Topic

Employment contracts

Plain-language answers on employment contracts, written from primary sources.

An employment contract in Canada is only partly what the parties write: employment standards legislation reads mandatory minimums into every contract, voids clauses that try to undercut them, and in federal workplaces requires a written employment statement with prescribed contents on a deadline. The practical question is rarely “do we have a contract” (working plus paying already creates one) but “does the written contract actually do what the employer thinks it does”.

What each jurisdiction requires in writing

Federal (Canada Labour Code)Ontario (ESA, 2000)Alberta (Employment Standards Code)
Written document requiredWritten employment statement with prescribed contents, on a 30-day deadlineNo general written-contract requirement, but specific documents and postings areNo general written-contract requirement, but specific agreements must be written
Sharpest clause ruleStatement must be updated within 30 days of changesMost non-competes signed on or after October 25, 2021 are voidAveraging arrangements and certain deductions need written form
Floor that can’t be contracted outCode minimumsESA minimumsCode minimums

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Clauses that fail most often

  1. Termination clauses that try to cap notice below the statutory minimum. They are void, and a void clause usually revives the larger common-law entitlement.
  2. Non-competes in Ontario. Signed on or after October 25, 2021, most are void by statute; non-solicitation clauses are the narrower tool that survives more often.
  3. Contractor labels on employee relationships. The contract’s title does not control; the actual working relationship does, and misclassification carries CRA and standards exposure.
  4. Stale templates. Federal statement requirements and Ontario’s non-compete ban both arrived recently enough that older templates silently fail them.

Official starting points

Guide last updated August 8, 2026.

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