Employment Agreement

  • Suitable For:Canada (9 provinces + 3 territories)
  • Downloads:3,281
  • Last Updated:
  • Time to Complete:5 min.
  • Available formats:PDF and Word

This employment contract template provides an enforceable legal foundation for Canadian business preparing to make the first hire, replacing a verbal employment arrangement with written, or simply standardizing the hiring process within the organization.

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We needed an employment agreement template for a new team member and found this one very helpful. It was easy to customise with the employee's details, job responsibilities, compensation, and other employment terms. The document was professionally structured and saved us considerable time preparing an agreement from scratch.
— Michael, HR Manager

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Employment Agreement template for Canada: the first page of the document

What this template includes?

A property drafted employment agreement makes relations between the parties more predictable from day one. This template includes the following:

  • Details about the position, duties and reporting line;
  • Start date, probation period and duration of the employment (for example, permanent or fixed-term);
  • Working hours, overtime treatment and work location;
  • Available vacation and statutory holiday entitlement;
  • Termination provisions compliant with the applicable provincial Employment Standards Act;
  • Governing law and post-employment obligations, including non-solicitation and non-compete (especially for senior roles).

There is no mandatory rule to have a strong written employment contract in Canada, which basically allows parties to agree on the main details of their employment on the handshake. However, at the same time this is the most expensive mistakes Canadina employer can make. In fact, if there is no written agreement between the parties, the common-law provisions shall automatically apply. For example, it can mean that in case of a termination of a short-term employment the employer would need to pay out several months of pay at termination.

Who can you this template?

Customising this employment contract template Canada could be helpful for:

  • Small employers in Canada without an internal legal department;
  • Employers searching for an employment contract template Canada free or for a fraction of legal fees;
  • Self-employed individuals hiring for short-term period of employment;
  • Anyone searching for a lawyer-drafted and fully customisable employment contract template in line with Canadian laws, including Employment Standards Act 2000 (Ontario) and other Canadian provinces..

How the customisation works with FasterDraft?

To get a tailored employment agreement template for Canada, follow instructions given below:

  • Click the “Create Document” button.
  • Answer simple questions in the form.
  • Select a template’s format – PDF ro Word.
  • E-sign the document online, if you are an employer.
  • Make a payment. 

The document is ready for instant digital download immediately after the purchase. You can immediately send it to your future employee for further discussion and signature. 
Once the document is customised, print, and signed, either party must keep a signed copy of it for their internal record. A contract signed on the first day of work, or after, can be unenforceable for lack of fresh consideration, which is one of the most common reasons DIY contracts fail at the only moment they matter.

In which cases you should still see a lawyer?

This employment agreement contract template is the right tool for the vast majority of hires. However, there is a number of circumstances in which you must see a lawyer first:

  • Cross-border hires, secondments or hiring a foreign nationals;
  • Employment of minors (individuals below the age of 18);
  • Employment in Quebec (this document is not suitable for Quebec provincial employment laws);
  • Any industry with its own regulatory overlay, including healthcare, financial services, cannabis, cross-border fintech etc.

Frequently Asked Questions (FAQ)

1. Is this template legally binding in Canada?

Yes. The agreement is drafted to be enforceable under Canadian common law and the employment standards legislation of each covered province. For the contract to bind the employee, three practical things need to happen. The employee must receive the full document and have a reasonable opportunity to review it. The employee must sign before starting work, not on day one and not after. The employer must sign as well. If any of those three steps is skipped, enforceability of the key clauses — particularly termination — can be challenged and lost. A short signing checklist is included at the end of the template to make sure nothing is missed.

2. How is this different from a free template I can find online?

In two ways that matter. First, enforceability. Free templates — including most of what shows up in a quick employment contract template canada free search — are frequently US-drafted, use at-will concepts that have no legal effect in Canada, or carry termination clauses that fail the Waksdale test and are routinely struck down by Ontario courts, which then defaults the employer back to common-law notice. Second, scope. Free templates are usually bare-bones: a job title, a salary, a signature line. This document includes the clauses that actually protect an employer — confidentiality, IP assignment, non-solicitation, properly limited termination — plus the schedules you’ll grow into as the business expands. The cost of the template is small compared with the cost of a wrongful-dismissal payout built on an unenforceable clause.

3. Can I use this for both salaried and hourly employees?

Yes. The template supports salary, hourly, commission and mixed-compensation structures. For hourly employees you fill in the base rate and overtime treatment (overtime rules differ by province, and the guidance notes walk through the main ones). For salaried employees you set an annual figure and pay cycle. For commission or bonus-eligible employees there’s a separate schedule where you set the plan, the calculation, the timing of payment, and clawback provisions if any apply. You can also use the template for fixed-term employment, including seasonal roles, by selecting the fixed-term variant of the term clause. For independent contractor arrangements, a separate contractor template is available — you should not use an employment agreement for a contractor relationship, as misclassification carries its own set of risks.

4. Does this template cover remote and hybrid work?

Yes. Remote and hybrid provisions were updated most recently in 2026 to reflect the way most Canadian employers are now hiring. The template lets you specify the primary work location (home office, employer office, or hybrid), who pays for equipment and expenses, how workplace injuries that occur at home are handled for WSIB or WorkSafeBC purposes, expectations around availability during business hours, and the employer’s right to require occasional in-office attendance. If you’re hiring an employee who lives in a different province from your head office, the template also addresses which province’s employment standards apply (generally the one where the employee actually performs the work), which matters for notice, overtime calculation, statutory holidays and vacation entitlements.

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