Principal in the establishment and modification of employment contracts

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Offer acceptance and consideration

Some need to to be in writing
Offer must be firm and unequivocal
Can be subject to a condition precedent, if so, then both sides must act

Advantages of written contract

Well drafted written contracts have several advantages that include:

1) Reduced risk of misunderstanding
2) Potential conflicts addressed at start
3) Less uncertainty
The employment contracts checklist
1) Name of employer and employee
2) Job tittle, brief description, reporting relations
3) Start date and end date
4) Rate and calculation of pay and when paid
5) Terms and conditions re hour of work, benefits commencement and accrual
6) Any required notice of termination
7) Reference to any collective agreement
8) Ownership of inventions
9) Statement about applying organizational policies
10)
Details of work locations
11)
Salary review timeframes
12)
Restrictive covenants
Express terms
Express terms in employment contracts are generally specific for a point in
time , but
1) Parties cannot foresee all the contingencies that may play out over the
course of the emplouyment relationship
2) Position, brief description, basic pay, vacation, expected hours of work
3) May also include confidentially agreement, non- solicitation and non
compitaion issues.
Express contractual obligations
When obligations clearly expressed in the agreement the courts enfotce them
literally
But the courts may interpret the language contrary to the interests of the dominant
party if the clause is unduly onerous on the employee
If the terms are extremely one sided then the contract may be void due to
unconscionability and/or duress

When obligations are ambiguous the courts can rely on extrinsic evidence (e.g past
practice in interpreting the language)

Implied contractual obligations

Some of the most fundamental and enduring obligations owed by an employee to
an employer are not spelled out in a written employment contract
Obligation can be oral, written or some combination
These attest to the unexpected factual intentions of the employer and employee as
evidenced from all the surrounding circumstances
Past practices, pre-contractual negotiations, customs

Common contractual terms

1) Customize do not use single, standard contract for all employees; use
template with option to enable customization
2) Most jobs key terms found in letter of hire / final contract that expressly
incorporate employers policy manuals
3) Key terms include: names of parties, date contract begins, position, job
description, duration (if it is for a fixed term), compensation and termination
notice
4) For more senior or specialized jobs, a more formal customized contract is
advisable
Common contractual terms
1) Job description
2) Remuneration
3) Term-fixed or indefinite?
- No termination notice required if contract is for a fixed term and
employment ends at end of term (subject to employment standards)
4) Termination clause
- Better to deal with it now
- Clause can set out method of payment of termination pay
- May include notice of resignation requirement
- Clause can set out just cause to dismissal
5) Probationary period
- Opportunity to test the employees suitability
- Not implied by common law so must be specified in contract
6) Relocation: address issue if relevant
7) .
8) Restrictive covenants

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Important questions
1) Tort law
2) Contract law
3) Federal statues
4) Charted law
5) How to complaint or file ( legislation steps)
6) Remedies