The importance of an employment contract

A well drafted employment contract can reduce uncertainty when the employment relationship is terminated
By Sundeep Gokhale
|Canadian Payroll Reporter|Last Updated: 07/06/2011

The date of an employee’s dismissal may end the employment relationship.  However, it rarely marks the end of  a payroll professional’s obligations. Virtually every employee — even one dismissed with cause — is entitled to some sort of payment post termination.  A well drafted and enforceable employment contract can reduce uncertainty and save an employer untold dollars.  Word of note: The specifics of each obligation will vary depending upon the jurisdiction in which the employer operates.  As such, it is important an employer operating in more than one jurisdiction know and meet the statutory obligations in each.

Obligations upon termination of employment

Following termination, a payroll  professional always has the following obligations to a dismissed employee, even where cause is alleged: