Including a probationary period clause in an employment contract is not a good idea unless your organization is prepared to assess the suitability of the employee during the probationary period. Failure to do so can result in your organization being ordered to provide a probationary employee with common law reasonable notice of termination. This blog discusses one such case.
Notice of termination
Some employment contracts have termination clauses which state that an employee will receive notice of termination “in accordance with the Employment Standards Act” or words to that effect. The purpose of this clause is to take away the employee’s right to common law “reasonable” notice of termination. In 2000 an Ontario Superior Court judge concluded that this kind of language meant that an employer was only required to provide the employee with the minimum notice of termination stipulated in the ESA. Advantage employers.
Bonus plans in employment contracts are a great way to motivate, reward and retain employees. Many of these bonus plans have built–in conditions that must be met before these bonuses are paid out. For example, an employee must be actively employed at the time the bonus is paid. Increasingly, the courts are being asked to determine whether these conditions have to be met and whether a bonus is owing. A recent decision by the Ontario Court of Appeal will come as a surprise to many of you.