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Employment standards legislation (federally and provincially in Canada) set the minimum terms and conditions of employment that all employers must follow and cannot contract below. Employment contracts are imperative in Canada to set limits on employee entitlements. Otherwise, an employee can file a civil claim and pursue significant entitlements.
For example, without a valid termination clause in an employment contract, employees have recently successfully claimed up to 30 months of pay in lieu of notice. This liability is significant, especially when applied to a senior employee with significant total compensation.
Enforceable employment contracts are imperative for Canadian employers to control risk and manage the significant liability that employers can otherwise face, especially upon termination of employment. Employment contracts are read in favour of employees in Canada, so it is crucial that a knowledgeable employment lawyer draft the most important clauses, such as a termination clause, to manage risk.
Any clause within an employment contract that appears to contract below minimum employment standards can void the termination clause, even if not relied upon in the circumstances. This creates considerable risk for employers.
This webinar will highlight the key clauses within an employment contract and sources of liability for employers, along with best practices to avoid the most common errors that we see, which could result in significant liability for Canadian employers.