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Fixed Term Contract Letter Template for Canada

A Fixed Term Contract Letter is a formal employment document used in Canada to establish a temporary employment relationship with a defined start and end date. It outlines all essential terms of employment including compensation, benefits, duties, and termination provisions, while ensuring compliance with Canadian federal and provincial employment standards. The document serves as a legally binding agreement between the employer and employee, incorporating necessary provisions for workplace rights and obligations under Canadian law, including relevant provincial employment standards and human rights legislation.

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What is a Fixed Term Contract Letter?

The Fixed Term Contract Letter is a crucial document used in Canadian employment law when establishing temporary employment relationships for specific projects, seasonal work, or coverage for leaves of absence. It provides a clear framework for both employer and employee by specifying the exact duration of employment, along with comprehensive details about roles, responsibilities, compensation, and benefits. This document type is particularly important in Canada as it must comply with both federal and provincial employment standards, ensuring proper treatment of fixed-term employees and clear distinction from permanent employment arrangements. The letter should be carefully drafted to address specific provincial requirements regarding termination notice, statutory benefits, and other employment standards that vary by jurisdiction.

What sections should be included in a Fixed Term Contract Letter?

1. Letter Date and Address Block: Formal letter heading including date and recipient's full address

2. Salutation: Personal greeting to the employee

3. Opening Paragraph: Statement of employment offer and position title

4. Term of Employment: Clear specification of start and end dates of the fixed-term contract

5. Role and Responsibilities: Overview of the position and key duties

6. Compensation: Salary/wages, payment frequency, and any guaranteed bonuses

7. Hours of Work: Standard working hours, schedule, and overtime arrangements

8. Benefits: Overview of benefits package and eligibility

9. Vacation and Leave: Vacation entitlement, statutory holidays, and other leave provisions

10. Termination Provisions: Conditions for early termination and notice requirements

11. Confidentiality: Basic confidentiality obligations

12. Governing Law: Statement that the contract is governed by Canadian law

13. Acceptance: Signature blocks and acceptance deadline

What sections are optional to include in a Fixed Term Contract Letter?

1. Probationary Period: Include if the role has an initial probationary period, even within the fixed term

2. Remote Work Arrangements: Include if the position involves any remote work components

3. Performance Bonus: Include if the role includes any performance-based compensation

4. Professional Development: Include if specific training or development opportunities are provided

5. Travel Requirements: Include if the position requires business travel

6. Post-Employment Restrictions: Include if non-compete or non-solicitation terms are required

7. Intellectual Property: Include if the role involves creation of IP or creative work

8. Equipment and Resources: Include if specific company equipment or resources are provided

What schedules should be included in a Fixed Term Contract Letter?

1. Schedule A - Job Description: Detailed description of role, responsibilities, and reporting relationships

2. Schedule B - Benefits Summary: Detailed overview of all benefits and eligibility requirements

3. Schedule C - Company Policies: List of key company policies that form part of the employment terms

4. Schedule D - Confidentiality Agreement: Detailed confidentiality terms and requirements

5. Schedule E - Remote Work Policy: Detailed guidelines for remote work if applicable

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

Jurisdiction

Canada

Cost

Free to use

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