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It is helpful to think of hiring an employee as getting married - you are now legally bound to this person. An employment agreement can be likened to a prenup for the employment relationship. We all know that regardless of how well you get along with someone right now, situations can change down the road. A written employment agreement protects the employer's interests in the event the employment relationship does not work out.
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WHY EMPLOYERS NEED EMPLOYMENT AGREEMENTS
When you hire an employee, you enter into a contractual relationship with them. Whether the contract is written or verbal does not matter - all employer-employee relationships are contractual. As with any contractual relationship, both parties have certain rights and obligations to one another. In BC, the two main bodies of law that govern these rights and obligations are the BC Employment Standards Act and common law. These laws are designed to protect the employee's interests.
In the absence of a written employment agreement, your employer-employee relationship will be governed by the implied contractual terms provided by these laws. However, if you have a written employment agreement made, you can have more control over which terms to include and you can contract out of unfavorable terms that would otherwise be implied. We have listed some common employment agreement clauses that may benefit you below:
In the absence of a written employment agreement, your employer-employee relationship will be governed by the implied contractual terms provided by these laws. However, if you have a written employment agreement made, you can have more control over which terms to include and you can contract out of unfavorable terms that would otherwise be implied. We have listed some common employment agreement clauses that may benefit you below:
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CONFIDENTIALITY Protect your trade secrets, client lists, and other confidential information. |
NON-COMPETITION Prevent the employee from jumping ship to work for your competitors. |
TERMINATION CLAUSE Outline grounds for termination and limit your obligation to pay severance. |
NOTICE Limit the employee's ability to leave without giving you ample notice. |
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NON-SOLICITATION Prevent the employee from soliciting your clients, suppliers or other employees. |
LAYOFF Retain the right to layoff employees if business conditions become unfavorable. |
OWNERSHIP Retain the rights to any intellectual property that your employees develop for you. |
PROBATION PERIOD Extend the length of time where you can change your mind without costly consequences. |
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FIXED TERMS If the employment is temporary, make sure terms are unambiguous to both parties. |
MANAGEMENT Employment agreements are essential when hiring management and other professionals. |
BENEFITS OF EMPLOYMENT AGREEMENTS
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ENSURE COMPLIANCE WITH EMPLOYMENT LAWS. An employer's rights and obligations under BC laws can be difficult to understand. Having an employment agreement drafted by an HR professional will ensure the terms are lawful.
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PROTECT YOURSELF. In the event you need to terminate employment, an employment agreement can protect you and your business from costly wrongful dismissal claim and other potential issues.
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CLEAR EXPECTATIONS & TERMINOLOGY. Clearly outline the rights and responsibilities of both parties, reducing ambiguity and risk of any misunderstandings. In the event you need to enforce your employment agreement in court, the use of clear, unambiguous language will be essential.
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PRO-ACTION. Having an employment agreement made at the beginning of the employment relationship addresses contentious issues (such as termination) early while everyone is still "getting along".
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FAVORABLE TERMS. Effectively contract out of unfavorable terms that would otherwise be implied by common law.
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OUR PROCESS
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STEP 1 Contact Us Book Consultation Meeting Payment |
STEP 2 Consultation Meeting (Phone or Zoom) Document Drafting |
STEP 3 Document Delivery (2 Formats: PDF & Word) Revisions (if required) |
FEES & PAYMENT
We charge a flat-rate fee for drafting employment agreements. This fee includes the initial consultation meeting (up to one hour) and one downloadable employment agreement in two formats: Word & PDF. It also includes one round of revisions (if required).
COST: $395 (plus tax)
PAYMENT & TERMS: Payment in full must be made to confirm consultation meeting. We accept payment via e-transfer or check (mail).
COST: $395 (plus tax)
PAYMENT & TERMS: Payment in full must be made to confirm consultation meeting. We accept payment via e-transfer or check (mail).
