{"id":3068,"date":"2016-01-28T13:46:29","date_gmt":"2016-01-28T18:46:29","guid":{"rendered":"https:\/\/lmrlawyers.com\/?p=3068\/"},"modified":"2018-04-02T13:55:50","modified_gmt":"2018-04-02T17:55:50","slug":"employment-matters","status":"publish","type":"post","link":"https:\/\/lmrlawyers.com\/fr\/employment-matters\/","title":{"rendered":"Employment Matters"},"content":{"rendered":"

Employment Contracts \u2013 Procedural Requirements<\/p>\n

By Barbara Nicholls<\/a><\/p>\n

\"BarbNicholls_web_cl_11823-e1317216244184\"<\/a><\/p>\n

I have often written about the need for employers to have enforceable employment contracts.<\/a>\u00a0 Employment contracts and the procedural steps necessary to ensure their enforceability are constantly evolving.<\/p>\n

A recent decision of the Ontario Superior Court highlights the need for employers to keep up with these changes. \u00a0The case of Buaron v AcuityAds Inc<\/a>.<\/em> is now causing a stir.\u00a0 Some employers see this decision as adding to their procedural requirements when hiring a new employee.\u00a0 While this may not be the case, it has certainly clarified the procedural steps necessary to protect an employer who sends a Letter of Offer and then follows up with a more detailed employment contract.<\/p>\n

It has gradually been accepted by employers that employment contracts must be signed before an employee starts work.\u00a0 The basis for this requirement is the lack of consideration. \u00a0If an employee is already hired and working, then nothing of value has been exchanged for signing the employment contract.<\/p>\n

In AcuityAds<\/em>, a prospective employee had numerous discussions with the hiring CEO.\u00a0 The CEO sent an email to the prospective employee detailing the results of negotiations.\u00a0 The email was titled \u201cOffer Letter\u201d.\u00a0 The Offer Letter set out the new employee\u2019s salary, title, vacation and probationary period. \u00a0\u00a0It did not contain any termination provisions.\u00a0 The CEO referenced the need to sign some contracts later but did not stipulate that signing an employment contract was a precondition for commencing employment.<\/p>\n

As it turned out, the employee did however sign an employment contract prior to actually commencing work. This employment contract contained a termination provision which only provided Employment Standards Act<\/em><\/a> notice.<\/p>\n

Some nine months later the employee was terminated for cost cutting reasons and only received the termination payment stipulated in the employment contract.\u00a0 The employee wanted more.<\/p>\n

The employee argued that the employment contract was unenforceable because he had already agreed to terms in the Offer Letter.\u00a0 In other words, the Offer Letter was the employment contract and the document signed later (the more formal employment contract with the termination provision) was unenforceable for lack of consideration.<\/p>\n

The Court agreed.\u00a0 The Court found that nothing of value was exchanged for signing the formal employment contract.\u00a0 As a result the Employer had to provide termination payments far greater than that stipulated in the employment contract.<\/p>\n

Employers must be mindful that in the to and fro of employment negotiations they could be creating a contract which would negate later formal employment contracts.\u00a0 Therefore, if sending a Letter of Offer, make sure that a precondition to employment is the execution of an employment contract and include that employment contract with the Letter of Offer.\u00a0 Employers may see this requirement as adding another step to an already complicated hiring procedure.\u00a0 Given the AcuityAds<\/em> decision, however, it is better to be safe than sorry.<\/p>\n

The lawyers in LMR\u2019s Employment and Labour Law group<\/a> are able to assist employees and employers with Employment Contracts.<\/p>\n","protected":false},"excerpt":{"rendered":"

Employment Contracts \u2013 Procedural Requirements By Barbara Nicholls I have often written about the need for employers to have enforceable employment contracts.\u00a0 Employment contracts and the procedural steps necessary to … <\/p>\n

Continuer la lecture<\/a><\/p>\n","protected":false},"author":12,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37],"tags":[],"class_list":["post-3068","post","type-post","status-publish","format-standard","hentry","category-employment-and-labour-law"],"acf":[],"yoast_head":"\nEmployment Matters | LMR Lawyers<\/title>\n<meta name=\"description\" content=\"I have often written about the need for employers to have enforceable employment contracts.\u00a0 Employment contracts and the procedural steps necessary to ensure their enforceability are constantly evolving.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/lmrlawyers.com\/fr\/employment-matters\/\" \/>\n<meta property=\"og:locale\" content=\"fr_FR\" \/>\n<meta property=\"og:type\" 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