If followed, a recent Ontario case could result in the elimination of many specific penalty clauses in employment contracts. A specific penalty clause states that if an employee engages in a specific behaviour then the employee agrees s/he can be terminated for just cause without any notice or termination pay in lieu of this notice.
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”
In Ontario, employers are required to provide employees with reasonable advance notice of their dismissal (or payment in lieu thereof). This requirement applies unless the parties have agreed in writing for the employer to provide an alternate lawful entitlement. To qualify as an alternate lawful entitlement, the language must comply in all circumstances with the minimum requirements of the Employment Standards Act, 2000.