Ontario · Employment

Ontario Employment Contract Template

An Ontario employment contract sets out the terms of employment — duties, pay, hours, and how the relationship can end — under the Employment Standards Act, 2000 (ESA). A well-drafted contract protects both sides: the employer gets enforceable terms, and the employee gets clarity. This guide covers Ontario's must-know rules and how to build a compliant contract in minutes.

Province-specific clausesEnglish + FrenchWord & PDF

What Ontario's ESA requires

The ESA sets minimum standards no contract can go below:

Minimum wage, overtime pay after 44 hours per week, and public holiday pay.
Minimum vacation: two weeks per year (three after five years with the same employer).
Termination notice or pay in lieu: at least one week per year of service, up to eight weeks.
Severance pay for employees with five-plus years at employers with $2.5M+ Ontario payroll.
Protected leaves: pregnancy, parental, sick, family responsibility, and more.

Termination clauses: the litigation hotspot

Ontario courts routinely strike down termination clauses that even potentially violate the ESA — including clauses that are merely ambiguous. A void clause means the employee gets common-law reasonable notice instead, which can be far more expensive than the ESA minimum. This is the single most litigated part of Ontario employment contracts, and the reason templates copied from other provinces are dangerous: what's enforceable in Alberta may be void in Ontario.

A safe Ontario termination clause does three things: provides at least ESA minimums, never contracts out of any ESA entitlement, and includes a failsafe line preserving ESA rights if any part fails.

Non-competes are banned in Ontario

Since December 2021, Ontario prohibits non-compete clauses in employment contracts, with narrow exceptions for executives and business sales. Including one anyway doesn't just make that clause void — it signals the contract was drafted without Ontario law in mind, which colours how a court reads everything else. Non-solicitation clauses (not poaching clients or staff) remain generally enforceable if reasonable.

Offer letter vs. full contract

An offer letter is a short summary of key terms — role, start date, compensation — used to secure acceptance quickly. A full employment contract is the complete legal document covering duties, IP assignment, confidentiality, termination, and restrictive covenants. Many Ontario employers use both: the offer letter to move fast, the full contract signed before or on the first day of work. Terms signed after work begins may need fresh consideration to be enforceable.

What your contract should include

A complete Ontario employment contract covers:

Job title, duties, work location, and reporting structure.
Compensation: salary or hourly rate, pay schedule, overtime, bonuses, and benefits.
Hours of work and any overtime expectations.
Probation period terms (up to 3 months under the ESA).
An ESA-compliant termination clause with a failsafe.
Confidentiality and intellectual property assignment.
Non-solicitation terms (not non-compete).

Create yours in 3 steps

Choose offer letter or full contract

Pick the document type; Ontario rules like the non-compete ban apply automatically.

Enter the employment terms

Role, pay, hours, and termination terms — guided steps with ESA-aware prompts.

Download Word or PDF

Review, add signatures, and download when you're ready.

Frequently asked questions

Are non-compete clauses enforceable in Ontario?+

No — they've been banned since December 2021, with narrow exceptions for executives and business sales. Non-solicitation clauses are still generally enforceable.

What makes a termination clause void in Ontario?+

Any clause that could violate the ESA — even potentially or ambiguously — is void. Courts also void clauses that attempt to contract out of ESA entitlements like severance or benefits continuation.

How much termination notice does the ESA require?+

One week per year of service, up to a maximum of eight weeks, plus severance pay in qualifying cases (5+ years' service, $2.5M+ payroll).

Can I use a US or Alberta template in Ontario?+

Risky. Ontario's termination-clause case law and the non-compete ban are unusually strict — foreign templates routinely produce void clauses here.

When should the contract be signed?+

Before or on the first day of work. Terms introduced after employment begins may be unenforceable without fresh consideration.

What's the ESA probation period?+

Employees with less than three months' service aren't entitled to ESA termination notice — but the contract should still state the probation terms clearly.

Build your Ontario employment contract

ESA-aware, with the non-compete ban built in. Offer letter or full contract.

Start my contract

Review your draft and download it in Word or PDF when you're ready.