Employment Contracts: Leave No Room For Interpretation!

What You Need To Know

In the case of Rice v Shell Global Solutions Canada Inc, the majority of the Alberta Court of Appeal emphasized the importance of clearly identifying the term of an employment contract and the parties' obligations and entitlements on termination.

This case is an important reminder to parties to be diligent when drafting, negotiating, or entering into employment contracts. While the beginning of an employment relationship is a time of excitement and positivity, it is essential to contemplate the core terms of the contract, such as the length of employment as well as what the parties intend to occur if the relationship must come to an end. Significantly, as indicated in this case, it is also important for parties to step back and consider whether the language of the contract clearly reflects their intentions.