Casual Legal: Considerations for Drafting Employment Agreements

DISCLAIMER: This article is meant to provide information to Alberta Municipalities members only and is not intended to provide legal advice. You should seek the advice of legal counsel to address your specific set of circumstances. Although every effort has been made to provide current and accurate information, changes to the law may cause the information in this article to be outdated. This content is not intended for the general public.

By Maddison Croden
Reynolds Mirth Richards Farmer LLP
Alberta Municipalities Casual Legal Service Provider 

Employment agreements can and do often take a variety of forms. A written contract of employment is not a legal requirement but often provides significant benefits over an oral agreement. A written contract of employment provides a higher degree of certainty to the parties as to what is being agreed to, it clarifies and sets expectations, and it encourages the parties to consider important issues at the beginning of the employment relationship. As a result, a written employment agreement is preferrable to an oral “handshake deal”.

Employment agreements can be adapted to fit the context of the particular employee and position. While these agreements can vary, greatly, in terms of form and complexity, it is important for parties to consider the following basic terms when preparing their employment agreements:

1.    Commencement Date and Duration – When will this employee be starting work? Will the contract continue for an indefinite basis, or is the position only for a fixed term with a defined end date?

2.    Job Description – What is this employee being hired to do? A high-level description of the job duties of the employee helps to set the expectations for both employers and employees.

3.    Compensation – What is this employee going to be paid? How often will they be paid? Is the employee entitled to participate in any group insurance benefits? Are there any additional bonuses or RRSP/savings contributions this employee will be entitled to?

4.    Hours and Location of Work – Where will this employee report to work? Is this a remote or in-person position? What hours of the day are they expected to be available?

5.    Employer Policies – Most employers have numerous policies containing the detailed expectations and processes that employees are required to follow, including items like dress code or respect in the workplace. It is often helpful to incorporate those policies into the employment agreement by reference. Again, this helps to ensure that both parties know and acknowledge expectations.

6.    Termination – On what terms can the parties end the employment relationship? What are the obligations of each party upon termination? Provisions dealing with these issues require careful drafting and special attention to the Employment Standard Code. Employers should seek legal advice when incorporating these types of provisions into their employment agreements.

To access Alberta Municipalities Casual Legal Helpline, Alberta Municipalities members can call toll-free to 1-800-661-7673 or casuallegal [at] abmunis.ca (email) to reach the municipal legal experts at Reynolds Mirth Richards and Farmer LLP. For more information on the Casual Legal Service, please call 310-MUNI (6864) or riskcontrol [at] abmunis.ca (email) to connect with Alberta Municipalities Risk Management staff. Any Regular or Associate member of Alberta Municipalities can access the Casual Legal Service.