Essential Elements of an Employment Contract

As your small business begins to grow you may start considering hiring additional employees. When undertaking this process, it is important that you not only protect your business but also your employees. A good way to do this is through an employment contract. An employment contract is a legal document that outlines the terms and conditions for both, the employer and employee. Here are some essential elements that should be included in all employment contracts.

Terms of employment

The terms make up one of the most important elements. You want to specify whether it is a full-time, part-time, or temporary position. You may also want to indicate the length of the employment with a specific end date if the position is temporary. It is also important to indicate if you are going to implement a probationary period. Details such as the length of this probationary period should be included.

Understand the essentials of employment contracts with Parr Business Law.

Termination without Cause – Know your rights?

Termination with cause is reserved for serious workplace misconduct. In such a case, as an employee you are not entitled to notice of termination or severance pay. Almost every other scenario is classified as termination without cause. As an employer under the BC Employment Standards Act, you have the right to terminate an employee at any time for any reason as long as it is not discriminatory and you provide appropriate notice and/or severance pay. It must be noted however, that as an employee you are only entitled to notice and/or severance pay if you have been employed by that company for a minimum of 3 consecutive months. Additionally, as an employer you are not required to provide any supporting documents for a termination without cause.