A Company Employment Letter is a fundamental document used to formalize employment relationships in Canada. It is typically issued when making a new hire, promoting an employee, or significantly changing employment terms. The letter must comply with both federal Canadian employment laws and provincial employment standards in the relevant jurisdiction. This document includes essential information such as job title, compensation, benefits, working hours, and other key terms of employment. The Company Employment Letter serves multiple purposes: it confirms the employment offer, establishes clear expectations, and provides a reference point for the employment relationship. While less formal than a comprehensive employment agreement, it must still address all legally required elements of the employment relationship and reflect mandatory employment standards applicable in the relevant Canadian jurisdiction.
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1. Company Letterhead and Date: Official company letterhead including company name, address, and date of the letter
2. Employee Information: Full name and address of the employee
3. Position and Reporting Structure: Job title, department, and immediate supervisor
4. Start Date and Employment Status: Confirmed start date and whether the position is permanent, temporary, or fixed-term
5. Compensation: Base salary, payment frequency, and any guaranteed bonuses
6. Hours of Work: Regular working hours, days of work, and overtime expectations
7. Benefits: Overview of health benefits, insurance, and other standard benefits
8. Vacation and Leave: Annual vacation entitlement and paid time off policies
9. Probationary Period: Length and terms of the probationary period if applicable
10. Confidentiality: Basic confidentiality obligations
11. Acceptance and Signature: Space for both employer and employee signatures and date
1. Equity Compensation: Include when offering stock options or other equity-based compensation
2. Remote Work Arrangements: Include when the position involves regular remote work
3. Commission Structure: Include for sales positions or roles with commission-based compensation
4. Travel Requirements: Include when the position requires regular travel
5. Non-Competition: Include for senior positions or when dealing with sensitive information
6. Non-Solicitation: Include for client-facing roles or senior positions
7. Intellectual Property Rights: Include for creative or technical positions
8. Professional Development: Include when offering specific training or education benefits
9. Flexible Benefits Allowance: Include when offering flexible benefits or lifestyle spending accounts
10. Vehicle Allowance: Include when providing a company car or vehicle allowance
1. Schedule A - Benefits Summary: Detailed breakdown of all benefits and insurance coverage
2. Schedule B - Bonus Plan: Details of any performance bonus or incentive compensation plan
3. Schedule C - Job Description: Detailed description of role responsibilities and requirements
4. Schedule D - Company Policies: Key company policies that form part of employment terms
5. Appendix 1 - Equity Plan Summary: Summary of stock option or equity compensation terms if applicable
6. Appendix 2 - Commission Structure: Detailed commission calculations and terms if applicable
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