Please note: All of Bow River Law LLP’s materials posted on YouTube are for legal information and discussion purposes only, and should not be considered legal advice. If you are in a legal situation, you should speak to a lawyer directly.
S1 E24: What Should I Do If My Employer Wants Me to Sign an Employment Contract?
Understanding Employment Contracts in Alberta
Employment contracts significantly impact an employee’s rights in Alberta. Whether written, verbal, or implied, each type of agreement carries distinct implications. Here’s some important information to help you navigate your rights effectively.
Types of Employment Agreements
Verbal or Implied Agreements
Most employees in Alberta operate under verbal or implied agreements, which are not explicitly written but still legally binding. These agreements often provide the greatest protection for employees because they include rights implied by common law. Over many years, these implied rights have been developed to safeguard employees from unfair treatment.
Written Employment Contracts
Written contracts are more formal and can sometimes benefit employees. However, they are frequently used by employers to limit employee rights. Many individuals believe they have no employment agreement simply because it’s not in writing, but that’s a misconception. A verbal or implied agreement still constitutes a legal employment contract.
Potential Risks in Written Employment Contracts
Written contracts often include clauses that restrict employee rights. These might include non-solicitation clauses, non-competition clauses, confidentiality clauses, conflict of interest clauses, termination clauses, just cause clauses, and layoff clauses. Each of these terms can significantly impact what an employee is entitled to, such as severance or the ability to work with competitors in the future.
Why Legal Advice is Essential
If your employer asks you to sign a written agreement, it is usually intended to protect their interests rather than yours. Reviewing the contract with an employment lawyer is critical to fully understanding its implications. Employment lawyers have the expertise to advise you on your rights, help negotiate terms, and ensure the agreement aligns with your best interests.
For any questions about a new or existing employment contract, or your rights as an employee, consulting with an employment lawyer can make all the difference.
S2 E11: What terms should be included in an Employment Contract?
In this detailed video published in August, 2024, a former Bow River Law employment lawyer in Calgary, Alberta, provided valuable insights into the essential terms that should be included in an employment contract. Focusing on written contracts, he discussed key elements such as names, contract types (fixed term or indefinite), compensation details (salary, bonus, benefits), and obligations/responsibilities of both parties.
The lawyer delved into the unequal bargaining power between employers and employees, highlighting the significance of implied contractual terms and the relevance of Alberta’s provincial laws.
Key Terms to Include in an Employment Contract
At Bow River Law in Calgary, Alberta, we understand that employment contracts are a cornerstone of professional relationships. While a contract doesn’t need to be in writing to be legally binding, a written agreement provides clarity and security for both parties. Today, we’ll explore the essential elements of a well-drafted employment contract and their importance.
What is an Employment Contract?
An employment contract is essentially an agreement between two parties outlining their expectations and responsibilities. Legally, this concept is often referred to as consensus ad idem, or “a meeting of minds.” The goal of the contract is to clearly define the relationship and ensure mutual understanding of obligations.
Essential Terms to Include:
1. Identification and Nature of the Agreement
Clearly identify the parties involved.
Specify whether the contract is for a fixed term or indefinite term.
2. Compensation Details
Include salary, bonuses, benefits, and any signing bonuses.
Outline allowances and other forms of remuneration.
3. Job Role and Responsibilities
Define the employee’s title and primary job duties.
While the duties don’t need to be exhaustive, they can be supplemented with policies.
4. Termination Clauses
Provide clarity on what happens when the relationship ends.
These clauses sometimes limit an employee’s entitlement to reasonable notice under common law. However, unfair or unclear clauses are often unenforceable.
Implied Terms and Legal Considerations
Employment contracts are subject to implied terms derived from common law and statutory provisions. These terms protect employees, especially given the inherent imbalance of bargaining power. Employers usually draft contracts, leaving employees to sign without negotiation, which courts acknowledge as a potential vulnerability.
When drafting or reviewing a contract, it’s crucial to consider:
The jurisdiction governing the agreement (e.g., Alberta, Ontario, British Columbia, or another region).
How implied terms and statutes might influence the interpretation of the contract.
Additional Provisions to Consider
Beyond the fundamental terms, an employment contract may include:
Confidentiality agreements to protect proprietary information.
Non-solicitation clauses to prevent employees from poaching clients or staff.
Non-competition clauses, where applicable, to restrict employees from working with competitors for a specified period.
Why Customize Each Contract?
Every employment relationship is unique. While template agreements may save time, a custom contract ensures the specific needs and expectations of both parties are addressed. Tailoring the terms can reduce misunderstandings and mitigate potential legal disputes.
Seeking Legal Advice
Whether you’re an employer drafting a contract or an employee reviewing one, consulting an employment lawyer is highly recommended. Professional guidance helps ensure the agreement is clear, fair, and compliant with applicable laws. At Bow River Law, we’re here to assist with all aspects of employment law, from drafting contracts to advising on your legal rights and obligations.
S1 E1: How Does “At-Will” Employment Work?
Bow River Law LLP employment lawyer Joel Fairbrother explains the concept of “At Will” employment and whether it applies to Alberta employees.
Understanding “At-Will” Employment in Alberta
Joel Fairbrother, an employment lawyer at Bow River Law LLP, provides clarity on the concept of “at-will” employment and its applicability—or lack thereof—in Alberta. While common in certain parts of the United States, this concept does not align with Alberta’s legal framework.
What is “At-Will” Employment?
“At-will” employment allows an employer to terminate an employee’s contract at any time, for any reason, without notice or severance. It is most often seen in the United States, particularly in states like Texas. However, this concept does not exist in Alberta or elsewhere in Canada.
Why “At-Will” Employment is Not Legal in Alberta
In Alberta, employment contracts that claim to establish “at-will” employment are unenforceable. Provincial law, specifically the Alberta Employment Standards Code, sets mandatory minimum requirements for notice or severance upon termination of employment. No employment contract can override these minimum standards for ordinary employees.
The Minimum Notice Periods Under Alberta Law
The Alberta Employment Standards Code outlines the bare minimum notice or severance required upon termination:
0 weeks: During the probationary period.
Up to 8 weeks: For employees with longer service (e.g., 10 years or more).
These minimums ensure that employees are provided some level of protection, even if their contract suggests otherwise.
These groups may have different standards or collective agreements governing their employment terms.
Just Cause vs. “At-Will” Employment
It’s important to distinguish between “at-will” employment and termination for just cause:
Just Cause: Employers can terminate employment without notice or severance for specific reasons, such as misconduct or extremely poor performance.
At-Will: This concept implies termination can occur for any reason, without just cause or notice.
In Alberta, only termination for just cause is legally enforceable without notice, and even this requires strong evidence to hold up in court.
Conclusion: No “At-Will” Employment in Alberta
In short, the concept of “at-will” employment does not exist in Alberta. Employers must adhere to the minimum notice periods outlined in the Alberta Employment Standards Code or risk having their contracts deemed unenforceable. Employees should be aware of their rights and seek consultation with an employment lawyer if faced with a termination that does not comply with these standards.
For personalized support, contact us today to ensure your employment contract is thorough and tailored to your needs.
