The Basics of Employment Contracts

Employment contracts — should you have them? If so, what form should they take? If not, what will become the terms and conditions of employment? What are implied terms? What types of provisions should be included? These are some of the many questions that arise when you make an offer of employment. The following answers these and other questions about employment contracts.

Q. When does an employer have an employment contract with its employees?

A. Every employer in Canada has an employment contract, whether written or unwritten, with each of its non-union employees. Sometimes, none or only some of the contract terms are in writing. Where necessary, courts will imply reasonable terms in the absence of any express agreement on the issue. For employees represented by a union, the contract terms are set forth in the union's collective agreement.