Employment agreements

Things to know

  • Employment agreements can be either verbal or in writing and for an indefinite term or fixed term. 
  • Employees must be provided with at least their minimum statutory entitlements in respect of terms and conditions of employment as set out in applicable provincial employment standards legislation. 
  • Written employment agreements are recommended at least if compensation terms are more complex, (for example, benefit and pension terms, if provided, should be set out in an agreement). 
  • Neither private benefit insurance or pensions are mandatory entitlements. 
  • Restrictive covenants, like non-competition provisions, non-solicitation provisions, confidentiality, and intellectual property protections need to be in writing. To be enforceable, non-competition and non-solicitation provisions must be drafted narrowly.

Things to do

  • Review your template employment offers and full agreements to ensure they are in compliance with Canadian law (for example, references to ‘at-will’ employment must be removed as this concept is not recognized in Canada). 
  • Review your compensation structure and model, including incentive compensation and benefits, to ensure competitiveness in the market. 
  • Consider if you want to establish restrictive covenants or severance provisions and, if so, carefully draft them with legal counsel to ensure, to the extent possible, enforceability. 
  • If you want to hire foreign workers, such workers typically must apply for a work permit. Any employment agreement drafted for such foreign workers must be consistent with representations made in the application for the work permit.

Canada Company Registration

Company Formations Canada offers fast and easy company registration in Canada for non-Canadian residents and foreign companies wishing to operate and do business in Canada.

Register a new company in Canada as a non-Canadian resident


Register a foreign company in Canada


Canada Registered agent services for foreign companies and non-Canadian residents.


Canada Nominee director services for foreign companies and non-Canadian residents.

Shared from: Osler, Hoskin & Harcourt llp Publication

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