Employers can be set up as a company (most common)

An employer's businesses can be set up as a corporation, partnership, society, association, or another other type of legally formed organization. This is the most common scenario.  

But an employer can be just a human running a business and chasing a dream, too

But businesses can be run just in someone's own name without being set up as a separate company. This is known as being a "sole proprietor". Sole proprietors (i.e., just a human running a business) make all the decisions and keep all the profits, but they are also responsible for any debts or problems the business has. This means their personal money and belongings could be used to pay off business debts. It's a popular choice because it's easy to start and doesn't have many rules to follow, but there are risks. 

Why do we ask?

We use your answer to adapt your agreement to how your business is set up.

Employment standards codes and regulations set the minimum rights the employee has, including vacation.

The rights in the codes across the provinces (and federally) are often quite lower than what the marketplace expects. So, it's a good idea to add some details to your Employment Contract if you plan to have more vacation than the minimum required amounts.

Many employment relationships start with a probation period, which is normally around 3 months. Up to 6 months is sometimes seen as well.  

During the probation period, the employer has the chance to see if the employee is suitable for the job. If not, the employer is free to end the employment without giving the employee the notice period that is usually needed when letting someone go.

Employment law says that an employee must give the employer advance notice when they decide to quit. The amount of time has to be reasonable, but it's generally not a lot of time - something like 2 to 4 weeks is usually normal. But it can be higher for executives, for example.

If you wish, you can include a minimum amount of time the employee has to give you when they quit. You may want to do this if the person is a key or very senior employee and it would leave you in a bind if they left suddenly.

Relocating an employee to another location (for example, to a different city, province, or even country) is a significant change to the employment relationship. If it isn't in your Employment Contract, the law could treat that sort of change the same as dismissing the employee from their job. That would mean you would have to provide notice or severance pay. If  relocating is possible, we'll include clauses that protect you and make it clear that a willingness to relocate is a condition of  employment.

Without an agreement saying the employer can temporarily layoff its workers when business is slow and recall them later when it picks up again, the employer would have to give notice of termination or pay the employee a severance amount if it wants to temporarily stop using the employees' services. If temporary layoffs are possible, we will include language that allows you to temporarily layoff workers when you reasonably expect to recall them shortly in the future.