Written Employment Contracts are a vital component of the employer-employee relationship, even though they are not required under Canadian law. Despite not being required, using a written Employment Contract is the best way to create a record of the agreed-upon employment terms and protect the interests of both parties.
Simply put, verbal agreements do not suffice. Relying on a purely verbal Employment Contract should be avoided because it’s difficult—if not impossible—to prove its exact terms. If a dispute arises and an employer and employee don’t have a contract, they could recall the details of their arrangement differently and have trouble resolving the conflict.
Instead, written Employment Contracts provide a record of the job terms so that either party can use it as legal protection in case of a dispute or lawsuit.