Outside Employment Agreement Template for Canada

An Outside Employment Agreement is a crucial legal document that defines the terms and conditions under which you can engage in work activities beyond your primary employment. In Canada's evolving workplace landscape, this agreement protects both your interests as an employee and your employer's legitimate business concerns while ensuring compliance with federal and provincial employment legislation.

When do you need this document?

You need an Outside Employment Agreement when you want to pursue consulting opportunities, teach courses, deliver speaking engagements, serve on boards of directors, or engage in any professional activities outside your main job. This document is essential if you work in technology, finance, healthcare, education, or professional services where external opportunities are common. The agreement becomes particularly important when your outside work involves similar industries, potential clients, or activities that could create time conflicts with your primary role. Many employers require this agreement before approving any external professional engagement to protect their confidential information and ensure your outside activities don't interfere with your job performance.

Key legal considerations

The agreement must clearly define what constitutes "outside employment" and establish disclosure requirements for any external activities. Key provisions include time allocation limits to ensure your primary job performance isn't compromised, confidentiality clauses protecting your employer's proprietary information, and intellectual property assignments clarifying ownership of work created during outside activities. The document should address potential conflicts of interest, including restrictions on working with competitors or clients. Non-solicitation clauses may prevent you from recruiting colleagues or pursuing your employer's clients through outside work. Compensation and revenue-sharing arrangements must be clearly outlined, along with termination conditions and post-employment obligations. The agreement should also specify approval processes for future outside employment opportunities.

Legal requirements in Canada

Outside Employment Agreements in Canada must comply with the Canada Labour Code for federally regulated industries and relevant provincial Employment Standards Acts for other sectors. The agreement cannot violate your fundamental rights under the Canadian Human Rights Act or impose unreasonable restrictions on your ability to earn a living. Privacy considerations under the Personal Information Protection and Electronic Documents Act (PIPEDA) apply to any personal information collected or disclosed. Competition Act provisions may limit certain non-compete clauses, particularly in provinces like Ontario where broader non-compete restrictions have been implemented. The agreement must respect provincial human rights legislation and cannot discriminate based on protected grounds. Reasonable notice periods and compensation requirements must align with provincial employment standards, and any termination clauses must comply with minimum statutory requirements across Canadian jurisdictions.