{"id":326,"date":"2026-02-18T09:45:27","date_gmt":"2026-02-18T09:45:27","guid":{"rendered":"https:\/\/techajob.co.uk\/northgate\/?p=326"},"modified":"2026-06-11T19:47:17","modified_gmt":"2026-06-11T18:47:17","slug":"growing-your-team-in-ontario-ensure-your-employment-contracts-hold-up","status":"publish","type":"post","link":"https:\/\/techajob.co.uk\/northgate\/2026\/02\/18\/growing-your-team-in-ontario-ensure-your-employment-contracts-hold-up\/","title":{"rendered":"Growing Your Team in Ontario? Ensure Your Employment Contracts Hold Up"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"326\" class=\"elementor elementor-326\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-666a29fa e-flex e-con-boxed e-con e-parent\" data-id=\"666a29fa\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-463fb827 elementor-widget elementor-widget-text-editor\" data-id=\"463fb827\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<div data-breakout=\"normal\">\n<p id=\"viewer-pq8yr3760\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\"><span class=\"SWVek\">Global companies expanding into Ontario or establishing a Canadian presence may assume that once an employee signs an employment agreement, it\u2019s legally binding on the parties.&nbsp;<\/span><\/p>\n<p id=\"viewer-pq8yr3760\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\"><span class=\"SWVek\">&nbsp;<\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p id=\"viewer-vwqp3121\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\"><span class=\"SWVek\">This assumption is, however, false.&nbsp;<\/span><\/p>\n<p id=\"viewer-vwqp3121\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\"><span class=\"SWVek\">&nbsp;<\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p id=\"viewer-gepci127\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\"><span class=\"SWVek\">Regardless of where a business is headquartered, if there are Ontario-based employees, employment contracts must be Ontario-compliant. <\/span><\/p>\n<p class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\">For Israeli startups in particular, using parent-company templates or standard agreements drafted under Israeli or American norms can unintentionally violate Ontario statutory protections, and expose the company to costly claims.<\/p>\n<p class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\">\n<\/p><\/div>\n<div data-breakout=\"normal\">\n<p id=\"viewer-3qtcr131\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\"><span class=\"SWVek\">Here\u2019s what companies operating in Ontario need to know:<\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<ol class=\"KLNWl gpBvH\">\n<li class=\"bHcMT\" dir=\"auto\" aria-level=\"1\">\n<p id=\"viewer-26477135\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"\"><span class=\"SWVek\"><strong><em>Ontario employment law applies based on where the work is performed<\/em><\/strong><strong>&nbsp;<\/strong><\/span><\/p>\n<\/li>\n<\/ol>\n<\/div>\n<div data-breakout=\"normal\">\n<p id=\"viewer-lye83139\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\"><span class=\"SWVek\">Companies with Ontario-based employees cannot contract out of Ontario\u2019s minimum statutory entitlements per the <a class=\"f6ol- uOBW3\" href=\"https:\/\/www.ontario.ca\/laws\/statute\/00e41\" target=\"_blank\" rel=\"noopener\" data-hook=\"web-link\"><em><u>Employment Standards Ac<\/u><\/em><\/a><a class=\"f6ol- uOBW3\" href=\"https:\/\/www.ontario.ca\/laws\/statute\/00e41\" target=\"_blank\" rel=\"noopener\" data-hook=\"web-link\"><u>t<\/u><\/a>&nbsp;(the \u201c<strong>ESA<\/strong>\u201d). This includes rules around termination notice, vacation pay, public holidays, overtime, among other employer restrictions and employee entitlements.&nbsp;<\/span><\/p>\n<p id=\"viewer-lye83139\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\"><span style=\"font-size: 1rem;\"><br><\/span><\/p>\n<p id=\"viewer-lye83139\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\"><span style=\"font-size: 1rem;\">Some international employment agreements attempt to specify that another country\u2019s law governs the contract (<\/span><em style=\"font-size: 1rem;\">i.e.<\/em><span style=\"font-size: 1rem;\">, a clause stipulating \u201cThis Agreement shall be governed by and construed in accordance with the laws of the State of New York.\u201d). Ontario courts will, however, still apply the ESA if the employee\u2019s work is performed in Ontario.&nbsp;<\/span><\/p>\n<p id=\"viewer-lye83139\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\">\n<\/p><\/div>\n<div data-breakout=\"normal\">\n<p id=\"viewer-tgszg152\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\"><span class=\"SWVek\">This includes situations where:<\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<ul class=\"Lzei8 gpBvH\">\n<li class=\"bHcMT\" dir=\"auto\" aria-level=\"1\">\n<p id=\"viewer-xraij157\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"\"><span class=\"SWVek\">The employer company is incorporated outside of Ontario (or Canada);<\/span><\/p>\n<\/li>\n<li class=\"bHcMT\" dir=\"auto\" aria-level=\"1\">\n<p id=\"viewer-rm7gw160\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"\"><span class=\"SWVek\">Payroll is processed abroad; and\/or&nbsp;<\/span><\/p>\n<\/li>\n<li class=\"bHcMT\" dir=\"auto\" aria-level=\"1\">\n<p id=\"viewer-zwtci163\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"\"><span class=\"SWVek\">The employment contract was drafted or signed elsewhere.<\/span><\/p>\n<\/li>\n<\/ul>\n<\/div>\n<div data-breakout=\"normal\">\n<p id=\"viewer-6k8ar165\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\"><span class=\"SWVek\">Where employees split time between Ontario and somewhere in America, for example, or Tel Aviv, it is important to note that Ontario courts will prioritize where the work is actually performed over the language of the contract.<\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<ol class=\"KLNWl gpBvH\" start=\"2\">\n<li class=\"bHcMT\" dir=\"auto\" aria-level=\"1\">\n<p id=\"viewer-iv9gr169\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"\"><span class=\"SWVek\"><strong><em>Termination clauses carry particular risk<\/em><\/strong><\/span><\/p>\n<\/li>\n<\/ol>\n<\/div>\n<div data-breakout=\"normal\">\n<p id=\"viewer-z4hsb172\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\"><span class=\"SWVek\">Pursuant to the ESA, Ontario employees are entitled to certain minimum periods of <a class=\"f6ol- uOBW3\" href=\"https:\/\/www.ontario.ca\/document\/your-guide-employment-standards-act-0\/termination-employment#:~:text=In%20most%20cases%2C%20when%20an,written%20notice%20or%20termination%20pay.\" target=\"_blank\" rel=\"noopener\" data-hook=\"web-link\"><u>notice<\/u><\/a> &#8211; the time period before which the employment relationship will formally end, once the employer has informed the employee it will be ending.&nbsp;<\/span><\/p>\n<p id=\"viewer-z4hsb172\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\"><span class=\"SWVek\">&nbsp;<\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p id=\"viewer-l9nzk177\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\"><span class=\"SWVek\">If the employee has been continuously employed by the employer for three (3) months or more, in general the employer is required to provide the employee written notice of their termination, termination pay, or a combination of the two of them (as long as the total of the notice period and the weeks of termination pay equals the full notice period the employee is entitled to receive). The required notice increases with the employee\u2019s length of service, up to a statutory maximum of eight (8) weeks.<\/span><\/p>\n<p id=\"viewer-l9nzk177\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\"><span class=\"SWVek\">&nbsp;<\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p id=\"viewer-p8bcm180\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\"><span class=\"SWVek\">A termination clause is a provision in an employment agreement that sets out what the employee will receive if their employment is terminated without cause; clarifying (and ideally limiting) the employee\u2019s entitlements upon termination. It is, in effect, a risk management tool.<\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p id=\"viewer-rnsp0182\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\"><span class=\"SWVek\">Ontario courts will generally invalidate a termination clause, however, if:<\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<ul class=\"Lzei8 gpBvH\">\n<li class=\"bHcMT\" dir=\"auto\" aria-level=\"1\">\n<p id=\"viewer-9cgnf186\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"\"><span class=\"SWVek\">It violates the ESA minimums, even potentially;<\/span><\/p>\n<\/li>\n<li class=\"bHcMT\" dir=\"auto\" aria-level=\"1\">\n<p id=\"viewer-6o7l6189\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"\"><span class=\"SWVek\">It attempts to contract out of other statutory entitlements;<\/span><\/p>\n<\/li>\n<li class=\"bHcMT\" dir=\"auto\" aria-level=\"1\">\n<p id=\"viewer-akv15192\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"\"><span class=\"SWVek\">It contains ambiguous or inconsistent wording; and\/or&nbsp;<\/span><\/p>\n<\/li>\n<li class=\"bHcMT\" dir=\"auto\" aria-level=\"1\">\n<p id=\"viewer-t6t3g195\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"\"><span class=\"SWVek\">It fails to address the continuation of certain employee benefits upon termination.<\/span><\/p>\n<\/li>\n<\/ul>\n<\/div>\n<div data-breakout=\"normal\">\n<p id=\"viewer-rrfry197\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\"><span class=\"SWVek\">If voided, the entire clause will be treated as though it did not exist, and the <strong>common law entitlements<\/strong>, which are significantly higher than those of the ESA minimums, will become the default.<\/span><\/p>\n<p id=\"viewer-rrfry197\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\"><span class=\"SWVek\">&nbsp;<\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p id=\"viewer-pnw6e202\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\"><span class=\"SWVek\">For multinational organizations, the financial implications of this switch could be substantial. A senior employee with several years of service may be entitled to 12, 18, or even 24 months of compensation at common law; far exceeding ESA minimums.<\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<ol class=\"KLNWl gpBvH\" start=\"3\">\n<li class=\"bHcMT\" dir=\"auto\" aria-level=\"1\">\n<p id=\"viewer-jnmyh207\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"\"><span class=\"SWVek\"><strong><em>Non-compete clauses are sensitive<\/em><\/strong><\/span><\/p>\n<\/li>\n<\/ol>\n<\/div>\n<div data-breakout=\"normal\">\n<p id=\"viewer-7rdey209\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\"><span class=\"SWVek\">While non-compete clauses are standard in many jurisdictions, Ontario generally <a class=\"f6ol- uOBW3\" href=\"https:\/\/www.ontario.ca\/document\/your-guide-employment-standards-act-0\/non-compete-agreements\" target=\"_blank\" rel=\"noopener\" data-hook=\"web-link\"><u>prohibits them<\/u><\/a> (subject to certain narrow exceptions provided for in the ESA). A foreign parent company accustomed to stronger post-employment restrictions may assume its standard template is enforceable in Ontario, but courts here are highly critical of such clauses.<\/span><\/p>\n<p id=\"viewer-7rdey209\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\"><span class=\"SWVek\">&nbsp;<\/span><\/p>\n<p class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\">A carefully drafted non-solicitation clause may provide more realistic protection for global companies with employees in Ontario.<\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<ol class=\"KLNWl gpBvH\" start=\"4\">\n<li class=\"bHcMT\" dir=\"auto\" aria-level=\"1\">\n<p id=\"viewer-1czes218\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"\"><span class=\"SWVek\"><strong><em>\u201cConsideration\u201d matters&nbsp;<\/em><\/strong><\/span><\/p>\n<\/li>\n<\/ol>\n<\/div>\n<div data-breakout=\"normal\">\n<p id=\"viewer-ditkj221\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\"><span class=\"SWVek\">The fundamental contract law principle of \u201cconsideration\u201d refers to something of value exchanged between the parties. It is a key requirement for the contract to be valid.<\/span><\/p><p id=\"viewer-ditkj221\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\"><span class=\"SWVek\"><br><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p id=\"viewer-i3dw1223\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\"><span class=\"SWVek\">For new employees, the offer of employment is itself valid consideration for the terms of the employment agreement. However, for existing employees, continued employment alone is generally <a class=\"f6ol- uOBW3\" href=\"https:\/\/www.canlii.org\/en\/on\/onca\/doc\/2024\/2024onca437\/2024onca437.html\" target=\"_blank\" rel=\"noopener\" data-hook=\"web-link\"><u>not sufficient consideration in Ontario<\/u><\/a>. The employee must receive something new and tangible in exchange for signing, such as:<\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<ul class=\"Lzei8 gpBvH\">\n<li class=\"bHcMT\" dir=\"auto\" aria-level=\"1\">\n<p id=\"viewer-wvoit229\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"\"><span class=\"SWVek\">A signing bonus;<\/span><\/p>\n<\/li>\n<li class=\"bHcMT\" dir=\"auto\" aria-level=\"1\">\n<p id=\"viewer-xslkg232\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"\"><span class=\"SWVek\">A salary increase;<\/span><\/p>\n<\/li>\n<li class=\"bHcMT\" dir=\"auto\" aria-level=\"1\">\n<p id=\"viewer-fk34i235\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"\"><span class=\"SWVek\">A promotion;<\/span><\/p>\n<\/li>\n<li class=\"bHcMT\" dir=\"auto\" aria-level=\"1\">\n<p id=\"viewer-lrsww238\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"\"><span class=\"SWVek\">Additional vacation; or&nbsp;<\/span><\/p>\n<\/li>\n<li class=\"bHcMT\" dir=\"auto\" aria-level=\"1\">\n<p id=\"viewer-rpzsp241\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"\"><span class=\"SWVek\">A one-time lump sum payment<\/span><\/p>\n<\/li>\n<\/ul>\n<\/div>\n<div data-breakout=\"normal\">\n<p id=\"viewer-fmxvh243\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"auto\"><span class=\"SWVek\">Global companies \u201crolling out\u201d updated global templates to existing employees should take note. This practice could default employee entitlements to the common law regime.<\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<ol class=\"KLNWl gpBvH\" start=\"5\">\n<li class=\"bHcMT\" dir=\"auto\" aria-level=\"1\">\n<p id=\"viewer-1lt17247\" class=\"EcgWU aKYSf gpBvH HPRgD\" dir=\"\"><span class=\"SWVek\"><strong><em>Conclusion&nbsp;<\/em><\/strong><\/span><\/p>\n<\/li>\n<\/ol>\n<\/div>\n<div data-hook=\"rcv-block42\">Expanding into Ontario is an exciting step for a tech startup or an established global company; however, adding Ontario-based employees to your payroll also carries significant risk. Ontario employment agreements must be drafted for Ontario. Anything less is a liability.<\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Global companies expanding into Ontario or establishing a Canadian presence may assume that once an employee signs an employment agreement, it\u2019s legally binding on the parties. This assumption is, however,&hellip;<\/p>\n","protected":false},"author":1,"featured_media":328,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-326","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insights"],"_links":{"self":[{"href":"https:\/\/techajob.co.uk\/northgate\/wp-json\/wp\/v2\/posts\/326","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/techajob.co.uk\/northgate\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/techajob.co.uk\/northgate\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/techajob.co.uk\/northgate\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/techajob.co.uk\/northgate\/wp-json\/wp\/v2\/comments?post=326"}],"version-history":[{"count":11,"href":"https:\/\/techajob.co.uk\/northgate\/wp-json\/wp\/v2\/posts\/326\/revisions"}],"predecessor-version":[{"id":943,"href":"https:\/\/techajob.co.uk\/northgate\/wp-json\/wp\/v2\/posts\/326\/revisions\/943"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/techajob.co.uk\/northgate\/wp-json\/wp\/v2\/media\/328"}],"wp:attachment":[{"href":"https:\/\/techajob.co.uk\/northgate\/wp-json\/wp\/v2\/media?parent=326"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/techajob.co.uk\/northgate\/wp-json\/wp\/v2\/categories?post=326"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/techajob.co.uk\/northgate\/wp-json\/wp\/v2\/tags?post=326"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}