Non Fixed Term Employment Contract Template for Canada

A Non Fixed Term Employment Contract creates an indefinite employment relationship between you and your employer, establishing the foundation for permanent employment under Canadian law. Unlike fixed-term contracts with specific end dates, this agreement continues until terminated by either party according to the terms outlined and applicable employment standards legislation. You'll need this contract to formalize permanent employment arrangements while ensuring compliance with both federal and provincial employment laws across Canada.

When do you need this document?

You require a Non Fixed Term Employment Contract when hiring permanent employees for ongoing positions in your organization. This document is essential when establishing full-time or part-time permanent roles, transitioning employees from probationary to permanent status, or converting temporary workers to indefinite employment. You'll also need this contract when restructuring existing employment arrangements to provide greater job security and when ensuring compliance with Canadian employment standards that favor indefinite over fixed-term employment relationships.

Key legal considerations

Your contract must clearly define the probationary period, typically ranging from three to six months, during which either party can terminate employment with minimal notice. Compensation provisions should specify base salary, benefits, overtime entitlements, and any performance-based incentives while ensuring compliance with minimum wage requirements. The agreement must address termination procedures, including notice periods that meet or exceed provincial employment standards minimums, severance entitlements, and grounds for termination with or without cause. Confidentiality and non-compete clauses require careful drafting to ensure enforceability under Canadian law, which generally favors employee mobility. You should also include provisions for workplace policies, health and safety obligations, and intellectual property ownership to protect your business interests while respecting employee rights.

Legal requirements in Canada

Your contract must comply with the Canada Labour Code if your business operates in federally regulated industries such as banking, telecommunications, or interprovincial transportation. For other employers, provincial Employment Standards Acts govern minimum requirements for wages, hours of work, overtime, vacation entitlements, and statutory leaves. The Canadian Human Rights Act and provincial human rights codes prohibit discriminatory employment practices and require accommodation of protected characteristics. Privacy obligations under PIPEDA or provincial privacy legislation must be addressed when collecting and using employee personal information. Your contract should also reflect provincial variations in employment standards, as termination notice periods, vacation entitlements, and statutory leave provisions differ significantly between provinces. Ensure your agreement includes choice of law clauses specifying which provincial legislation applies to avoid jurisdictional confusion.