Many employees sign employment contracts without fully understanding what they're agreeing to. Some clauses that appear standard can dramatically reduce your legal rights — particularly if you're ever terminated. Having a lawyer review your contract before signing is one of the best legal investments you can make.
Key Clauses to Watch For
Termination Clauses
This is the most important clause. A well-drafted termination clause can limit your severance to the ESA minimum — often just a few weeks — even after years of service. Without such a clause, you're entitled to common law reasonable notice, which can be significantly more.
Non-Compete Clauses
Ontario law significantly restricted non-compete agreements for most employees in 2021. Agreements that prevent you from working for competitors for a period after leaving are generally unenforceable for non-executive employees in Ontario — but they're still included and can still affect your next job search.
Non-Solicitation Clauses
These prevent you from soliciting the company's clients or employees after leaving. These are more likely to be enforceable than non-competes if they're reasonable in scope and duration.
Bonus and Commission Clauses
Watch for language that says bonuses are "at the company's discretion" or that you must be employed on the payment date. This language can be used to deny you earned compensation if you're terminated.
When to Get a Review
Ideally before you sign. But if you're already employed, reviewing your contract is still valuable — especially if you're considering leaving or facing potential changes to your role.