We all remember our first job. Maybe you were a cashier, or camp counsellor, or babysitter. Maybe you were 14 or 15 when you got your first paycheck.
Now you’re fresh out of school, living on your own, and about to start your first full-time job. You’re excited about your career, your hand shakes as you sign the crisp new contract. You thank the HR manager and the associate who interviewed you. You’re on your way to the top!
But wait – what did you just sign?
Oftentimes, young workers sign employment contracts without understanding their content. Sometimes they don’t even read the contract. As a young person in a precarious job market, it’s easy to feel pressured to “take whatever you can get” and “just appreciate the opportunity.” But it is important to understand your contractual rights and obligations – even if you intend to take the job regardless.
Below is a brief explanation of some contractual clauses you should be aware of:
Probation: This clause typically refers to the period of time during which your employer can terminate your employment without termination pay. This period is typically 3 months because that is the length of time an employee covered by the Employment Standards Act (ESA) must work before becoming entitled to termination pay. If the probation clause is longer than 3 months, or if it allows your employer to extend the 3-months, it may be unlawful. You cannot contract out of the ESA.
Policies: This clause typically incorporates your employer’s workplace policies into your employment contract. This means that the workplace policies referred to govern your employment, so don’t ignore them! Your new employer should provide you a copy of all policies referred to in the contract so you can review them prior to signing. You do not want to be criticized for not following policies you have never seen!
Confidentiality: This clause is pretty self-explanatory, but is especially important for jobs that involve exposure to sensitive information such as trade secrets, inventions, and clients’ personal information. Some employment contracts incorporate separate confidentiality agreements with strict penalties for breach. Read these paragraphs closely to ensure you know your liability.
Non-Competition and Non-Solicitation: These clauses, also known as “restrictive covenants”, seek to limit your ability to compete with or solicit the customers and/or employees of your employer when your employment ends. These clauses are important as they may restrict your ability to seek new employment. Whether they are enforceable or not depends on the specific wording. Seek legal advice before agreeing to terms that inhibit your ability to work elsewhere!
Termination: Books have been written on these clauses! A more complete explanation will be the subject of another blog post. For now, know that it is important to pay attention to phrases like “with cause” or “just cause” and “without cause”. Does the contract say your entitlements upon termination are limited to those stipulated in the ESA? Such a clause may or may not be valid. This is where legal advice really comes in handy! You may not want to think about termination at the start of a new job, but preparing yourself from the start is better. Know your entitlements before you need them.
Of course, the best way to understand your particular contractual rights and obligations is to get legal advice. We can help. The ten minute phone call is worth the effort.