Employment contracts in Ontario are governed by provincial law. While many employers rely on written agreements to define job terms, not every employment contract — or every clause — is legally enforceable.
If you work in Ontario, your rights depend on Ontario employment standards and court decisions, not just what a contract says on paper.
What Is an Employment Contract in Ontario?
If you work in Ontario, your rights depend on Ontario employment standards and court decisions, not just what a contract says on paper.
An employment contract is an agreement between an employer and an employee that sets out the terms of employment.
In Ontario, an employment contract may be:
- Written
- Verbal
- Implied by conduct or workplace policies
Even without a signed document, an enforceable employment contract may still exist.
How Ontario Law Affects Employment Contracts
Employment contracts in Ontario must comply with the Employment Standards Act (ESA) and Ontario common law.
An employment contract can’t:
- Provide less than ESA minimum standards
- Remove basic employee protections
- Rely on unclear or misleading language
If a contract violates the ESA — even potentially — courts may refuse to enforce it.
Are Employment Contracts Enforceable in Ontario?
Ontario courts regularly strike down contracts or clauses that fail to meet legal requirements. A contract may appear valid but still be unenforceable if it attempts to limit rights in ways the law does not allow.
Common issues include:
- Termination clauses that provide less than ESA minimums
- Probation clauses that improperly eliminate notice
- Overly broad non-compete clauses
- Fixed-term contracts that are not clearly defined
Each clause must be assessed individually under Ontario law.
Common Employment Contract Clauses in Ontario
Employment contracts in Ontario often include clauses that directly affect severance and post-employment rights.
Termination Clauses
Termination clauses in Ontario attempt to limit notice and severance when employment ends. These are frequently unenforceable if they don’t comply with the ESA.
Probation Periods
Probation periods in Ontario are often misunderstood, and a poorly drafted probation clause may not eliminate an employee’s right to notice.
Non-Compete and Non-Solicitation Clauses
Non-compete and non-solicitation clauses restrict post-employment activities and are closely scrutinized by Ontario courts.
Fixed-Term Employment Contracts
Fixed-term contracts in Ontario can limit severance rights if properly drafted — but many are not.
Independent Contractor Agreements
Some contracts misclassify employees as independent contractors in Ontario, affecting termination and compensation rights.
Each of these clauses should be reviewed carefully under Ontario law.
When Should You Review an Employment Contract in Ontario?
You should review an employment contract before relying on it in key situations, including:
- Before signing a new job offer
- When your role, pay, or duties change
- When asked to sign a new agreement mid-employment
- After termination or layoff
Once relied upon, an employment contract can significantly affect your severance and legal options.
Get Advice About an Employment Contract in Ontario
Employment contracts can limit your rights in ways that are not always obvious.
Before signing — or assuming a contract controls what you’re entitled to — it’s important to understand how Ontario employment law applies to your situation.
Speaking with an employment contract lawyer in Ontario can help clarify whether a contract or clause is enforceable and what the law actually requires