Starting a new job? Here’s how an employment contract could limit your rights

With recent jobless numbers dropping dramatically, and economists now declaring that the COVID recession is over, many individuals will be starting new jobs in the coming months. A new job means a new employment contract – a document that lays out the details of an employee’s pay, responsibilities, workplace policies, and more.

An employment agreement usually outlines the terms of the relationship between an employee and an employer, and what could happen if they’re ever let go. It can also limit your future opportunities, from how much severance you get, to whether you can start your own business when you leave your employer. Discover how to protect yourself when preparing to sign a new employment contract.

Can my employment contract limit my severance?

Many employment contracts contain terms related to the circumstances under which an employer can end the employment relationship.  In most circumstances, when a non-unionized employee is let go they are entitled to severance.  Some termination clauses are worded to attempt to limit the amount of severance pay you are entitled to when you’re job is terminated. Since some of these clauses may not be valid, if you are let go you should speak to an employment lawyer at Samfiru Tumarkin LLP. You may still be able to get all the severance you are entitled to, which can be as much as 24 months’ pay.

What is a non-compete clause and how can it impact my future?

Depending on the industry you’re working in, a non-compete clause could be standard fare. It’s also something to watch out for since a non-compete clause can stop a former employee from working for a competitor or starting their own business after leaving a job. This could also apply while you are still working for your employer. However, you can take comfort in the fact that many non-compete clauses are very difficult to uphold as they can prevent people from earning a living.

How long can I be placed on a probationary period?

For almost every job an employee will find that they’ll have to go through a probationary period before their employment becomes permanent. Probation generally lasts three months, but you should watch out for employment contracts that try to extend that period. If your employer tries to extend your probation in your contract, they must explain how you will be evaluated during that extended period. Most importantly, even if you’re subject to an ‘extended’ probationary period, you’re still owed severance if you’re let go after three months.

Am I better off not signing an employment contract?

Even if you are not presented with an employment contract when you start your new job, a verbal employment agreement can still govern your relationship with your employer. Believe it or not, this sort of agreement could actually be more favourable to you than having a written employment contract. In our experience, employers rarely present employment contracts that are favourable to employees. If you are presented with a written employment contract, your employer is likely asking you to give up some of your workplace rights.

An employment lawyer can help

That’s why if you’re starting a new job and you’re asked to sign a written employment agreement, the first thing you should do is have it reviewed by an employment lawyer at Samfiru Tumarkin LLP before you sign. An employment lawyer can explain how your contract will impact your rights, and help you negotiate a more beneficial agreement. Take advantage of our decades of experience protecting the rights of employees and contact the most positively reviewed law firm in Canada today.