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EXHIBIT 4.14

THIS EMPLOYMENT AGREEMENT made as of this 1st day of January, 2002.

B E T W E E N:

          CAPITAL ENVIRONMENTAL RESOURCE INC., an Ontario corporation having its
          head office at 1005 Skyview Drive, Burlington, ON L7P 5B1
          ("CAPITAL")

- AND -

          JOHN D. MCGARVEY, an individual residing at 3230 Braumiller Road,
          Delaware, Oh 43015
          (the "EMPLOYEE" or "MR. MCGARVEY")

     WHEREAS, the Corporation desires to retain Mr. McGarvey as an employee;

     AND WHEREAS, Mr. McGarvey is desirous of being so retained;

     NOW THEREFORE IN CONSIDERATION of the Employee's employment by Capital, the
mutual provisions contained herein, the compensation to be paid the Employee
either in the form of salary, other compensation or increases therein and for
good and valuable consideration more particularly set out herein, the parties
agree with each other as follows:

1.   EMPLOYMENT

     A.   Capital hereby employs the Employee and the Employee hereby accepts
          employment upon the terms and conditions of this Agreement. The
          Employee shall have the titles of Executive Vice President and Chief
          Operating Officer for Eastern Canada and shall report to the Chief
          Executive Officer of Capital or his designee and shall perform such
          duties, assume such responsibilities and devote such time, attention
          and energy to the business of Capital and corporations affiliated with
          Capital (the "Affiliated Corporations") as Capital shall reasonably
          require.

2.   COMPENSATION

     For all services rendered by the Employee under this Agreement, Capital
     agrees to compensate the Employee during the term hereof, as follows:

     A.   BASE SALARY. Employee's base salary shall be $60,000 per annum payable
          on a periodic basis consistent with Capital's payroll procedures for
          executive employees. The Employee's base salary shall be reviewed at
          least annually and shall be increased as agreed by Capital and the
          Employee from time to time.

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     B.   OTHER COMPENSATION. The Employee shall be entitled to receive the
          following additional compensation:

               i.   BONUS. For each of 2002 and 2003, Employee may receive an
                    annual performance bonus in an amount to be determined at
                    the discretion of the Chief Executive Officer.

              ii.   BENEFITS. If eligible, Employee and his dependants shall be
                    covered under Capital's executive benefit plan inclusive of
                    the matching pension contribution to a maximum of five
                    percent (5%) of base salary and such other benefits as may
                    be authorized by the Board of Directors or Compensation
                    Committee from time to time.

             iii.   VACATION. Employee shall be granted four (4) weeks vacation
                    in each fiscal year, to be taken at such times as mutually
                    agreed between the Employee and Capital. Vacation may only
                    be taken within the year of entitlement and may not be
                    accumulated form year to year unless otherwise mutually
                    agreed.

              iv.   CAR.

                    (1)  Capital shall provide the Employee with a leased
                         vehicle (or equivalent car allowance) commensurate with
                         his position;

                    (2)  Capital shall be responsible for all costs incurred in
                         the operation of such vehicle including fuel,
                         maintenance, and insurance. Capital will compensate the
                         Employee for any deemed taxable benefits for his
                         personal use of such vehicle including taxable benefits
                         relating to operating costs; and

                    (3)  Capital shall provide at its cost a transponder for the
                         Employee to use while commuting from and to his home to
                         and from Capital's offices.

              v.    STOCK OPTIONS. Effective upon the date of this Agreement and
                    with a grant date of November 19, 2001, the Employee shall
                    be granted 250,000 options to purchase stock in the capital
                    of Capital, which shall vest upon the second anniversary of
                    the grant date (the "Vesting Date"). The exercise price for
                    each optioned share shall be the price per share as listed
                    on Nasdaq at the close of business on November 18, 2001.

              vi.   MOBILE TELEPHONE. Capital shall provide the Employee with a
                    mobile telephone and pay all reasonable charges incurred by
                    the Employee in connection with the use of such telephone or
                    reimburse Employee for same.

     C.   EXPENSES. Employee shall be reimbursed for all expenses reasonably and
          actually incurred in the performance of his duties, subject to
          submission of appropriate

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          documentation in accordance with Capital's expense reimbursement
          policy in effect from time to time.

3.   TERM, TERMINATION

     A.   The Employee shall be employed for a term of two (2) years ending
          December 31, 2003 (the "TERM").

     B.   Employee's employment hereunder shall terminate upon Employee's death.

     C.   The Company may terminate Employee's employment hereunder upon
          Employee's becoming "Totally Disabled". For purposes of this
          Agreement, Employee shall be "Totally Disabled" if Employee is
          physically or mentally incapacitated so as to render Employee
          incapable of performing the usual and customary duties under this
          Agreement. Employee's receipt of disability benefits under the
          Company's long-term disability plan or receipt of other disability
          benefits shall be deemed conclusive evidence of being Totally Disabled
          for the purposes of this Agreement; provided, however, that in the
          absence of Employee's receipt of such long-term disability benefits or
          other disability benefits, the Company may, in its reasonable
          discretion (but based upon appropriate medical evidence), determine
          that Employee is Totally Disabled.

     D.   The Employee may be terminated at any time for Cause without notice or
          compensation in lieu thereof. For purposes of this Agreement, the term
          "Cause" shall mean any of the following: (A) conviction of a crime
          (including conviction on a guilty plea) involving an indictable
          offence or, in the good faith judgment of the Company, fraud,
          dishonesty, or moral turpitude; (B) deliberate and continual refusal
          to perform employment duties reasonably requested by the Company or an
          affiliate after five (5) days' written notice by certified mail of
          such failure to perform, specifying that the failure constitutes cause
          (other than as a result of vacation, sickness, illness or injury); (C)
          fraud or embezzlement or material conflict of interest, determined in
          accordance with the Company's normal, internal investigative
          procedures consistently applied in comparable circumstances; (D) gross
          misconduct or gross negligence in connection with the business of the
          Company or an affiliate which has substantial effect on the Company or
          the affiliate; or (E) breach of any of the covenants set forth in
          Section 4 hereof.

     E.   Any determination of Cause under this Agreement shall be made by the
          Company after giving Employee a reasonable opportunity to be heard.

     F.   Employee may terminate employment hereunder at any time after
          providing thirty (30) days' written notice to the Company

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     G.   On termination, without Cause, Employee shall receive:

               i.   by way of salary continuance of the Employee's base salary
                    for the greater of the remaining Term at the time of
                    termination of this Agreement or six (6) months (the
                    "SEVERANCE PERIOD") Such severance shall be paid over the
                    Severance Period in accordance with Capital's payroll
                    procedures for executive employees;

              ii.   entitlement to the options granted under Section 2.B.v
                    hereof vesting according to the preceding schedule
                    regardless of whether Employee's employment shall terminate
                    prior to the vesting of such options and shall remain
                    exercisable for the full Term of the Option, as such terms
                    are defined in the Employee Option Agreement between Capital
                    and the Employee of even date; and

             iii.   his Annual Bonus from previous year (pro-rated).

     H.   For greater certainty should the agreement not be renewed for a
          further term, Employee shall receive (6) six months severance paid in
          accordance with the above.

     I.   In the event that Employee's employment is terminated by reason of
          Employee's death, the Company shall pay the following amounts to
          Employee's beneficiary or estate:

               i.   Any accrued but unpaid Base Salary for services rendered to
                    the date of death, any accrued but unpaid expenses required
                    to be reimbursed under this Agreement, any vacation accrued
                    to the date of death, and a prorated annual incentive bonus.

              ii.   Any benefits to which Employee may be entitled pursuant to
                    the plans, policies and arrangements referred to in Section
                    2.B.ii hereof as determined and paid in accordance with the
                    terms of such plans, policies and arrangements.

     J.   In the event that Employee's employment is terminated by reason of
          Employee being Totally Disabled as determined in accordance with
          Section 3.C, the Company shall pay the following amounts to Employee:

               i.   Any accrued but unpaid Base Salary for services rendered to
                    the date of termination, any accrued but unpaid expenses
                    required to be reimbursed under this Agreement, any vacation
                    accrued to the date of termination, and a prorated annual
                    incentive bonus.

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              ii.   Any benefits to which Employee may be entitled pursuant to
                    the plans, policies and arrangements referred to in Section
                    2.B.ii hereof shall be determined and paid in accordance
                    with the terms of such plans, policies and arrangements.

             iii.   The Base Salary (at the rate in effect as of the date of
                    Employee's termination) which would have been payable to
                    Employee if Employee had continued in active employment
                    until the later of: (A) the period ending on the last day of
                    the Term; or (B) the end of the six (6) month period
                    beginning on the date of Employee's termination. Payment
                    shall be made at the same time and in the same manner as
                    such compensation would have been paid if Employee had
                    remained in active employment until the end of such period.
                    The Employee shall also be eligible for a bonus or incentive
                    compensation payment to the extent bonuses are paid to
                    similarly situated employees, pro-rated for the year in
                    which the Employee is terminated, and paid when similarly
                    situated employees are paid.

              iv.   The Company completely at its expense will continue for
                    Employee and Employee's spouse and dependents, group health
                    plans, programs or arrangements, in which Employee was
                    entitled to participate at any time during the twelve-month
                    period prior to the date of termination, until the earlier
                    of: (A) last day of period during which Employee receives
                    payment in accordance with clause iii above; (B) Employee's
                    death (provided that benefits payable to Employee's
                    beneficiaries shall not terminate upon Employee's death); or
                    (C) with respect to any particular plan, program or
                    arrangement, the date Employee becomes covered by a
                    comparable benefit provided by a subsequent employer.

     K.   Upon the effective date of termination or resignation, the Employee
          shall promptly deliver and return to Capital all the property,
          including, but not limited to, credit cards, customer lists, financial
          data, letters, notes, notebooks, reports, or copies of any of the
          above, any Confidential Information, as defined in Section 4.A.i.

4.   NON-COMPETITION AND NON-SOLICITATION COVENANTS

     A.   DEFINITIONS.

               i.   "Confidential Information" includes information whether or
                    not developed by the Employee and includes, but is not
                    limited to:

                    (1)  names and identities of former, existing, and
                         prospective customers/clients of Capital not well known
                         to the trade; all contacts at all such
                         customers/clients whether or not such customers/clients
                         are well known to the trade; Capital's customer lists;
                         contents of Capital's proposals for sales, maintenance,
                         service, license, and other

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                         contracts; contents of all such contracts with all
                         former, existing and prospective customers/clients of
                         Capital; Capital's costing and estimation procedures
                         and formulae regarding proposals and other uses;
                         information regarding Capital's sales, profit and loss,
                         profit margin, production costs, overhead, and other
                         bookkeeping and accounting information; all information
                         regarding Capital's business development and marketing;
                         names and identities of Capital's vendors and suppliers
                         not well know to the trade; all contacts at all such
                         vendors and suppliers whether or not such vendors and
                         suppliers are well know to the trade; costs and
                         contents of proposals and actual contracts between
                         Capital and all such vendors and suppliers;

                    (2)  confidential information revealed to Capital by third
                         parties and which Capital is obligated to keep
                         confidential; and,

                    (3)  any other information that may be considered by Capital
                         as Capital's confidential information under applicable
                         laws.

              ii.   "Business" means the business that Capital is involved in
                    being the operation of collection, transportation, storage,
                    processing, recycling, reuse, handling and disposition of
                    solid and liquid, non-hazardous waste materials.

             iii.   "Severance Period" has the meaning ascribed thereto in
                    Section 3.G of the Employment Agreement.

     B.   CONFIDENTIALITY AND NON-DISCLOSURE.

               i.   Employee acknowledges that during Employee's employment,
                    Employee has had and/or will have access to and has become
                    and/or will or may become aware of Confidential Information.
                    Employee agrees to hold in confidence all Confidential
                    Information disclosed to Employee or developed by Employee
                    in connection with Employee's employment, except:

                    (1)  information which, at the time of disclosure, is in the
                         public domain; or

                    (2)  information which Employee can show was in Employee's
                         possession prior to entering into this Agreement and
                         which was not acquired, directly or indirectly, from
                         Capital.

              ii.   Employee will not, without the written permission of
                    Capital, use or disclose the Confidential Information which
                    Employee is obligated under this Agreement to maintain in
                    confidence for any reason other than to enable Employee to
                    properly and completely perform Employee's employment.

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             iii.   For purposes of this provision, Confidential Information
                    shall not include information already in the public domain
                    other than as a result of a breach of this Agreement by the
                    Employee. If disclosure is required pursuant to an order of
                    a court or other tribunal having jurisdiction and the
                    Employee, having consulted with and received an opinion of
                    his counsel, is compelled to release such information, the
                    Employee shall not be in breach of this provision in
                    complying with such order. In such circumstances, the
                    Employee agrees to limit such disclosure to that information
                    specifically required by the court or other tribunal having
                    jurisdiction and agrees prior to such disclosure to provide
                    the Corporation with notice thereof immediately following
                    receipt by the Employee of such order.

              iv.   Employee will not reproduce or make copies of the
                    Confidential Information or Employee's output, except as
                    required in the performance of Employee's employment. Upon
                    termination of Employee's employment for any reason
                    whatsoever, Employee will promptly deliver to Capital all
                    research, correspondence, data, formulae, records, drawings,
                    blueprints, manuals, letters, notes, notebooks, reports,
                    flow-charts, programs, proposals, documents (collectively,
                    "Documents") concerning Capital's customers/clients,
                    Documents concerning products, and all other Documents,
                    writings, and materials used by Employee or in the
                    possession or control of Employee which were used by
                    Employee during Employee's employment with Capital. Employee
                    understands that all such Documents, whether developed by
                    Employee or others, are and will remain the property of
                    Capital.

               v.   Except as may be required by Employee's employment, Employee
                    will not, during or at any time subsequent to Employee's
                    employment, unless Capital has given prior written consent,
                    disclose or use the Confidential Information or engage in or
                    refrain from any action, where such action or inaction may
                    result (1) in the unauthorized disclosure of any or all such
                    Confidential Information to any person or entity, or (2) in
                    the infringement of any or all such rights in the
                    Confidential Information.

              vi.   Employee will immediately notify Capital of any information
                    which comes to Employee's attention which does or might
                    indicate that there has been any loss of confidentiality of
                    such Confidential Information or breach of such rights in
                    the Confidential Information.

             vii.   Employee agrees that during Employee's employment with
                    Capital, Employee will not breach any obligation of
                    confidentiality that Employee may have to others.

            viii.   Employee represents that Employee's performance of all the
                    terms of this Agreement does not and will not breach any
                    agreement to keep in confidence

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                    proprietary information acquired by Employee in confidence
                    or in trust prior to employment by Capital. Employee
                    warrants that Employee has entered into no agreement, either
                    written or oral, which conflicts with this Agreement, and
                    moreover, that Employee will not enter into any such
                    Agreement.

     C.   FORMER EMPLOYER CONFIDENTIAL INFORMATION.

          Employee's understands that as part of the consideration for Capital's
          offer of employment and Employee's continued employment hereunder,
          that Employee has represented that Employee has not brought and will
          not bring and Employee has not brought and will not bring into Capital
          or use in the performance of Employee's responsibilities at Capital
          any equipment, supplies, trade secrets, confidential information or
          otherwise of any former employer which are not generally available to
          the public, unless Employee has first obtained written authorization
          for its possession and use.

     D.   NON-COMPETITION AND NON-SOLICITATION.

               i.   Employee will not, during Employee's employment and after
                    the termination of Employee's employment for any reason
                    whatsoever, directly or indirectly:

                    (1)  solicit the trade or patronage of any of the
                         customers/clients or prospective customer/clients of
                         Capital, with respect to any of the services, products,
                         Confidential Information, or other matters of Capital;
                         and,

                    (2)  Employee will not, during Employee's employment and
                         within a 75 km radius of any location where Capital or
                         any of its affiliates carries on the Business, where
                         the Employee has assumed responsibilities during the
                         course of the last year of his employment: (i) in the
                         event that the Employee's employment is terminated
                         (other than for just cause by Capital), for a period
                         equivalent to the Severance Period; and (ii) in the
                         event that the Employee resigns his employment or is
                         terminated for just cause, for a period of one (1) year
                         from the date of such resignation/termination (the
                         "TERMINATION PERIOD"), directly or indirectly:

              ii.   solicit the trade or patronage of any of the
                    customers/clients or prospective customer/clients of
                    Capital, with respect to any of the services, products,
                    Confidential Information, or other matters of Capital; and,

             iii.   found, work for, consult for, or assist in any way, whether
                    in a paid or unpaid capacity, any individual, partnership,
                    company, employer, business, research facility, or other
                    entity which competes with the Business of Capital.

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              iv.   The restrictions set out in Section 4.D will apply during
                    the Employee's employment and for either the Severance
                    Period or the Termination Period, whichever is applicable.

               v.   Employee agrees that during Employee's employment and for
                    either the Severance Period or the Termination Period,
                    whichever is applicable, Employee will not solicit or in any
                    manner encourage any employee of Capital to leave Capital's
                    employ.

     E.   INJUNCTIVE RELIEF AND PROOF.

               i.   Employee acknowledges and agrees that Capital has a material
                    interest in preserving the relationship it has developed
                    with its clients/customers against impairment by competitive
                    activities of a former employee and in protecting the
                    Confidential Information from use and dissemination.
                    Accordingly, Employee agrees that the restrictions,
                    agreements, representations, and warranties, contained in
                    this Agreement are of the essence to this Agreement and
                    constitute a material inducement to Capital to employ
                    Employee, and that Capital would not employ Employee absent
                    such an inducement. Furthermore, the existence of any claim
                    or cause of action by Employee against Capital whether
                    predicated on this Agreement or otherwise, will not
                    constitute a defence to the enforcement by Capital of the
                    restrictions, agreements, representations, and warranties
                    contained in this Agreement, provided, however, that if any
                    provision will be held to be illegal, invalid or
                    unenforceable in any jurisdiction, the decision will not
                    affect any other agreement or provision of this Agreement or
                    the application or any other agreement or provision.

              ii.   Employee acknowledges and agrees that a breach of any
                    agreement, restriction, representation or warranty contained
                    in this Agreement would cause Capital irreparable harm not
                    compensable by damages alone. As such Employee acknowledges
                    and agrees that if Employee breaches any of the agreements
                    contained in this Agreement, Capital has the right to
                    temporary and permanent injunctive relief in addition to any
                    other appropriate relief granted by a court of competent
                    jurisdiction to restrain any breach of such agreements by
                    Employee, without the burden of proving actual damage to
                    Capital by reason of any such breach and without having to
                    post security in respect of an application for such relief.
                    Employee acknowledges and agrees that restricting the
                    remedies of Capital to an action for damages would not be
                    sufficient to protect Capital in the circumstances of any
                    such breach. In the event of any such breach, Employee
                    agrees that Capital will be entitled to recover its legal
                    costs of any application to a court of competent
                    jurisdiction to remedy any such breach.

5.   SEVERABLE PROVISIONS

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     In case of any one (1) or more of the provisions or parts thereof contained
     in this Agreement shall, for any reason, be held to be invalid, illegal or
     unenforceable in any respect (i) such invalidity, illegality or
     unenforceability shall not affect any other provisions or parts thereof of
     this Agreement, and (ii) this Agreement shall be construed as if such
     invalid, illegal or unenforceable provision had never been contained
     herein. Failure to insist upon strict compliance with any provision of this
     Agreement shall not be deemed a waiver of such provisions or any other
     provision of this Agreement.

6.   ENTIRE AGREEMENT

     The Employee acknowledges receipt of a copy of this Agreement (together
     with any attachments hereto), which has been executed in duplicate and
     agrees that it is the entire Agreement with Capital and supersedes any and
     all previous oral or written agreements or representations respecting or
     relating in any way to the Employee's employment including but not limited
     to its terms and conditions. It is further agreed that this Agreement can
     only be amended by an agreement in writing signed by both the Employee and
     an officer of Capital provided that this shall not preclude Capital or
     Affiliated Corporations from granting an increase in salary or an
     enhancement of benefits. For greater certainty, any oral or written
     representations, understanding or agreements with Capital or Affiliated
     Corporations, any of their officers or representatives in any way relating
     to the Employee's employment including but not limited to its terms and
     conditions are hereby declared to be void, of no effect and are superseded
     by the provisions of this Agreement. The Employee further acknowledges and
     agrees that neither Capital nor Affiliated Corporations is in any way
     responsible or liable for any such oral or written representations,
     understandings or agreements.

7.   GOVERNING LAW

     This Agreement shall be construed in accordance with and governed for all
     purposes by the laws of the Province of Ontario subject to the mandatory
     application of the statutes of any province other than Ontario where the
     Employee is employed in such other province and the laws of Canada
     applicable therein.

8.   ASSIGNMENT

     The Employee acknowledges that Capital or any of its Affiliated
     Corporations may assign this Agreement amongst themselves, to any
     corporation with which they are merged or amalgamated, or to any third
     party acquiring all or part of any of the businesses of Capital or any of
     its Affiliated Corporations.

9.   OPPORTUNITY TO SEEK INDEPENDENT ADVICE

     The Employee recognizes that this Agreement is an important document that
     affects his legal rights. For this reason, Employee may wish to seek
     independent legal advice before accepting the terms stated herein. The
     Employee acknowledges that he has had an opportunity to seek such
     independent legal advice. The Employee acknowledges that he has

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     read and understands the provisions contained herein and acknowledges
     receipt of a copy of this Agreement.

                             SIGNATORY PAGE FOLLOWS

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IN WITNESS WHEREOF the parties have executed this Agreement as of the date set
forth above.

CAPITAL ENVIRONMENTAL RESOURCE INC.


By:    /s/ Thomas E. Durkin, III
     --------------------------------
       Thomas E. Durkin, III
       Secretary and General Counsel


/s/ John D. McGarvey
-------------------------------------
JOHN D. MCGARVEY

-------------------------------------
WITNESS