The Importance of the Word Minimum in Employment Contract Termination Clauses

When an employee is hired, they need to sign an employment contract. An employment agreement is considered to be a form of an agreement between employee and employer. Moreover, the right can clearly define the rights and responsibilities of both parties.

It has been observed by Toronto employment lawyers that some employers don’t feel the need to introduce employee contracts. Even if an employer introduces a contract, sometimes it may not contain any termination clause. In this respect, it should be kept in mind that without any termination clause, the claims or compensation can be huge. Hence, employment attorneys often advice employers to introduce termination clause with employee entitlements, which can easily limit the damage claim even when a person is terminated without a clause.

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Entitlement of Employee

Generally, it is seen that an employee is entitled to receive reasonable notice in case they are terminated from their employment. However, a termination clause present within the employment contract can overthrow the employer’s commitment to provide any form of reasonable notice, without violating employment standards in any ways.

In case, an employer wants to remove an employee, then the employer is bound to provide the employee with a minimum notice period. Basically, Toronto employment lawyers states that when an employee is terminated from their job, without a cause then minimum notice should be avoided. In case the employee is not provided any notice term, then payment in lieu of notice should be provided. Moreover, the contract apart from providing notice provision or payment on behalf of notice period, may relate to the rights that an employee is due to receive in relation to the termination of the employment.


Employment Contract Termination Clause

The termination clause within the employment contract may vary from one company to another. However, some basic provision contained within the contract remains same. For example, the common law notice period in case of an employee being terminated without cause is done in order to limit the entitlements to a bare minimum.

Any reputed employment attorneys can easily guide individuals to learn about the minimum standards that are mentioned within the Employment Standards Act. According to Toronto employment lawyers, the provisions within the Employment Standards Act can include allocation for minimum benefits which can be provided to employee during the notice period.

An employer can terminate the employment of an employee without giving any notice period or even less notice period that is usually stated under the section of Employment Standards Act. However, care should be taken so that the employee is paid in lump sum which should be equal to the amount that the employee would have received in case the notice period was given.

Toronto employment lawyers can easily ensure that the employment contract is having the term ‘minimum’ within the clause. Without the word minimum, a person won’t be able to enjoy the minimum basic requirements of employment standards.

Hence, Toronto employment lawyers state that employers while drafting the termination clause should see to it that the word ‘minimum’ is included along with employment standard. It would diminish the need for paying huge amount of money in case compensation claim is filed by an employee.