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Employment Contract Review: How to Negotiate Better Terms
March 8, 2025 Leslie Smith

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:
- 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.
- 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.
- 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.
- 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:
- Pre-negotiation review of industry standards
- Prioritize your requests (establish what's must-have v. nice-to-have)
- Phrase requests as solutions to employer issues
- Be professional and collaborative every step of the way
- 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.
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