Question 1

Is an employment offer letter legally binding in Canada?

Accepted Answer

Yes, once signed by both parties, an employment offer letter forms a binding contract under Canadian common law. It establishes the key terms of the employment relationship including compensation, duties, and termination provisions. Courts have consistently enforced signed offer letters as employment contracts.

Question 2

Can an employer include a non-compete clause in a Canadian offer letter?

Accepted Answer

In Ontario, non-compete clauses are banned for most employees under the Working for Workers Act, 2021 (amending section 67.2 of the ESA, 2000), with exceptions only for C-suite executives and business sale agreements. In other provinces, non-competes may be enforceable if reasonable in scope, duration, and geography. Non-solicitation clauses remain a viable alternative across all provinces.

Question 3

What are the minimum vacation entitlements by province in Canada?

Accepted Answer

Most Canadian provinces (Ontario, Alberta, BC, Manitoba) require a minimum of 2 weeks of vacation (4% vacation pay) after one year of service, increasing to 3 weeks (6%) after 5 years. Saskatchewan provides 3 weeks from the first year. Quebec offers 2 weeks for under 3 years and 3 weeks (6%) after 3 years of service. Employers may always offer more than the statutory minimum.

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