Let’s be honest: terminating an employee can be stressful. Even with a solid plan, many employers start second-guessing themselves — worried about legal blowback, they consider overpaying “just to be safe.” We often hear, “Should we throw in a few extra weeks? Just in case?”
Our answer? Not if your contract is doing its job.
Because that’s the whole point of a well-drafted employment agreement — to protect your business when things get tough.
A strong employment agreement isn’t just HR paperwork — it’s your risk management tool. Properly drafted, it clearly sets out each party’s rights and obligations and can limit an employee’s termination entitlements to the minimum required under the Employment Standards Act, 2000 (“ESA”). That means no guessing, no guilt — just clarity.
Of course, that only works if the agreement is up to date, compliant with the latest case law, and professionally drafted.
When employers start voluntarily “topping up” ESA payments, they don’t just increase costs, they risk sending mixed messages. A few extra weeks of pay here, an extra benefit extension there, and suddenly you’ve:
- Undermined the contract’s authority;
- Set a precedent across your workforce;
- Invited claims of implied terms or changes; and
- Made it harder to rely on the agreement in future terminations.
Your good intentions shouldn’t undo your good planning (or ours).
If your employment contracts were built by someone who knows what they’re doing (hi!), and you’ve stuck with the plan, you’re better protected than you think. Don’t let fear override strategy.
Not sure your contract’s still airtight? We can help with that too — from enforceability reviews to updating templates that reflect the latest legal standards.
Remember, trust the process (and the paperwork!).
Robin K. Mann, Associate Lawyer