Avoiding the Employment Contract Part 2

As reviewed in most recent post, an employment contract is typically intended to “contract-out” of the employee’s wrongful dismissal rights. There are other issues to be concerned with, apart from the need for the contract to be compliant with the Employment Standards Act. Value Given Consideration is the legal term given to an important requirement needed to create a binding contract. In order to create a valid agreement there must be something of value exchanged by each party. If your uncle, for example, said he would give you his car this summer, there is no legal basis for a claim if there was  a default (i.e. if he didn’t give you the car after all, for instance). If, however, you each agreed that a specified sum of money would be paid, then there is an enforceable contract. In the employment context, this issue usually emerges in a context where the employer unilaterally imposes a new contract term. For example, if a person was hired to start…

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