Temp To Hire Agreement for Canada

Temp To Hire Agreement Template for Canada

This document establishes the terms and conditions for a temporary employment arrangement that includes the possibility of conversion to permanent employment, governed by Canadian employment law. It outlines the three-way relationship between a temporary staffing agency, a client company, and a temporary employee, detailing the temporary employment period, performance expectations, conversion criteria, and the process for transitioning to permanent employment. The agreement ensures compliance with relevant Canadian federal and provincial employment standards, including temporary worker protections, while providing clear guidelines for all parties involved in the potential transition from temporary to permanent employment.

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What is a Temp To Hire Agreement?

The Temp to Hire Agreement is utilized when organizations wish to evaluate potential employees through a temporary employment period before making a permanent hiring decision. This arrangement is common in the Canadian job market, where companies seek to ensure proper fit while complying with federal and provincial employment regulations. The document outlines the responsibilities of all three parties - the temporary staffing agency, the client company, and the temporary employee - and includes crucial details about the temporary employment period, compensation structures, performance evaluation criteria, and the conversion process to permanent employment. It is designed to protect all parties' interests while ensuring compliance with Canadian employment standards, workplace safety regulations, and privacy laws. The agreement is particularly valuable for organizations that want to reduce hiring risks and maintain flexibility in their workforce planning.

What sections should be included in a Temp To Hire Agreement?

1. Parties: Identification of the three parties involved: the temporary staffing agency, the client company (potential employer), and the employee

2. Background: Context of the agreement, including the purpose of the temporary assignment and potential for permanent employment

3. Definitions: Key terms used throughout the agreement, including 'Temporary Period', 'Conversion Period', 'Permanent Employment', etc.

4. Term and Nature of Temporary Employment: Duration of temporary assignment, role description, working hours, and location

5. Compensation and Benefits During Temporary Period: Payment terms, benefits, and responsible parties for compensation during the temporary period

6. Duties and Responsibilities: Employee's duties, reporting structure, and performance expectations

7. Conversion to Permanent Employment: Process, conditions, and timeline for converting to permanent employment

8. Performance Evaluation: Assessment criteria and review process during the temporary period

9. Confidentiality and Intellectual Property: Protection of company information and ownership of work product

10. Termination Provisions: Conditions and process for early termination of the temporary assignment

11. Governing Law: Specification of applicable Canadian provincial law

What sections are optional to include in a Temp To Hire Agreement?

1. Non-Competition and Non-Solicitation: Restrictions on competitive activities and solicitation of employees/clients, included when dealing with sensitive positions or industries

2. Remote Work Provisions: Terms and conditions for remote work arrangements, included when remote work is applicable

3. Training and Development: Specific training requirements and professional development opportunities, included when significant training is part of the role

4. Equipment and Resources: Provisions regarding company equipment and resources, included when significant company assets are provided

5. Immigration and Work Permit Requirements: Terms related to work authorization, included when dealing with non-Canadian workers

6. Benefits Transition: Details about the transition of benefits from temporary to permanent status, included when benefits packages differ significantly

What schedules should be included in a Temp To Hire Agreement?

1. Schedule A - Job Description: Detailed description of the position, responsibilities, and qualifications

2. Schedule B - Compensation Structure: Detailed breakdown of temporary and permanent compensation, including any conversion bonuses

3. Schedule C - Performance Metrics: Specific performance criteria and targets for conversion eligibility

4. Schedule D - Benefits Summary: Overview of benefits during temporary period and upon conversion

5. Appendix 1 - Company Policies: Relevant company policies and procedures applicable during the temporary period

6. Appendix 2 - Conversion Process Timeline: Detailed timeline and milestones for the conversion process

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Genie AI

Document Type

Agency Agreement

Cost

Free to use
Clauses
Relevant Industries

Technology

Manufacturing

Financial Services

Healthcare

Professional Services

Retail

Logistics and Supply Chain

Construction

Education

Telecommunications

Relevant Teams

Human Resources

Legal

Operations

Finance

Information Technology

Sales

Marketing

Customer Service

Production

Quality Assurance

Administration

Research and Development

Relevant Roles

Software Developer

Project Manager

Administrative Assistant

Financial Analyst

Customer Service Representative

Operations Manager

Sales Representative

Marketing Coordinator

Human Resources Coordinator

Business Analyst

Production Supervisor

Quality Control Specialist

Data Analyst

Executive Assistant

Account Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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