been shaped to meet new realities in the workplace. From remote work policies to digital asset ownership, the complexity of these documents requires careful attention to detail. Let me share some insights from my practice that could help protect your interests.

Why Professional Employment Contract Review Matters

Gone are the days when employment contracts simply stated an annual salary. I often find clients surprised by the complex compensation structures in modern agreements. Just last month, I considered a contract in which the bonus structure had been worded in such a way as to ensure, in effect, no payment during the notice period. These are innocent-sounding terms, but as an employment lawyer, I would highly recommend paying great attention to such terms as "active employment" or "discretionary bonus," since they may have a great impact on your earnings.

Employment Contract Review: Termination Provisions

If there is one section that needs the most vigorous review of an employment contract, it is the termination clause. The 2023 Ontario Court of Appeal decision in "Rahman v. Cannon Design Architecture Inc." changed how we approach these provisions. I have seen countless contracts that wouldn't stand up in court simply because they failed to meet basic Employment Standards Act requirements.

Key Termination Clause Checklist:

  • Meets minimum statutory requirements
  • Addresses benefit continuation
  • Outlines severance calculations
  • Bonus treatment included

Out-of-Office Work Arrangements in Your Employment Contract Review

The pandemic permanently shifted how all of us think about flexibility in the workplace. I also see many disputes arising related to remote work arrangements due to less-than-clear terms in a given contract. A recent example from my practice involves a client who did not address in her contract who was expected to cover home office equipment-the proverbial small oversight leading to unnecessary heat being generated.

Employment Contract Review: Intellectual Property Clauses

Having reviewed countless employment contracts, I have mediated many disputes related to intellectual property rights in the digital age. One case that comes to mind is that of a social media manager who created a huge following for their employer's accounts and was uncertain about post-employment restrictions. Modern contracts need to clearly define digital assets and ownership.

Critical Areas of Employment Contract Review: Restrictive Covenants

Ontario's Working for Workers Act, 2021 revolutionized how we handle non-compete clauses. I recently helped a client navigate these changes when their employer tried to enforce an outdated non-compete agreement. A proper employment contract review would have identified this issue before signing. Remember, most non-compete clauses are now void in Ontario, with very few exceptions for executive positions.

Modern Employment Contract Review: Technology and Privacy

The digital workplace has brought about new challenges in employment law. Recently, I had to advise a company implementing employee monitoring software-perfect example of why technology clauses matter. Your contract should clearly outline expectations about digital privacy and monitoring.

Key Technology Considerations:

  • Consent to electronic monitoring
  • Personal device policies
  • Data protection responsibilities

Expert Employment Contract Review: Industry-Specific Considerations

Different industries, different challenges. In technology, I am usually negotiating IP rights. Sales positions have their commission structures that need review. Healthcare professionals need special attention to patient confidentiality provisions. Your industry's specific requirements should shape your employment contract review process.

Professional Employment Contract Review: Next Steps

As your employment attorney, I cannot impress upon you enough how important this is: professional contract review. Leslie J. Smith Law offers the service of employment contract review that will protect your interests as well as assure you understand each component of your agreement. Don't let unclear terms impact your future – contact us at 905-257-7714 for expert guidance before signing your next employment contract.

Remember, an employment contract is not just a formality-it's the basis of your future professional relationship and rights. Let's make sure it serves your interests as well as your employer's.

Please fill out the form to begin a discussion with Leslie today:





Core Beliefs

I strive each day to live and work by one principle - treat others as I would want to be treated. In my practice, that translates into 4 key values:

I do what I say I will do and I am honest and transparent at all times with clients, staff, opposing counsel, the court and anyone else. I provide my clients with an honest assessment of their case. If I make a commitment to a client, I keep it. Integrity also means that my clients know before they retain me what my fee structure is. If a client appears unsure of whether or not to retain me or what to do, I tell them to go home and think about it first.

Integrity

Employees having difficulty at the workplace are often in considerable emotional distress when they arrive at my office. Employers can be as well. Employment issues involve human interactions, which necessarily involve emotions that sometimes need healing. I enjoy helping my employee clients think and feel differently about their situations. I also enjoy helping employers understand that their employees need to be treated with respect, dignity, kindness and fairness, no matter what is going on.

Compassion

I have an organized and logical mind that works like a trip hammer, especially in court. I can very quickly sort out the relevant facts and issues in order to resolve my client's cases efficiently. Excellence also means to approach matters with a large measure of practicality, always thinking about what is best for my client and their family and/or business. Finally, excellence also means behaving with civility. I have learned to be hard on the issues and soft on the people - a winning combination.

Excellence

I have also been blessed with discernment and intuition that allows me to often "know" what is really going on with my clients. Equally, my own life journey has led me through difficulties in personal relationships so I understand how upsetting a broken employment relationship is. My own struggles married with discernment and intuition allows me to treat my client holistically, not just legally. This is the thing that sets me apart from most other lawyers, so say my clients.

Wisdom