Employment Agreements

What is an Employment Agreement?
An employment agreement is a document that an employer and employee signs, setting forth the terms of their working relationship. It clearly describes what the employee has to do for the employer (for the job) and what the employer has to do for the employee (the salary paid).

The agreement will also address a number of other issues. These include:

  • The duration of the job.
  • The duties and responsibilities of each party.
  • The benefits involved in the relationship.
  • Grounds for termination.
  • Restrictions on the employee to compete with the employer’s business one he/she leaves.
  • Protection of any trade secrets and client list and database.
  • Ownership of the products the employee works on.
  • Methods for resolving any disputes between parties.
  • Any terms for redundancies or other similar situations.

When an Employer Hires an Employee
When an employer offers an applicant a job, the Act requires the employer to:

  • Provide them with a copy of the employment agreement.
  • Advise them that they are able to seek independent advice about the agreement before they sign it.
  • Give them a reasonable amount of time to get that advice.
  • Ensure that the bargaining is carried out fairly.

The final employment agreement has to be in writing to be enforceable.