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ARTICLE · 23 SEPTEMBER 2024

Navigating Fixed-Term Contract Risks: Essential Lessons For Ontario Employers

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Are you an employer using fixed-term employment contracts and wondering how to avoid costly legal pitfalls?

CanadaEmployment and HR
Filip Szadurski
Filip Szadurski

Are you an employer using fixed-term employment contracts and wondering how to avoid costly legal pitfalls? Ontario's recent Steele v. City of Barrie decision provides key insights on how to use FTECs effectively, minimizing risks like paying out full contracts or unintentionally creating indefinite-term employees. Here's what you need to know.

Fixed-term employment contracts (FTECs) in Ontario are agreements with a set duration, specifying the start and end dates of employment. These contracts are commonly used when employers need to hire employees for specific projects or temporary roles.

The recent Ontario decision in Steele v. The Corporation of the City of Barrie, 2022 ONSC 7245 ("Steele") has expanded the case law surrounding FTECs and outlined principles that may help protect employers from potential liabilities. Employment lawyers are well aware that FTECs can pose significant risks for employers if not properly drafted. Without a

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