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Employment Contract With Equity for Canada

Employment Contract With Equity Template for Canada

A comprehensive employment agreement governed by Canadian law that combines traditional employment terms with equity-based compensation elements. The document establishes the fundamental employer-employee relationship while incorporating detailed provisions for share or option grants, vesting schedules, and shareholder rights. It ensures compliance with Canadian employment standards, securities regulations, and corporate law requirements across federal and provincial jurisdictions. The agreement includes specific provisions for confidentiality, intellectual property protection, and post-employment restrictions, alongside detailed equity compensation terms that align with Canadian securities regulations and tax implications.

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Employment Contract With Equity

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What is a Employment Contract With Equity?

The Employment Contract With Equity is designed for Canadian companies looking to attract and retain key talent by offering both employment security and company ownership opportunities. This document is particularly relevant for start-ups, scale-ups, and established companies implementing employee ownership programs. It combines standard employment provisions required under Canadian law with sophisticated equity compensation terms, making it suitable for high-value hires and strategic positions. The agreement ensures compliance with Canadian employment standards, securities laws, and tax regulations while protecting company interests through appropriate restrictive covenants. Typically used when hiring executives, senior managers, or key technical staff, this contract type reflects the growing trend of employee ownership in Canadian businesses and the need to align employee interests with company growth objectives.

What sections should be included in a Employment Contract With Equity?

1. Parties: Identification of the employer company and employee with full legal names and addresses

2. Background: Context of the employment relationship and brief description of the company's business

3. Definitions: Key terms used throughout the agreement, including equity-related terminology

4. Position and Duties: Job title, role description, responsibilities, and reporting relationship

5. Term and Commencement: Start date and term of employment (indefinite or fixed-term)

6. Compensation: Base salary, payment frequency, and review process

7. Equity Compensation: Overview of equity grant, type of securities, and basic terms

8. Benefits and Vacation: Health benefits, insurance, vacation entitlement, and other perks

9. Probationary Period: Length and terms of the probationary period if applicable

10. Confidentiality: Protection of company confidential information and trade secrets

11. Intellectual Property: Ownership and assignment of work-related intellectual property

12. Non-Competition: Restrictions on working for competitors during and after employment

13. Non-Solicitation: Restrictions on soliciting employees, customers, or suppliers

14. Termination: Grounds for termination and notice requirements

15. General Provisions: Standard contract clauses including governing law, amendments, and notices

What sections are optional to include in a Employment Contract With Equity?

1. Remote Work: Terms for working remotely, including equipment and expense provisions

2. Commission Structure: Details of sales commission or performance bonus structures for sales roles

3. International Travel: Terms for international work assignments and travel requirements

4. Change of Control: Special provisions triggered by company sale or merger

5. Garden Leave: Terms for paid leave during notice period

6. Severance Enhancement: Additional severance terms beyond statutory minimums

7. Professional Development: Terms for training, education support, and professional memberships

8. Relocation: Terms for relocation assistance and related expenses

What schedules should be included in a Employment Contract With Equity?

1. Schedule A - Equity Grant Terms: Detailed terms of equity grant, including number of shares/options, price, and vesting schedule

2. Schedule B - Shareholders Agreement Terms: Key provisions from shareholders agreement affecting employee shares

3. Schedule C - Vesting Schedule: Detailed vesting timeline and conditions for equity compensation

4. Schedule D - Job Description: Detailed description of role, responsibilities, and performance expectations

5. Schedule E - Benefits Summary: Comprehensive overview of all benefits and eligibility requirements

6. Schedule F - Share Option Plan: Complete terms of the company's share option plan

7. Appendix 1 - Restrictive Covenants Map: Geographic scope of non-compete and non-solicit obligations

8. Appendix 2 - Confidential Information Examples: Specific examples of confidential information covered by agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions






















































Clauses











































Relevant Industries

Technology

Software Development

Financial Services

Professional Services

Biotechnology

E-commerce

Healthcare Technology

Clean Technology

Manufacturing

Consulting

Media and Entertainment

Telecommunications

Artificial Intelligence

Digital Marketing

Life Sciences

Relevant Teams

Human Resources

Legal

Finance

Executive Leadership

Engineering

Product Development

Sales

Operations

Research and Development

Information Technology

Marketing

Business Development

Strategy

Corporate Development

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Chief Financial Officer

Chief Operating Officer

Vice President of Engineering

Vice President of Sales

Senior Software Engineer

Product Manager

Technical Lead

Senior Data Scientist

Head of Marketing

Director of Operations

Principal Architect

Senior Business Development Manager

Head of Research and Development

Chief Product Officer

Senior Account Executive

Director of Human Resources

Head of Strategy

Principal Consultant

Industries











Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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