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Fixed Term Employment Contract for Canada

Fixed Term Employment Contract Template for Canada

A Fixed Term Employment Contract is a legally binding agreement governed by Canadian employment law that establishes a defined period of employment with a specific start and end date. This document outlines the terms and conditions of temporary employment, including compensation, benefits, duties, and termination provisions, while ensuring compliance with both federal and provincial employment standards. It provides clear parameters for both employer and employee regarding the temporary nature of the engagement, protecting both parties' interests and establishing clear expectations for the duration of the employment relationship.

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Fixed Term Employment Contract

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What is a Fixed Term Employment Contract?

Fixed Term Employment Contracts are utilized in Canadian business contexts when organizations require temporary staff for specific projects, seasonal work, or coverage for permanent employees on leave. This contract type is particularly relevant for project-based roles, interim positions, or situations where funding or work requirements are time-limited. The Fixed Term Employment Contract must comply with both federal and provincial employment standards, including minimum wage requirements, statutory holidays, vacation pay, and termination provisions. It's essential to clearly specify the employment duration, responsibilities, compensation, and benefits while ensuring adherence to applicable human rights legislation and employment standards. This document serves as a crucial tool for organizations managing temporary staffing needs while maintaining legal compliance and protecting both employer and employee interests.

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

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

2. Background: Context of the employment relationship and acknowledgment of the fixed-term nature of the contract

3. Definitions: Key terms used throughout the agreement

4. Term of Employment: Specific start and end dates of the fixed-term employment period

5. Position and Duties: Job title, reporting relationship, and key responsibilities

6. Work Location and Hours: Primary workplace location and standard working hours

7. Compensation: Base salary, payment frequency, and method of payment

8. Benefits: Health benefits, insurance, and other standard benefits provided

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

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

11. Company Property: Treatment and return of company assets and materials

12. Early Termination: Conditions and process for ending the contract before the fixed term expires

13. Governing Law: Specification of applicable Canadian province and laws

14. Entire Agreement: Integration clause confirming the contract represents the complete agreement between parties

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

1. Probationary Period: Include when the employer wishes to establish an initial trial period, if permitted by provincial law for fixed-term contracts

2. Overtime: Include for positions eligible for overtime pay, specifying calculation and compensation method

3. Commission Structure: Include for sales positions or roles with performance-based compensation

4. Remote Work Provisions: Include when the role involves regular remote work arrangements

5. Intellectual Property: Include when employee may create IP during employment

6. Non-Competition: Include when reasonable restrictions on post-employment competition are necessary (use with caution in Canada)

7. Non-Solicitation: Include to prevent solicitation of employees or customers post-employment

8. Travel Requirements: Include when position requires regular travel and expense arrangements

9. Performance Bonus: Include when offering performance-based incentives

10. Professional Development: Include when offering training or education benefits

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

1. Schedule A - Job Description: Detailed outline of position responsibilities and requirements

2. Schedule B - Compensation Details: Breakdown of salary, benefits, and any variable compensation

3. Schedule C - Company Policies: Key workplace policies applicable to the employee

4. Schedule D - Benefit Plans: Details of applicable insurance and benefit plan coverage

5. Appendix 1 - Confidential Information: Specific details of confidential information and handling requirements

6. Appendix 2 - Company Equipment: List of company property provided to employee

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






























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Relevant Industries

Technology

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Project Manager

Contract Developer

Seasonal Worker

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HR Consultant

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Sales Representative

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Administrative Assistant

Industries










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