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New Employment Contract for Canada

New Employment Contract Template for Canada

A comprehensive employment agreement governed by Canadian law that establishes the formal employment relationship between an employer and employee. This contract outlines essential terms and conditions of employment including position duties, compensation, benefits, working hours, confidentiality obligations, and termination provisions. The document ensures compliance with federal Canadian employment standards while providing flexibility to accommodate provincial variations where applicable. It serves as a legally binding agreement that protects both employer and employee interests while clearly defining their respective rights and obligations.

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New Employment Contract

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What is a New Employment Contract?

This New Employment Contract template is designed for use by Canadian employers when hiring new employees, whether for permanent or fixed-term positions. The contract incorporates essential elements required under Canadian employment law, including both federal and applicable provincial standards. It is typically used at the final stage of the hiring process, after offer acceptance and before the employee's start date. The document covers crucial aspects such as compensation, benefits, duties, confidentiality, and termination provisions, while ensuring compliance with minimum employment standards, human rights legislation, and privacy laws. This template can be customized based on the specific role, industry requirements, and provincial jurisdiction while maintaining core protections for both employer and employee.

What sections should be included in a New Employment Contract?

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

2. Background: Brief context about the employment relationship and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Position and Duties: Details the employee's title, role, responsibilities, and reporting relationships

5. Term and Hours of Work: Specifies employment duration (if fixed-term) and working hours, including overtime expectations

6. Compensation: Details base salary, payment frequency, and method of payment

7. Benefits and Vacation: Outlines health benefits, insurance, vacation entitlement, and other standard benefits

8. Probationary Period: Specifies the initial probationary period and conditions

9. Confidentiality: Defines confidential information and employee's obligations to protect it

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

11. Non-Solicitation: Prevents employee from soliciting company's customers or employees after departure

12. Termination: Outlines conditions for termination with and without cause, notice periods, and severance

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

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

What sections are optional to include in a New Employment Contract?

1. Remote Work: Include when the role involves regular remote work, specifying arrangements and requirements

2. Commission Structure: Include for sales roles or positions with variable compensation

3. Non-Competition: Include for senior roles or when employee will have access to sensitive competitive information

4. Travel Requirements: Include when role requires regular travel, specifying expectations and compensation

5. Stock Options/Equity: Include when offering company shares or stock options as part of compensation

6. Flexible Hours: Include when offering flexible working arrangements

7. Bonus Structure: Include when offering performance-based or discretionary bonuses

8. Professional Development: Include when offering specific training or education benefits

What schedules should be included in a New Employment Contract?

1. Schedule A - Compensation Details: Detailed breakdown of salary, benefits, and any variable compensation components

2. Schedule B - Job Description: Detailed description of role, responsibilities, and performance expectations

3. Schedule C - Benefits Summary: Comprehensive overview of all benefits and eligibility requirements

4. Schedule D - Company Policies: Key company policies that form part of the employment terms

5. Schedule E - Equity/Stock Option Plan: Details of any share or option grants, vesting schedules, and conditions

6. Appendix 1 - Confidential Information Examples: Specific examples of what constitutes confidential information

7. Appendix 2 - Remote Work Policy: Detailed requirements and expectations for remote work arrangements

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

Agreement Contract

Cost

Free to use
Relevant legal definitions




































Clauses



































Relevant Industries

Technology

Financial Services

Healthcare

Manufacturing

Retail

Professional Services

Education

Construction

Energy

Transportation

Telecommunications

Hospitality

Media and Entertainment

Non-Profit

Government Services

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Research and Development

Customer Service

Administration

Product Development

Quality Assurance

Business Development

Corporate Communications

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Director

Manager

Supervisor

Developer

Engineer

Analyst

Coordinator

Administrator

Sales Representative

Marketing Specialist

Human Resources Officer

Account Manager

Project Manager

Consultant

Technical Specialist

Customer Service Representative

Operations Manager

Research Scientist

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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