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Employment Contracts Fewer headaches for employer and employee â—— One of the best reasons for starting
This article is the second in a series to introduce a prototype employment contract for members to consider in the future. The goal is to inform all members of some of their basic employment rights to permit more informed negotiations of future contracts. Since employment laws are provincially regulated, these comments will not replace the need for local legal assistance in individual cases.
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employment with a written contract is that the parties can define the manner in which it will end. This can occur without the pressure of an actual dispute. The rules can be set at the beginning. To set the rules, a number of considerations must be agreed upon. All jurisdictions have some statutory employment standards. In many provinces, notice after three months of service equates to one week for every completed year, to a maximum of eight weeks. In Ontario, an employee with more than five years of service is also entitled to statutory severance pay of one week per completed year of service, to a maximum of 26 weeks. The precondition is that the employer must have at least 50 employees and a payroll of at least $2.5 million annually. Both these basic statutory standards are minimums. They are included in the amounts for reasonable notice that an employee may expect under our common law. These are the precedents coming from judicial decisions. Generally, under the common law, one wants to assert that all contracts for senior employees, like superintendents, should allow at least three months of notice or pay in lieu. For every completed year of service, one month of notice is often regarded as reasonable. These considerations form the bargaining backdrop. Other matters, like total years of service, re-employability, seniority, special skills and status of position, are relevant too. A younger, lower-paid, highly skilled assistant superintendent at a mid-sized club may be expected to find work faster than a very senior, highly-paid person at a top club. Employers may like contracts for a set term, like three or five years, because they avoid notice pay. The contract just ends. Usually, employees insist that decisions about renewal be made well in advance so the employee knows well ahead if he or
she needs to search for a new job. Be clear, it is acceptable to be given working notice that the contract will end. There are three kinds of termination to consider: just cause, no notice; no cause, proper notice; and termination at the end of a contract. If there is cause at common law, no notice is required. Some employers try to define cause by using examples in the contract. This creates problems for both sides because there are always grey areas. Some definition may make matters more confusing. It is better to leave questions of cause to be decided on the particular facts under review. There are many example cases to help. This more vague approach makes sense because there are very few cause terminations in this industry. Detailing the subject is unwarranted. Notice provisions for without cause terminations need to be defined in case the employer wants to end employment during the contract, rather than at the end. It is best to declare how much notice should be given. Also, employees should ask that the contract provide for benefits coverage throughout the notice period. In essence, without cause notice is like continuing to work while the notice runs. The employee should be treated the same. Timing of a termination can be significant. For the terminated employee, finding another good job is the goal. That is nearly impossible during the golf season. All clubs fill their openings by March so that preparation for the new season can go on efficiently. Terminations are often executed in November, when the clubs close. Certainly, the five month winter period is the best time to search for employment in this industry and for employers to have the most choices. Ideally, every contract should set its end date for some time in November. This approach protects the interests of both parties. Sometimes, a superintendent is