Question: When we first started the company we did not require our employees to sign an employment contract upon hiring. We have since implemented a policy of having new hires sign written employment contracts and are wondering if we can also ask our existing employees to do the same.
Answer: Generally, an employer cannot insist existing employees sign a written employment contract without providing some new consideration or benefit to the employee. Quite innocently, the employer may be altering rights employees have gained through tenure. Therefore, insisting on a new written contract could amount to constructive dismissal. If employees do not receive any consideration for the alteration of existing rights, the contract may be challenged later in court and found to be unenforceable.
The easiest way for an employer to implement a written contract with an existing employee is to do so when the employee is being offered a raise or promotion, and to make such offer conditional on the execution of a written employment contract.
Peter Israel, leader of the human resources management group at Goodman and Carr LLP, Toronto, is editorial consultant to Canadian Employment Law Today. He has more than 20 years of experience in employment and labour law. He can be reached at [email protected] or (416) 595-2323.
Answer: Generally, an employer cannot insist existing employees sign a written employment contract without providing some new consideration or benefit to the employee. Quite innocently, the employer may be altering rights employees have gained through tenure. Therefore, insisting on a new written contract could amount to constructive dismissal. If employees do not receive any consideration for the alteration of existing rights, the contract may be challenged later in court and found to be unenforceable.
The easiest way for an employer to implement a written contract with an existing employee is to do so when the employee is being offered a raise or promotion, and to make such offer conditional on the execution of a written employment contract.
Peter Israel, leader of the human resources management group at Goodman and Carr LLP, Toronto, is editorial consultant to Canadian Employment Law Today. He has more than 20 years of experience in employment and labour law. He can be reached at [email protected] or (416) 595-2323.
