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Limited Term Employment Contract for Canada

Limited Term Employment Contract Template for Canada

A Limited Term Employment Contract is a legally binding agreement used in Canada to establish a fixed-duration employment relationship between an employer and employee. This document outlines all essential terms and conditions of employment, including start and end dates, compensation, benefits, duties, and termination provisions, while ensuring compliance with federal and provincial employment standards. It provides clear parameters for temporary employment arrangements, whether for project-based work, seasonal employment, or temporary replacements, while incorporating necessary protections for both parties under Canadian employment law.

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What is a Limited Term Employment Contract?

The Limited Term Employment Contract serves as a fundamental document for establishing temporary employment relationships in Canada. It is particularly useful for project-based assignments, seasonal work, maternity leave coverage, or other situations where employment is intended for a specific duration. This contract type helps organizations maintain workforce flexibility while providing clear terms and legal protection for both employers and employees. The document must comply with both federal and provincial employment standards, including minimum wage requirements, vacation pay, statutory holidays, and termination provisions. It typically includes comprehensive details about the role, compensation, benefits, and specific duration of employment, while also addressing confidentiality, intellectual property rights, and early termination conditions.

What sections should be included in a Limited Term Employment Contract?

1. Parties: Identifies the employer and employee with their full legal names and addresses

2. Background: Brief context explaining the purpose of the fixed-term employment relationship

3. Definitions: Defines key terms used throughout the agreement

4. Term of Employment: Specifies the start and end dates of the employment period

5. Position and Duties: Details the employee's job title, responsibilities, and reporting relationship

6. Work Location and Hours: Specifies workplace location and expected working hours

7. Compensation: Details base salary, payment frequency, and any applicable deductions

8. Benefits: Outlines health benefits, insurance, and other employment benefits

9. Vacation and Leave: Specifies vacation entitlement and other types of leave

10. Confidentiality: Defines confidential information and employee's obligations regarding it

11. Intellectual Property: Addresses ownership of work product and intellectual property created during employment

12. Early Termination: Conditions under which the contract may be terminated before the end date

13. Return of Property: Requirements for returning company property upon contract completion

14. Governing Law: Specifies that the agreement is governed by Canadian law

15. Entire Agreement: Confirms the contract represents the complete agreement between parties

What sections are optional to include in a Limited Term Employment Contract?

1. Probationary Period: Include when the employer wishes to establish an initial evaluation period

2. Commission Structure: Include for sales positions or roles with performance-based compensation

3. Remote Work Provisions: Include when the role involves remote or hybrid working arrangements

4. Non-Competition: Include when necessary to protect legitimate business interests

5. Non-Solicitation: Include to prevent solicitation of employees or customers post-employment

6. Travel Requirements: Include when the role involves regular travel

7. Performance Metrics: Include when specific performance targets are part of the role

8. Bonus Eligibility: Include when the role includes potential bonus compensation

9. Training Requirements: Include when specific training or certification is required

10. Overtime Provisions: Include when overtime work may be required

What schedules should be included in a Limited Term Employment Contract?

1. Schedule A - Job Description: Detailed description of the role, responsibilities, and requirements

2. Schedule B - Compensation Details: Comprehensive breakdown of salary, benefits, and any variable compensation

3. Schedule C - Company Policies: Key workplace policies that form part of the employment terms

4. Schedule D - Confidentiality Agreement: Detailed confidentiality terms and restrictions

5. Schedule E - Benefits Summary: Detailed description of all benefits and eligibility requirements

6. Appendix 1 - Required Certifications: List of required professional certifications or qualifications

7. Appendix 2 - Approved Expenses: Guidelines for expense reimbursement and approval process

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Ƶ

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions



































Clauses



































Relevant Industries

Technology

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Relevant Teams

Human Resources

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Finance

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Executive Leadership

Relevant Roles

Project Manager

Research Associate

Seasonal Worker

Contract Teacher

Interim Executive

Technical Consultant

Development Officer

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Financial Analyst

Healthcare Professional

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Sales Representative

Human Resources Coordinator

Legal Counsel

Operations Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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