The job description should be defined with reasonable precision. Pro’s lawyer, Jonna Riiali, advises against including vague clauses such as “...and other tasks assigned by the employer.”
– That kind of wording gives the employer more freedom to assign work beyond the employee’s main responsibilities, she explains.
The job description cannot be changed without grounds for termination. However, if the contract allows for overly broad interpretations, the employee may be expected to perform duties they hadn’t anticipated.
– Still, the employer can’t assign just anything. For instance, an engineer doesn’t have to go shovel snow, Riiali reminds.
Trial period and salary are key elements of an employment contract
A trial period—of up to six months—can also be included in the contract. During this time, either party can terminate the contract with immediate effect.
– It’s a chance to evaluate whether the role is a good fit for both parties. However, dismissal during the trial period must still be based on objective grounds, Riiali notes.
The contract must specify how the salary is determined: whether it's monthly, hourly, or based on another model. It should also state the payday and the applicable collective agreement.
– The collective agreement defines the minimum terms of employment, such as pay, bonuses, holidays, sick leave, working hours, and other employment conditions. These don’t usually need to be negotiated individually.
Fringe benefits like lunch or phone allowances should also be listed. These, along with company cars or bicycles, are considered taxable income just like regular wages.
Fixed-term contracts must be justified
It’s essential to state whether the employment contract is permanent or fixed-term.
– Fixed-term contracts must have objective justification, such as covering for a leave, managing a temporary workload increase, or completing a specific project, says Riiali.
The government is considering changing the law to allow fixed-term contracts of less than one year without justification.
There’s no legal limit on the duration of fixed-term contracts, but it’s wise to agree on early termination options—otherwise, the employee may be locked in for years without the ability to resign.
Consecutive fixed-term contracts can be problematic. At some point, multiple back-to-back contracts may legally be considered permanent.
– The law doesn’t specify an exact limit, but courts consider the number, duration, and justification of the contracts. A clear pattern of continuous need may mean the employment relationship is deemed permanent.
Review your contract carefully before signing
Include notice periods and how salary and other payments are handled when the contract ends.
And most importantly: always make the contract in writing, and read it carefully before signing. If anything is unclear, have a shop steward review it with you.
TOP 5 Employment Contract Essentials:
- Always in writing
- Clear job description
- Salary and working hours
- Fixed-term or permanent
- Have a shop steward review it before signing
Remote work and non-compete clauses require clear rules
Remote work arrangements are still evolving, so it’s important to agree on clear policies.
– Many workplaces now agree on things like being onsite one day per week or allowing remote work two or three days a week, says Riiali.
Some employers include confidentiality clauses with penalties or non-compete agreements. Riiali recommends approaching these with caution.
– A non-compete clause must always have a particularly weighty reason, she stresses. They have often been seen as overly restrictive.
– At one point, non-compete clauses were used excessively. Now, employers are required to pay 40–60% of the employee’s salary during the non-compete period, depending on the length of the restriction. This has reduced unnecessary use of these clauses.