Starting a new job or hiring an employee involves much more than simply agreeing on a start date and salary. A combination of written agreements, verbal commitments, and workplace policies shape employment relationships. While an employment contract serves to clarify expectations and responsibilities, many employees may not realize that certain rights and obligations exist regardless of what is written down.
Employment contracts in British Columbia must comply with broader legal frameworks, including human rights laws, health and safety standards, and the Employment Standards Act. Understanding what constitutes an employment contract and what factors influence its validity can help employees navigate workplace relationships and protect their rights, especially if an employee thinks they experienced wrongful dismissal.
What Is an Employment Contract?
An employment contract or agreement is a legal document that details the terms and conditions dictating an employee’s job; key information like job responsibilities, compensation, benefits, and workplace policies are covered in an employment contract. This document may also be used to establish the relationship between an employee and their employer. However, having a written employment contract is not legally required in BC. An employment contract always exists between an employer and an employee, whether implied, verbal, or expressed through other forms of communication. For instance, employment terms can be issued through:
- Job outlines and descriptions in listing advertisements
- Emails, letters, and other conversations exchanged before the job starts
- Workplace policies, manuals, or handbooks
- Collective agreements for unionized workers
- Any document an employee is asked to sign prior to beginning work, such as an offer letter
What Is Included In an Employment Contract?
While the specifics of an employment contract may vary, it typically covers:
Job role and responsibilities
Defines the employee’s job title and duties.
Compensation
Includes salary, wages, bonuses, and other monetary awards.
Working hours
Specifies hours of work, overtime policies, and scheduling requirements.
Vacation and benefits
Details paid time off like vacation and sick time, health benefits, and other perks.
Workplace policies
Outlines expectations regarding conduct, confidentiality, and privacy.
Aside from these major inclusions, employees should read through their employment contracts and locate a few clauses if applicable, including:
Termination clause
Details the conditions under which employment can cease, including notice periods, severance entitlements, and grounds for dismissal.
Probation clause
Establishes the initial trial period that employers use to evaluate an employee’s performance and terminate with minimal notice if expectations are not met.
Layoff clause
Explains the employer’s right to temporarily lay off employees during business downturns or operational needs, along with terms for recall.
Non-solicit/non-compete clause
Prevents the employee from soliciting clients, customers, or employees of the company for a specified period after leaving the job and restricting an employee from working for or starting a competing business within a designated geographic area and timeframe after departing from the company.
Ability to work clause
Confirms the employee is legally permitted to work in the specified jurisdiction and meets any job-specific requirements, such as licenses or certifications.
Location clause
Specifies the primary work location and whether the employee may be required to relocate or travel for work purposes.
Can an Employment Contract Change?
An employment contract can be changed to form a new contract over time, but only under specific conditions. If your employer proposes changes to your current agreement, review it carefully and consider the following:
Voluntary agreement
Both parties must willingly agree to the new contract. An employee cannot be forced to sign a new contract.
Consideration
If a new contract is put forward with significant changes, something of value must be offered in exchange. This could be anything from a raise or bonus to additional paid time off, sick time, or other benefits.
Rights preservation
A new contract cannot undermine employee rights already established in the current agreement.
Adequate review time
Employees must be given sufficient time to review the new terms and seek legal counsel if necessary.
Termination conditions
Any termination changes must comply with BC employment regulations. Clauses that attempt to reduce mandatory notice periods or severance pay amounts could be contested.
Remember, just because your employer introduces a new employment contract does not mean you are obligated to accept it. If you do choose to object to signing changes to a contract, write down your reasons and submit them through email to your employer so you have an undeniable record of your position.
What Invalidates an Employment Contract?
Several factors can render an employment contract unenforceable. For starters, any contracts that conflict with BC’s legal requirements related to employment standards, human rights, or health and safety standards cannot be forced onto employees. Asking an employee to sign a contract after their start date without additional time to review the document also raises red flags about its validity. Lack of consideration, the additional valuable benefits offered in exchange for dramatic changes to an existing contract, can also make the new terms unenforceable. In general, if a contract appears poorly written and is ambiguous or inconsistent in its terms and conditions, it is likely to fall apart under legal scrutiny.
It Is Beneficial to Have a Written Employment Contract?
In theory, a written employment contract provides clarity and sets distinct expectations. However, it may also grant employers significant control over some aspects of the employment relationship if not properly negotiated. For example, failing to adequately review an employment contract and overlooking tricky clauses could result in an employee seeing reduced pay or work hours, reassigned job duties, or minimal notice or severance upon termination. Ideally, all employees should review employment contracts in detail and seek to negotiate terms before signing if there are any questionable clauses included.
What Happens Without a Written Employment Contract?
The absence of a written contract could prove to be beneficial to employees who believe they are the victim of wrongful dismissal. Without a written contract, the working relationship is only governed by an implied or verbal agreement, which is far more difficult for an employer to defend in court.
When to Contact a Lawyer
If you believe your employment contract was breached and you were wrongfully terminated from your job, it’s important to seek out a lawyer. Stephens & Holman will review your claim and let you know if you have a valid case. If there is a case for wrongful dismissal, our team will fight hard to get the compensation you deserve. Reach out today to schedule your free consultation.