An employment contract is an agreement that legally binds the working relationship between the employer and their employees. Typically, an employee contract states the job title, duties, compensation, and geographic work location. The contract also outlines employee rights and employer obligations, such as vacation pay, grounds for termination, and a confidentiality clause.
As an employer, it is your obligation to meet the minimum standards of employment as regulated by the Employment Standards Act (ESA). This means, your employment contract must include the basic terms and conditions for minimum wage, vacation and holiday pay, work hours, leaves of absence, notice periods for termination, and severance pay.
When is an employment contract legally valid?
The employment contract is considered valid and enforceable under legal circumstances whether it be in writing, stated orally, or implied. It is advised to form the terms of employment with written documentation to avoid legal challenges in areas, such as termination.
In terms of physical documentation, employers are legally required to record and retain the following information for every employee:
- The employee’s name, address, and starting date.
- The hours worked by each employee each day and week.
- The employee’s date of birth (if under 18).
- The employee’s vacation records including vacation pay.
Why is documentation important?
Together, the contract of employment and the employee handbook provides a framework for the employment relationship and detail important procedures for both the employer and employee to follow.
These documents allow employers to inform staff about what is expected of them in their respective job roles, and also provide an opportunity to detail any benefits that apply to their employment. A contract of employment can be used as a key reference point if it is alleged that an employee has broken a rule or is in breach of contract.
When it comes to drafting your employment contract, we can be your extra set of eyes.
If your employment contracts need updating or review by professionals, you’ve come to the right place. We are fully serviced with the resources you need to feel confident when it comes to documentation, contract, procedures, and policies; it’s as if you had your own in-house HR team.
Contact Employer Line to speak to our experts at Peninsula. We offer free HR advice in addition to employer guides because we want to help save you time and money so that you can focus on growing your business! We’re available to help relieve you of any employee issues and concerns. Call our complimentary advice line today – 1(833) 247-3650.