Ongoing Employment Contract Template for Canada

An ongoing employment contract is your essential legal foundation for establishing permanent employment relationships in Canada. Unlike fixed-term contracts, this document creates an indefinite employment arrangement that continues until terminated by either party according to applicable notice periods and legal requirements.

When do you need this document?

You need an ongoing employment contract when hiring full-time or part-time employees for permanent positions without predetermined end dates. This includes situations where you're bringing on new staff members, promoting existing employees to permanent roles, or converting temporary workers to ongoing status. The contract is particularly important for management positions, specialized roles, or any position where you want to clearly define expectations, compensation structures, and performance standards. It's also essential when establishing employment relationships that will involve confidential information, intellectual property creation, or specific non-competition requirements.

Key legal considerations

Your ongoing employment contract must address several critical legal elements to ensure enforceability and compliance. Compensation clauses should detail base salary, benefits, and any variable pay components while adhering to minimum wage requirements. Termination provisions must comply with provincial notice periods or pay in lieu requirements, and cannot contract out of minimum standards. Confidentiality and intellectual property clauses protect your business interests but must be reasonable in scope and duration. Non-competition and non-solicitation clauses require particular care, as Canadian courts scrutinize these heavily and will only enforce restrictions that are reasonable in geographic scope, duration, and scope of activities. Performance expectations and disciplinary procedures should be clearly outlined to support any future performance management decisions.

Legal requirements in Canada

Canadian employment law operates under both federal and provincial jurisdiction, depending on your industry and business type. Federally regulated employers must comply with the Canada Labour Code, while most other employers fall under provincial Employment Standards Acts. Your contract must meet minimum standards for wages, hours of work, overtime pay, vacation entitlements, and statutory holidays as prescribed by the applicable legislation. Human rights considerations require ensuring your contract terms don't discriminate based on protected grounds under the Canadian Human Rights Act or provincial human rights codes. Privacy obligations under PIPEDA or provincial privacy legislation must be addressed when collecting and using employee personal information. Workplace safety requirements under occupational health and safety legislation should also be acknowledged. Additionally, your contract should specify which provincial laws govern the agreement and include dispute resolution mechanisms that comply with local legal requirements.