Employment Agreement Information
An Employment Agreement, also known as an Employment Contract, is a document used by an employer to outline employment terms for new employees. It includes the recruit's job title and responsibilities, compensation, hours, and more.
LawDepot's Employment Contract can be used in all Canadian provinces and territories.
What Types of Employment Does This Agreement Cover?
An employee can be classified according to how often they work and how long they are expected to stay with the company. This employee contract can be used for the following employment types:
- Permanent Full Time
- Permanent Part Time
- Fixed Period
- Flexible Employment
Full Time vs. Part Time: A full time employee works at least 30 hours per week, whereas a part time employee usually works fewer than that.
Permanent Employment vs. Fixed Employment: Permanent employment is indefinite with no end date, and fixed employment is a position with a firm end date.
Flexible Employment: This type of employment has adjustable hours where the employee may not be not restricted to working any set number of hours per day or per week.
Probationary Period in the Workplace
A Probationary Period refers to a duration of time in which an employer has the right to let an employee go without notice. This period is chosen by the employer, and can be anywhere from a month to several months depending on the jurisdiction. An employer does not need to include a probationary period in an Employment Agreement.
Types of Compensation
Compensation is the wage or salary employees receive from an employer in exchange for their work. Employees can be paid according to a variety of methods, including:
- Hourly wage: a dollar amount per hour of work (e.g. $18/hr)
- Weekly/Yearly salary: a dollar amount per week or year (e.g. $60,000/year)
- Commission: a percentage of profits or sales (2.5% per sale)
- Salary + commission: a dollar amount plus a percentage of sales ($45,000 + 2% of gross profits)
In addition to the type of payment, the employer should specify when the employee will be paid (once or twice/month on fixed days, bi-weekly, or every week), as well as if overtime is paid or if there is "time off in lieu", which means that for every extra hour an employee works, he or she may take an hour off.
Employment Agreements and Confidentiality
Employment Agreements often have confidentiality clauses, which means that all information at the company should remain private and is the property of the employers. The employee is prohibited from sharing this information during, and for a period after, their employment.
Other clauses in the Employment Contract can include:
- Non-Competition: the employee is restricted from competing directly with the business during their employment and for a set period after their employment is over.
- Non-Solicitation: this restricts the employee from hiring or enticing employees or contractors away from the employer during or after their employment.
Who Signs an Employment Agreement?
The employee and employer must both sign the employment contract to show that the terms within the agreement were read and understood.