EMP_Chapter_4__-_Tagged

Consideration in an employment contract

The employee’s promise to exchange labor for wages from the employer.

Exceptions for written employment contracts

1. Fixed term employment agreements longer than 1 year. 2. Conditional employment based on signing a formal contract.

Presumption of reasonable notice

Employers need a written contract to exclude a non-unionized employee's right to reasonable notice upon termination.

Common Law Notice

Entitlement to notice of termination when there is no written contract limiting termination entitlements.

Implied terms in employment contracts

Include the duty of confidentiality, loyalty, and non-competition, especially for fiduciary employees.

Fiduciary employee

A senior/key employee in a position of trust who can significantly impact an employer's interests post-employment.

Job description in employment contracts

Specifies essential duties; significant changes without consent lead to constructive dismissal.

Term of employment relationship

Contracts can be indefinite (unfixed) or definite (fixed), with specific rights depending on the type.

Indefinite employment

Assumed unless explicitly stated otherwise; employees have a right to reasonable termination notice.

Probationary period

Not implied at common law and must be explicitly stated; typically between 3 to 6 months.

Termination provisions

Must be clear and unequivocal, meeting or exceeding ESA requirements.

Non-solicitation clause

Prevents a departing employee from soliciting customers or clients.

Non-competition clause

Prevents a departing employee from competing with the employer post-employment.

Severance entitlements

Conditions under which an employee may receive severance pay upon termination.

Corporate policies in employment contracts

Must be expressly made binding in the agreement, requiring acknowledgment from employees.

Entire agreement clause

States that the signed contract contains the entire agreement, excluding prior negotiations.

Golden parachute

Provides substantial compensation to senior executives upon termination.

Duty to mitigate

Requires employees to seek comparable employment to reduce common law notice pay entitlements.

Statutory ban exceptions on non-competition clauses

Applicable in sales of business, for C-suite executives, and for agreements before October 25, 2021.

Severability clause

Allows the rest of the contract to survive if part is found invalid, except in termination provisions.