Unit 3 & 4 - Employment Contracts

Question 1

The essential elements of a contract are:

Answer 1

• An offer
• Acceptance of the offer
• Consideration
• Legality

Question 2

Consideration

Answer 2

In order to be valid, something of value must be exchanged between the parties. Consideration usually takes the form of work to be performed in exchange for wages paid.

Question 3

What is meant by that a contract should not be unconscionable?

Answer 3

Bargaining power between the parties should be equal. A contract cannot unreasonably benefit one party at the cost of the other. Helps to allow the employee to review the contract on their own time and provide legal counsel.

Question 4

Obsolete Contracts

Answer 4

After a prolonged period of time, contracts may no longer reflect the conditions of the employment relationship. Courts can examine changes in the employee’s responsibilities and, if there is a substantial difference, could decide that the old contract is no longer applicable.

Question 5

The basic elements of all employment contracts are:

Answer 5

• The names of the parties
• A job description
• The starting date and duration of the contract
• The remuneration ($ paid for work or service)
• A termination clause

Question 6

Reasonable notice for termination without cause

Answer 6

Under the ESA , an employer is required to give
reasonable notice of termination to employees of
three months or more.

Question 7

Reasonable notice for termination with cause

Answer 7

Reasonable notice is not required when the employee is terminated with cause.

Question 8

Restrictive Clauses

Answer 8

• These indicate what the employee is allowed or not allowed to do during and after the term of their employment with the company.
• Common restrictive clauses include confidentiality clauses, non-competition clauses, non-solicitation clauses, etc.

Question 9

Bill 47

Answer 9

Bill 47 removes the reverse onus previously placed on employers to justify their classification of workers as independent contractors.

Question 10

Bill 66: Restoring Ontario’s Competitiveness Act, 2019

Answer 10

Bill 66 expands the definition of “ non -construction employers” to include include:
• School Boards
• Colleges and Universities
• Hospitals
• Local Housing Corporations
• Municipalities

They are no longer bound by the construction provisions in the labour relations act.