Non Fixed Term Contract Template for Canada

A Non Fixed Term Contract is an indefinite employment agreement that establishes an ongoing working relationship between you and your employer without a predetermined end date. Unlike fixed-term contracts, this agreement continues until terminated by either party with proper notice as required under Canadian employment law. This type of contract is the most common form of employment arrangement in Canada and provides both stability for employees and flexibility for employers.

When do you need this document?

You need a Non Fixed Term Contract when hiring permanent employees for ongoing positions in your organization. This includes situations where you're bringing on new staff members for roles that aren't project-based or temporary, such as full-time administrative assistants, managers, sales representatives, or technical specialists. The contract is essential when formalizing employment relationships that were previously informal or when converting temporary workers to permanent status. You'll also need this document when establishing employment terms for roles that require long-term commitment and development, or when you want to provide job security while maintaining the ability to terminate with proper notice.

Key legal considerations

Your Non Fixed Term Contract must clearly define the employment relationship while protecting both parties' interests. Essential clauses include detailed job descriptions, reporting structures, and performance expectations to prevent disputes over duties and responsibilities. Compensation provisions must specify base salary, payment frequency, benefits entitlements, and any variable compensation structures. Termination clauses are critical and must comply with minimum notice periods under employment standards legislation while potentially including severance provisions beyond statutory minimums. The contract should address confidentiality obligations, intellectual property ownership, non-solicitation restrictions, and post-employment obligations. Include provisions for workplace policies, professional development opportunities, and dispute resolution procedures to ensure comprehensive coverage of the employment relationship.

Legal requirements in Canada

Canadian employment law requires your contract to meet minimum standards under both federal and provincial legislation. The Canada Labour Code applies to federally regulated industries, while provincial Employment Standards Acts govern most other workplaces. Your contract must provide minimum wage guarantees, maximum hours of work provisions, overtime compensation, vacation entitlements, and statutory holiday benefits as required by applicable jurisdiction. Human rights legislation requires accommodation provisions and prohibits discrimination based on protected grounds. Privacy obligations under PIPEDA or provincial privacy laws must be addressed when handling employee personal information. Occupational health and safety requirements must be incorporated, including employer duties to maintain safe workplaces and employee obligations to follow safety procedures. Ensure your contract includes probationary period provisions if applicable, termination notice requirements that meet or exceed statutory minimums, and compliance with any industry-specific regulations that may apply to your business.