Executive Employment Agreement Ontario
All employment contracts in Ontario must comply with the Employment Standards Act, which prohibits any agreement that does not meet the minimum statistics established by law. Finally, we have begun to see that arbitration provisions are more present in executive employment contracts than in non-executive employment contracts. We believe that this is happening because both parties want to keep it a secret and because arbitration costs much less than illegitimate litigation by the courts, where some complaints cost, as we have seen, a million dollars or more (combined by the costs of both parties). As a result, executive employment contracts include, over time, the following general conditions, which are not always included in a non-executive employment contract: whether a restrictive pact is appropriate and therefore applicable must be considered in the general context of employment. What is the nature of the industry? How were the terms of employment negotiated and agreed? Did the employee bring his own clients into the company? Has he developed and/or used his resources from company contacts? Are customers likely to leave with the employee? Is he in a position of trust? In the case of unqualified stock options, executives have the right or opportunity to acquire shares from the company at a specified price. This option is favourable if the company is able to perform well in the years to come. However, in the event that a company does poorly on the stock exchange, any opportunity for executives to sell their shares will be neutralized. Most of the disputes concerning executive employment contracts involve the payment of wages or bonuses or the raising of capital after the termination of the employment relationship, either by dismissal or resignation for “good reason”. In this regard, it is particularly important that the executive employment contract defines, for whatever reason, the payment of salary and bonuses as well as the ouster of equity after the termination of the executives` employment contract. In many cases, ultra-expensive lawsuits are opposed to the text or even the grammar of such clauses. It is therefore recommended that the executive and the employer go to a lawyer before accepting an employment contract.