A contract of employment is a crucial step in your professional life. You must understand the key terms to avoid future conflict and protect your rights.
Probationary Period
During probation, your employer has a trial window to determine your suitability for the role. Usually, this period lasts three to six months, depending on the industry. Your employer is more flexible to terminate your employment without notice or severance. Hire a Toronto employment lawyer if you have to deal with such instances.
However, you must achieve specific performance metrics to pass the probation successfully. Know when and for how long to avoid surprises. If terminated during the probation, you might not be entitled to severance pay, so knowing your rights upfront is essential. Talk to an employment lawyer in Toronto if unsure.
Overtime Compensation
Overtime policies affect your paycheque. You should also know when you are eligible for overtime, usually paid at 1.5 times your regular wage for hours worked above 40 each week. Make sure your contract is clear on these rates and the hours of work you’d put in. You should also remember that local labour laws exempt some managerial or professional positions from paying overtime. This is why reviewing to see if your role is exempt is essential.
Expense Reimbursement
If you are in a role where you have to travel or go to other locations for work, make sure you know what you can and cannot get reimbursed for. Eligible expenses are usually defined in contracts such as transportation or accommodation. Understanding how to submit claims, including the required documentation and when, is essential. This can lead to out-of-pocket expenses, all due to miscommunication.
Confidentiality and Non-Disclosure
The standard in employment contracts is confidentiality clauses to protect sensitive company information. These clauses often go on long after your period of employment. You will need to decide on the scope of the confidentiality, including what is confidential information and how long you are expected to keep it confidential. There may be exceptions where you can disclose such information to the authorities under legal requirements, so knowing about them is essential.
Non-Compete and Non-Solicitation Clauses
Non-compete clauses restrict you from working for competitors after leaving the company within a specific geographic region for a specified amount of time. You must decide whether these restrictions are reasonable and necessary to protect the employer’s legitimate interests. They should not be too broad or too wide to allow you to earn a living. While non-solicitation agreements will restrict your ability to poach clients, they are less restrictive than alternatives.
Intellectual Property
Intellectual property (IP) clauses in creative roles mean you own any work or inventions you create while employed. Some contracts require you to give the employer the IP rights. Figuring out if this applies and under what circumstances is important, especially if you plan to work on side projects or freelance in your spare time.
Severance Pay
Termination clauses state whether you are entitled to severance pay and when. For termination without cause, the employer may have to give notice in advance or pay instead of notice. But because terminations often do not come with any severance benefits, it is essential to talk to a Toronto employment lawyer and know precisely the terms of these exceptions.
Employment contracts are legal documents. Before signing, consult an employment lawyer to protect your rights, as the clauses may not align with your interests and legal entitlements.
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