Employers who seek to impose more rigorous oversight of new employees and minimize termination obligations to those employees can rely on appropriately drafted probationary limitations in their offers.
Employers generally owe their employees common law reasonable notice upon termination without cause. However, as shown in a recent Ontario Court of Appeal case, Nagribianko v. Select Wine Merchants Ltd, if the parties agree to a probation period in an employment contract, the right to common law reasonable notice can be ousted if the employee is terminated within the probationary period.
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.