Does your organization provide equity compensation to employees? Stock options, restricted stock units, stock purchase plans, and performance shares are just some of the possibilities. Whatever the form, equity compensation has grown increasingly popular. This fact has also spurred greater employment litigation concerning equity entitlements.
Enforceable termination clauses are one of the best benefits an employer can get out of entering into a written employment agreement with an employee. While an employer likely hopes that they’ll never have to terminate an employee, that won’t likely be the reality for any longstanding business.
Canada’s unemployment rate is very low at the moment and employers in many different industries are therefore finding it very difficult to fill vacant positions.
Enter the typical employment contract which is usually one sided in favour of the employer. In the past, employees may not have read them too carefully and those that did typically held their collective noses and signed. Now employees are in a much better negotiating position.
So the question becomes: Does using your standard employment contract put you at a competitive disadvantage in a tight job market.
For example, how does a prospective employee in this job market view a probationary clause and do you really need one?
Similarly, how will many (perhaps most) potential job applicants react to an offer which requires them to attend at the office 5 days a week when they are now accustomed to working remotely?
Often an employer uses … Continue reading “Impact of employment contracts on hiring in a tight job market”