News & Legal Commentary

Employment contract. Consult with a Toronto employment lawyer today.

What Employees in Ontario Need to Know Before Signing an Employment Contract in 2025

byLecker & Associates | Employment Contracts

If you’re starting a new job or transitioning roles, one of the most important documents you’ll encounter is your employment contract. Before putting pen to paper, it’s critical to understand what you’re agreeing to, as employment contracts are legally binding agreements that may significantly impact your rights and obligations.

At Lecker & Associates, we’ve helped thousands of Ontario employees navigate the complexities of employment contracts. Here’s what you need to know before signing yours.

What Is an Employment Contract?

An employment contract is a formal agreement between you and your employer that outlines the terms and conditions of your employment. It can be written or verbal, but written contracts provide much clearer evidence of your rights and responsibilities, as well as your employer’s obligations to you.

 Most employment contracts typically outline terms governing your

  • Position title and duties
  • Compensation and benefits
  • Work hours and overtime
  • Vacation entitlement

In some cases, contracts will also include clauses covering

  • Confidentiality and non-disclosure
  • Non-solicitation and non-compete
  • Termination terms and severance provisions

While employment contracts can vary in their terms, Ontario’s Employment Standards Act (ESA) establishes the minimum requirements that employers must meet, covering areas such as minimum wage, public holidays, or severance pay. Employers can always offer more than these minimums, but they can’t legally provide less, even if you agree to it. In Ontario, the common law typically gives employees greater rights than the ESA, especially when it comes to termination pay or severance. However, you might unknowingly give up some of these rights by signing a contract that meets ESA standards but is less generous than what common law provides.

Never Sign Without Understanding the Terms

When you sign an employment contract, you’re legally bound by what’s in it. Most employers mean well, but some include terms that protect their interests more than yours. By signing the contract, you are effectively saying that you agree to its terms, even if you haven’t fully read or understood them, which means you may be accepting limits or obligations that restrict your options or leave you vulnerable.

Despite all the ways employment contracts differ, there are a few areas where employees are most likely to run into issues or face unfavourable terms.

  • Overly restrictive non-compete or non-solicitation clauses that limit your future employment options in your field or prevent you from working with certain clients, even though you’re no longer working for your employer. A non-compete or non-solicitation clause exists to protect your employer’s business interests after you leave the company, but sometimes employers take these protections too far. For example, Sydney Norton had worked as a pharmacist for M & P Drug Mart Inc. for 40 years when he resigned and took a job with a different pharmacy, which was in violation of the non-compete clause he had agreed to. The covenant essentially prohibited Mr. Norton from doing any kind of work for a company even remotely similar to his previous workplace for one year after leaving the position for any reason whatsoever. Unsurprisingly, the judge found these terms to be too broad and unreasonable to enforce. Generally, non-compete clauses are unenforceable in Ontario since the Working for Workers Act came into effect in 2021, which prohibits their inclusion in employment contracts except in a few circumstances, like high-level executives or the sale of a business.  
  • Insufficient termination or severance provisions that leave you with inadequate compensation if your employment ends. Termination clauses establish how and when either you or your employer can end your employment, including the notice period and the grounds for termination (such as misconduct, poor performance, ineligibility, or layoff), as well as what severance pay you are entitled to upon termination without cause. These provisions are meant to bring clarity and fairness, reducing the risk of disputes or wrongful termination; however, sometimes employers cut corners. For example, Marcela Garreton was terminated for cause after working for Complete Innovations Inc. for roughly two years. While her contract met ESA severance standards at the time, it would have violated the ESA if she had continued her employment with the company for over five years. The Court found that even potential future violations nullify a clause and make it unenforceable. Ms. Garreton was awarded $25,000 for wrongful dismissal. Even clauses that seem compliant can limit your rights down the line. Understanding your contract and your rights can help you avoid being shortchanged if you’re ever let go.
  • Ambiguous language around duties or performance expectations that make you vulnerable to unfair performance evaluations or increased responsibility without increased compensation. These clauses are meant to clearly define your role and responsibilities. Ambiguous language opens you up to the risk of unfair performance reviews, like in the case of Esther Brake. Ms. Brake had worked for McDonald’s for nearly 20 years when she was dismissed for poor performance. Prior to her dismissal, she was placed on a progressive discipline program, with 90 days to achieve the goals that she and her employer had agreed to. Despite achieving nearly all the objectives, her employer took the position that she had failed and effectively dismissed her. The Court ultimately found that the goals set for Ms. Brake were arbitrary and unfair.  
  • Unclear probationary periods leave room for confusion about job security. The purpose of a probationary period is to allow both you and your employer a trial period to ensure you’re suitable for the position. For employers, it’s a chance to evaluate the employee’s performance, reliability, and fit within the team before confirming permanent employment. For the employee, it’s a chance to see whether the role and environment meet your expectations. However, because it’s meant to be a temporary trial period, employees have limited legal protections during this phase, which is why it is essential to be clear about the duration and evaluation expectations. Alexander Nagribianko wasn’t so lucky. The entirety of the probation clause in his contract was simply, “Probation…Six months.” When he was terminated before the end of the six-month period, Mr. Nagribianko sued for wrongful dismissal, claiming that because the clause was only two words long, it was unclear and thus unenforceable. However, the Court found that it was clear and, as such, enforceable. As a result, Mr. Nagribianko did not receive the standard set out by common law because he had agreed to the six-month period. Cases like this are a perfect example of why it is essential to understand the terms of your contract before you sign it. Without careful review, you could unintentionally give up rights that might have been negotiable with the right legal knowledge and guidance. Our expert employment lawyers at Lecker & Associates can help you understand your contract, protect your rights, and negotiate terms that work in your best interest.

Why You Should Consult an Employment Lawyer Before Signing

No two employment contracts are exactly alike. What might be reasonable for one role could be unfair or risky in another. An employment lawyer can

  • Review your contract for unfair or illegal clauses
  • Explain how the terms affect your rights and obligations
  • Advise on negotiation strategies to improve your contract terms
  • Help you understand your options if you feel pressured to sign quickly

Protect Your Career and Your Future

Don’t let an employment contract become a source of confusion or conflict down the road. Taking the time to fully understand the agreement before signing can save you significant stress, money, and legal headaches later.

At Lecker & Associates, we’re dedicated to protecting Ontario employees’ rights. If you have questions about your employment contract or need advice before signing, book a no-charge assessment with our experienced employment lawyers in Toronto.

📞 Call 647-694-2797 or book your no charge assessment today.

Testimonials from Employees Like You

Posted on Google Google
Gaz Kondaj profile picture
Gaz Kondaj
2026-10-29
Google star 1Google star 2Google star 3Google star 4Google star 5Trustindex verifies that the original source of the review is Google.
I cannot speak highly enough of Lecker & Associates and the exceptional legal representation and support I received from Kimberley, Ian, and Tina. From the very beginning, Kimberley demonstrated an outstanding level of professionalism, legal expertise, and strategic thinking. Her confidence, attention to detail, and thorough understanding of the legal process were instrumental in guiding the team toward a remarkable victory. Her ability to navigate complex challenges while remaining focused, composed, and determined truly sets her apart. Ian and Tina were equally exceptional, providing invaluable support, clear communication, and dedication throughout the entire process. Together, they demonstrated what a strong, knowledgeable, and committed legal team can accomplish. What impressed me most was not only the successful outcome, but also the integrity, professionalism, and genuine commitment they demonstrated every step of the way. It was reassuring to know that my matter was in such capable hands. A special thank you to Kimberley for her exceptional leadership, expertise, and determination in achieving such a fantastic result. I wholeheartedly recommend Lecker & Associates to anyone seeking outstanding legal representation. An exceptional team that delivers results and truly earns your trust!
Posted on Google Google
Jose Duran profile picture
Jose Duran
2026-10-18
Google star 1Google star 2Google star 3Google star 4Google star 5Trustindex verifies that the original source of the review is Google.
This is the second time I have turned to Lecker & Associates for assistance with a work-related legal matter, and once again, the experience has exceeded my expectations. Counsel Jordan Reiner provided exceptional support throughout the process, demonstrating a thorough and thoughtful assessment of my situation, sound guidance grounded in experience, and a genuinely client-centered approach. He took the time to understand the circumstances, clearly explained my options, and provided the professional guidance and reassurance needed to navigate the matter with confidence. Thanks to his expertise, diligence, and commitment to achieving the best possible outcome, my legal matter was resolved successfully. It is reassuring to know that I can rely on a firm that combines legal expertise with a genuine commitment to its clients. I highly recommend Counsel Jordan Reiner and Lecker & Associates to anyone seeking knowledgeable, professional, and results-oriented legal representation, particularly in employment-related matters. Their consistent quality of service is the reason I have returned to the firm, and I would not hesitate to seek their assistance again.
Posted on Google Google
Barbara M. profile picture
Barbara M.
2026-10-09
Google star 1Google star 2Google star 3Google star 4Google star 5Trustindex verifies that the original source of the review is Google.
I had a great experience and outcome with the help of Nathan Whitteningham-Paralegal. He was professional and knowledgeable. He was always available to answer my many questions, explained my rights, and outlined the best approach to handle my situation with confidence. Though it felt like an eternity, Nathan was able to wrap up matters in quick order. I highly recommend his services.
Posted on Google Google
Yashraj Gandhi profile picture
Yashraj Gandhi
2026-10-08
Google star 1Google star 2Google star 3Google star 4Google star 5Trustindex verifies that the original source of the review is Google.
I had an excellent experience working with Jordan Reiner and Ashley Hussey on my case. They were professional, knowledgeable, responsive, and genuinely supportive throughout the process. I truly appreciate their dedication and the quality of service they provided. Highly recommended!
Posted on Google Google
xi li profile picture
xi li
2026-10-07
Google star 1Google star 2Google star 3Google star 4Google star 5Trustindex verifies that the original source of the review is Google.
I had a very positive experience with Lecker & Associates throughout my employment matter. Ashley Hussey and Ms. Ponniah were both professional, responsive, knowledgeable, and supportive throughout the process. They explained the process clearly, kept me informed, and handled my matter with care and professionalism. I truly appreciate their hard work and guidance, and I would recommend Lecker & Associates to anyone looking for professional assistance with an employment matter.
Posted on Google Google
Syrrel Cabiling profile picture
Syrrel Cabiling
2026-10-07
Google star 1Google star 2Google star 3Google star 4Google star 5Trustindex verifies that the original source of the review is Google.
I had the pleasure of being represented by Soniya regarding my employment matters. Soniya, Ashley, and Melissa were prompt, organized, and responsive throughout the process, ensuring that all of my questions and concerns were addressed. I truly appreciated their professionalism, guidance, and commitment to protecting my best interests. I would highly recommend their services.
Posted on Google Google
Uma Seetal profile picture
Uma Seetal
2026-10-03
Google star 1Google star 2Google star 3Google star 4Google star 5Trustindex verifies that the original source of the review is Google.
I’m extremely grateful for all the help and guidance I received with my employment matter. Matthew Fisher was incredibly knowledgeable, supportive, and genuinely dedicated to fighting for me. They took the time to explain everything clearly, answer all of my questions, and guide me through every step of the process. Eslita was excellent — very responsive, organized, and proactive with communication, which made everything feel smooth and well-managed. I truly appreciate the time, effort, and care that went into my case. I would absolutely recommend Matthew to anyone who needs someone knowledgeable and committed to fighting for their rights.
Posted on Trustindex Trustindex
Joanne Bissonnette profile picture
Joanne Bissonnette
2026-09-25
Trustindex star 1Trustindex star 2Trustindex star 3Trustindex star 4Trustindex star 5Trustindex verifies that the original source of the review is Trustindex.
Awesome Team ⭐⭐⭐⭐⭐ "Thank you so much to Soniya Ponniah and Ashley Hussey at Lecker & Associates. You provided wonderful support, guidance, and clear communication throughout this employment law matter. Your exceptional legal counsel and strategic management led directly to a successful and highly agreeable resolution. I highly recommend your legal services. Thank you again!"
Posted on Google Google
Terrion Linton profile picture
Terrion Linton
2026-09-23
Google star 1Google star 2Google star 3Google star 4Google star 5Trustindex verifies that the original source of the review is Google.
⭐⭐⭐⭐⭐ Excellent Employment Law Firm I had an excellent experience working with Lecker & Associates regarding an employment matter. From the beginning, I was treated with professionalism, respect, and genuine care. I would especially like to thank Ms. Soniya Ponniah and Ashley Hussey for their outstanding guidance, communication, and support throughout the entire process. They took the time to answer my questions, kept me well informed, and made sure I understood each step along the way. Their professionalism and attention to detail gave me confidence that my matter was in capable hands. What stood out to me most was how responsive, knowledgeable, and respectful they were. Dealing with an employment matter can be stressful, and having experienced professionals supporting and guiding you makes a significant difference. I am extremely grateful for the service I received and would confidently recommend Lecker & Associates to anyone seeking professional and knowledgeable employment-law assistance. A sincere thank you to Ms. Soniya Ponniah, Ashley Hussey, and the entire Lecker & Associates team for your exceptional service, professionalism, and support.
Posted on Google Google
Moumita Tasmin profile picture
Moumita Tasmin
2026-09-16
Google star 1Google star 2Google star 3Google star 4Google star 5Trustindex verifies that the original source of the review is Google.
I had a helpful and informative consultation with Nathan Whittingham. He was professional, attentive, and took the time to explain my options clearly. The consultation is a paid service, but I found the guidance valuable and appreciated his time and professionalism.

Breathe Easy, We’ve Got This

Reputation Matters