The Importance of an Employment Contract Review

Written by on April 22, 2021 in Employment Law Blog, Employment Law Issues
Employment Contract Review

Imagine. You see a posting for your dream job. You apply. You go through the interview process. And… finally, you get a job offer! You can barely contain your excitement when they hand you an employment contract. But before you accept. And before you sign anything. It is important to hire an employment lawyer to review your contract.

Having a lawyer conduct an employment contract review is important for a number of reasons. The language that is used in an employment contract likely favours your employer and not you – in fact, in most cases you may even be giving up certain rights when you sign it. When your lawyer reviews your contract, they can suggest changes to it that will work to your benefit.

Employment Contract Review

The following are a few examples of why a contract review is essential:

Termination Clause

When employers terminate their employees, the employee has a right to reasonable notice or pay in lieu of notice. But depending on the wording in the termination clause of the contract, this right can be severely curtailed.

For example, say you are earning $75,0000 and stay with the company for 10 years. If you have a termination clause that caps what you are entitled to 8 weeks’ pay, being $11,538, or in some cases 18 weeks’ pay, being $25,961. But with a properly worded termination clause, you could receive up to 10 months’ pay or $62,500, or perhaps a greater sum depending on other factors.

Bonuses and Options

Sometimes what makes a job offer so attractive are the bonuses which are offered over and above the regular salary. But sometimes the employment contract can limit this or even try to prevent you from getting any bonuses at all if it states that bonuses are given at the sole discretion of the employer rather than being based on performance and other metrics.

Sometimes a contract might be worded to say that the employee is only eligible for bonuses while they are actively employed with the company. This means that if you are owed a bonus and terminated before receiving it, the employer will not pay it.


An exclusivity clause states that you must not work for any other employer, run a side business, or perhaps engage in certain volunteer activities like being on a Board of Directors.

If you have other interests or commitments outside of work, you may want to ask your employment lawyer to suggest an amendment which would allow you to continue on with your other activities.

Need an Employment Contract Review? Contact Minken Employment Lawyers Today!

Getting an offer for the job that you have always wanted is exciting. But in the excitement, it is important to make sure that you are not giving up your rights or agreeing to something that you can’t live with.

Having your employment contract reviewed by one of our lawyers will help to ensure that your new job gets off to the right start. Contact us today to speak with one of our lawyers.

Please note that this article is for informational purposes only and does not constitute legal advice.

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