What Are The Benefits Of Employment Agreements
Many people refer to a “rule of thumb” of one month`s salary, benefits/bonuses per year of service for the calculation of the common law notice/severance pay. In reality, however, there is no “rule of thumb.” A review of the cases decided, which appear to be based at face value on comparative employees, reveals results of frightening diversity. As a general rule, the ceiling for severance/termination benefits in customary law circumstances is 24 months, subject to exceptional circumstances. A well-drafted employment contract that does not violate the Employment Standards Act (“ESA”) may limit an employee`s right to termination of employment to the ESA`s minimum rights. The rights to the ESA are significantly lower than those under the common law. This is very dangerous because what is in a company`s contract is not necessarily relevant or appropriate for your business. Let`s look at the benefits of an employee contract. If you would like instructions on how to enter into an employment contract, you should contact an employment lawyer. This is not something that should be presented to the employee on the first day or day of work or after the start of work. There are ways to change the terms and conditions of existing employees that go beyond the scope of this article.
For roles that involve handling sensitive or confidential information, an employment contract also protects them. A confidentiality clause ensures that sensitive information that could be valuable to competitors does not leak. In addition, the employee cannot use this information if he wants to compete with you. .