Chapter 13: Employee Rights and Discipline

Negotiating A Formal Employment Contract

As discussed in Chapter 4, Canada is experiencing rapid growth in the number of people working as temporary or contingent employees. It is likely that you will be a temporary employee sometime in your career. The terms of your employment may be spelled out in a contract. If you are negotiating a formal contract, you should consider the following aspects of your employment:

Job description. Is it fixed or subject to change?

Duration. If you are negotiating for a term contract with a fixed termination point, can it be renewed? If so, what are the procedures for renewal?

Salary. Are performance-related bonuses part of the compensation package?

Penalties. Are both parties subject to penalties resulting from breach of contract?

Benefits. What, if any, are provided? The longer the contract, the more likely it is that if the employer terminates it will include benefits.

Termination provisions. What notice, or pay in lieu of notice, is required if the employer terminates the contract in advance of the negotiated expiry date? Note that the employer is entitled to terminate for just cause, such as serious misconduct.