Starting a New Job? Here’s What to Know Before Signing Your Employment Contract
Starting a New Job? Here’s What to Know Before Signing Your Employment Contract
Congratulations on the new opportunity! Whether you’re stepping into your dream role or making a strategic career move, starting a new job is a time of excitement, ambition, and—let’s be honest—a bit of nervous energy. Amidst the onboarding paperwork and meet-and-greets, one document deserves your full attention: your employment contract.
At Abougoush Law, an Edmonton-based firm specializing in labour, employment, and human rights law, we’ve seen how the fine print in a contract can shape your professional future. A careful employment contract review in Alberta isn’t just smart—it’s essential to protecting your legal rights in your new job.
Why Your Employment Contract Matters
Your employment contract is more than a formality. It outlines your rights, responsibilities, and the boundaries of your working relationship. It dictates everything from your salary and hours to more complex issues like non-compete clauses, intellectual property, and termination provisions.
Misunderstanding or overlooking key terms can lead to stress, disputes, or even legal action down the road. According to a 2022 survey by the Canadian HR Reporter, nearly 30% of employment disputes stem from unclear or disputed contract terms. A proactive review can prevent you from becoming part of that statistic.
Alberta-Specific Employment Law Considerations
Alberta has its own employment standards legislation that governs things like minimum wage, overtime, vacation, and termination notice. Employers must comply with the Alberta Employment Standards Code, but many contracts go beyond the legal minimums.
If you’re an independent contractor or in a non-standard role, legal rights in a new job may be even murkier. Make sure your classification matches your actual duties and structure—misclassification can impact your access to benefits and protections.
Alberta-Specific Employment Law Considerations
Alberta has its own employment standards legislation that governs things like minimum wage, overtime, vacation, and termination notice. Employers must comply with the Alberta Employment Standards Code, but many contracts go beyond the legal minimums.
If you’re an independent contractor or in a non-standard role, legal rights in a new job may be even murkier. Make sure your classification matches your actual duties and structure—misclassification can impact your access to benefits and protections.
Key Sections to Review in a New Job Contract
When you’re handed a contract to sign, keep this employment contract checklist in mind:
Clearly defining your role is essential to maintaining clarity and preventing misunderstandings in the workplace. When responsibilities are vague or open-ended, such as the phrase “other duties as assigned,” it can create ambiguity and lead to unrealistic expectations. Over time, this can result in role creep, where your duties expand beyond your original job description without proper discussion or agreement. Without clear boundaries, you may find yourself taking on tasks that are not aligned with your expertise or that overwhelm your workload.
To avoid this, it’s crucial to collaborate with your employer or team to establish a well-defined role with specific responsibilities. Documenting your key duties in your job description or contract ensures everyone is on the same page. By doing so, you can protect yourself from unreasonable expectations and maintain a healthy work-life balance. Clear roles also promote accountability and ensure that any changes to your responsibilities are discussed and agreed upon transparently.
When discussing employment terms, it’s important to confirm the salary, bonus structure, overtime eligibility, vacation entitlements, and benefits package. These details should be clearly outlined in your employment contract or offer letter to ensure transparency and mutual understanding. Salary and bonus structures should be specific, including how bonuses are calculated and under what conditions they are paid. Overtime eligibility is another key factor, as it determines whether you are entitled to additional pay for hours worked beyond the standard workweek. Benefits, such as health insurance, retirement plans, or other perks, should also be detailed to understand the full value of your compensation.
When discussing employment terms, it’s important to confirm the salary, bonus structure, overtime eligibility, vacation entitlements, and benefits package. These details should be clearly outlined in your employment contract or offer letter to ensure transparency and mutual understanding. Salary and bonus structures should be specific, including how bonuses are calculated and under what conditions they are paid. Overtime eligibility is another key factor, as it determines whether you are entitled to additional pay for hours worked beyond the standard workweek. Benefits, such as health insurance, retirement plans, or other perks, should also be detailed to understand the full value of your compensation.
In Alberta, the 90-day probationary period is a critical phase for new employees, during which their performance and fit within the organization are closely monitored. A key implication of this period is that it provides employers with significant flexibility to assess an employee’s capabilities and work habits without the burden of notice or severance requirements. If an employer decides that the employee is not a good fit, they can terminate employment without providing notice or severance pay, making it a relatively straightforward process for employers to part ways with underperforming or unsuitable employees.
Understanding the implications of this probationary period is crucial for job seekers to manage their expectations regarding job security. During these 90 days, it’s essential for new employees to be highly attentive to their performance, adapt quickly to the work environment, and demonstrate their value to the organization. For employers, this period offers a window to integrate the new hire into the team, provide necessary training, and evaluate their potential for long-term success within the company. By being aware of the terms and conditions associated with the probationary period, both parties can navigate this initial phase more effectively, fostering a more productive and positive work experience.
When reviewing a contract, it’s essential to understand the termination clause, specifically whether it allows for termination “with cause” or “without cause.” Termination “with cause” typically means that the contract can be ended due to a specific reason, such as a material breach, non-performance, or other issues that directly affect the agreement’s execution. On the other hand, termination “without cause” allows either party to end the contract for any reason, or no reason at all, often with a specified notice period. Understanding these terms is crucial because they directly impact your financial stability if the contract ends.
The termination clause will also outline whether you are entitled to severance or notice. Severance refers to a payment made by one party to the other upon termination of the contract, while notice refers to the period of time required to inform the other party of the intention to terminate. A well-crafted termination clause will clearly state the conditions under which the contract can be terminated, the notice period required, and any severance or compensation that may be owed. For instance, in employment contracts, a termination clause might specify that an employee is entitled to a certain number of weeks’ notice or severance pay if terminated without cause. Similarly, in service contracts, a termination clause might outline the conditions under which a client can terminate the agreement and any associated fees or penalties. By carefully reviewing this section, you can ensure that you are protected and understand your financial obligations and entitlements if the contract is terminated.
When reviewing a contract, it’s essential to understand the termination clause, specifically whether it allows for termination “with cause” or “without cause.” Termination “with cause” typically means that the contract can be ended due to a specific reason, such as a material breach, non-performance, or other issues that directly affect the agreement’s execution. On the other hand, termination “without cause” allows either party to end the contract for any reason, or no reason at all, often with a specified notice period. Understanding these terms is crucial because they directly impact your financial stability if the contract ends.
The termination clause will also outline whether you are entitled to severance or notice. Severance refers to a payment made by one party to the other upon termination of the contract, while notice refers to the period of time required to inform the other party of the intention to terminate. A well-crafted termination clause will clearly state the conditions under which the contract can be terminated, the notice period required, and any severance or compensation that may be owed. For instance, in employment contracts, a termination clause might specify that an employee is entitled to a certain number of weeks’ notice or severance pay if terminated without cause. Similarly, in service contracts, a termination clause might outline the conditions under which a client can terminate the agreement and any associated fees or penalties. By carefully reviewing this section, you can ensure that you are protected and understand your financial obligations and entitlements if the contract is terminated.
In the tech, marketing, and research industries, intellectual property (IP) clauses play a crucial role in determining ownership of creative work. These clauses outline who retains ownership of ideas, innovations, and projects developed during the course of employment. For employees, understanding these clauses is essential to ensure that their contributions are recognized and protected. If the IP clause is not carefully crafted, employees may find themselves in a situation where their ideas and creations are owned by their employer, potentially limiting their ability to use or benefit from their own work.
To navigate IP clauses effectively, it’s vital for professionals in these fields to carefully review their employment contracts and seek clarification on any ambiguous terms. Employees should be aware of the types of work that are covered by the IP clause, as well as any exceptions or limitations. For instance, some clauses may only apply to work created within the scope of employment, while others may have broader implications. By understanding how IP clauses work, professionals can take steps to protect their ideas and innovations, and ensure that their contributions are recognized and valued. This may involve negotiating specific terms or seeking alternative arrangements, such as ownership agreements or side projects, to safeguard their intellectual property.
Red Flags to Watch Out For
Certain clauses may seem innocuous but could cause trouble later. Here are a few to scrutinize:
Allowing an employer to change your duties or compensation without your consent can significantly impact job security and overall well-being. If an employment contract or agreement includes clauses that permit an employer to unilaterally modify job responsibilities, salary, or benefits, employees may find themselves in a vulnerable position. This can lead to role changes that are outside of their expertise or comfort zone, or reductions in compensation that affect their financial stability. To mitigate this risk, it’s essential for employees to carefully review their employment agreements and negotiate terms that provide a measure of protection, such as requiring mutual consent for significant changes or establishing clear parameters for role modifications.
If a non-compete clause or agreement prevents you from working in your field entirely, it’s likely to be considered unenforceable by a court. In most jurisdictions, such restrictive covenants must be reasonable in scope and duration to be valid. Courts generally consider factors such as the geographic area, duration, and types of activities restricted to determine reasonableness. A blanket prohibition on working in a specific field or industry is often deemed overly broad and therefore unenforceable, as it could cause undue hardship to the individual. Employers may need to revisit and revise such clauses to ensure they are more narrowly tailored to protect legitimate business interests.
Undefined “cause” for termination can be a significant concern for employees, as it can leave them vulnerable to arbitrary or unfair dismissal. When an employment contract or agreement allows an employer to terminate employment for “cause” without clearly defining what constitutes cause, it can create uncertainty and potential for abuse. In such cases, employers may interpret cause broadly, citing minor infractions or subjective performance issues as justification for termination. This lack of clarity can lead to disputes and potential litigation, as employees may feel they have been unfairly terminated. To mitigate this risk, employees should seek to have specific examples of what constitutes cause included in their employment agreement, such as serious misconduct, gross negligence, or failure to meet specific performance targets. A well-defined and specific definition of cause can help protect employees from unfair dismissal and ensure that termination decisions are fair and based on objective criteria. By doing so, employees can have greater job security and confidence in their employment arrangement.
The absence of a severance clause in an employment contract or agreement can have significant implications for employees, potentially leaving them without additional financial support beyond the minimum statutory requirements in the event of termination. In provinces like Alberta, the Employment Standards Code provides a minimum severance payment, but this amount is often limited and may not adequately reflect an employee’s years of service, salary, or contributions to the organization. Without a contractual severance clause, employees may only be entitled to the minimum statutory severance, which could result in a substantial gap between their expected and actual severance pay. For instance, an employee with 10 years of service may only receive a few weeks’ pay as severance under the minimum statutory requirements, whereas a negotiated severance clause could provide several months’ pay. To ensure a more comprehensive severance package, employees should seek to negotiate a contractual severance clause that outlines specific payment terms, such as a certain number of weeks’ pay per year of service, or a guaranteed minimum severance amount. By doing so, employees can better protect their financial well-being in the event of job loss and have greater control over their severance package. Furthermore, employees should also be aware that some employers may offer severance packages on a case-by-case basis, even if it’s not specified in the employment contract, so it’s essential to understand the company’s policies and past practices regarding severance payments.
FAQ: Common Questions About Employment Contracts!
Q: Do I need a lawyer to review my employment contract?
A: Not legally, but having a competent employment lawyer review your contract can protect you from costly mistakes.
Q: Is a verbal job offer legally binding in Alberta?
A: It can be, but written contracts carry more weight and are easier to enforce.
Q: Is a verbal job offer legally binding in Alberta?
A: It can be, but written contracts carry more weight and are easier to enforce.
Q: What if I already signed the contract?
A: It’s not too late. Some clauses can still be clarified or renegotiated, especially if they contradict Alberta employment law.
Q: Are non-compete clause enforceable in Alberta?
A: Only if they are reasonable in scope, time, and location. Courts in Alberta are generally cautious in enforcing them.
Take Control of Your Career with Legal Insight!
Signing an employment contract shouldn’t feel like a leap of faith. With the right information and support, you can confidently move into your new role knowing your rights and future are protected.
At Abougoush Law, we’re here to help you navigate the fine print. Whether you’re a seasoned professional or entering the workforce for the first time, our team offers personalized employment contract review in Alberta to ensure you’re making informed decisions.
Don’t sign blindly. Contact us today 780.964.7575 for a clear, confident start to your next chapter.
This article is for general information purposes only and does not constitute legal advice. To discuss your specific situation, please reach out to Abougoush Law directly.