Speaker 1: What you need to know about employment agreements, so we'll get through some of these talking points and we'll get through them. First one, why are they so important, employment agreements?

Speaker 2: I started off the show today by saying that we spend so much time at work and most of us spend more time at work than we do anything else. We probably spend more time at work than we spend time with our family or on vacation or doing our hobbies. So the employment agreement is the agreement, it's the document that governs what we can and cannot do at work, where we spend most of our time. That's why an employment agreement is so important. A lot of people don't appreciate the importance and we're going to give some examples as to why it's so important, but it's an extremely important document and not only does it govern your employment, which is a reason enough to care, an employment agreement could be with you for a very long time, even after employment comes to an end. So it's very, very important to pay attention and to be very, very picky about what you sign.

Speaker 1: So what's better, an old school handshake or a 55 page document? I know what you're probably thinking, but what's actually better?

Speaker 2: I have received, John, so many calls from people who have received a job offer, they received a one or two paragraph letter and they call me very concerned, very upset, saying I'm taking this new job on and they're giving me this one paragraph document, I need to add things to it, I want a more comprehensive, more extensive document. Well don't, don't worry about that, that's exactly what I tell these individuals. Don't worry about the one paragraph document. Worry about the 30 page document with a lot of legalese because I can promise you that in that document, that big document, there are going to be a lot of terms that are going to be unfavorable to you. For an employee, it's far better to start even on a handshake or on a very short document. All that means is that you have the full protection of the law. What a written agreement does is usually take away some of those protections that you have and either eliminates them or turns it around and gives it to the employer. So in that regard, if you're an employee, if I'm talking to you as an employee, you don't want to have an employment agreement. On the other hand, if I put on my employer hat on, I say you shouldn't hire someone without an employment agreement. Depending on your perspective, but either way, it's a very important document. Is it really less is more in that case? Less is more for the employee and more is more for the employer. So what should an employee, if they're signing an agreement, what should they be watching out for? What are some of the signs? Well John, most people that I know, probably people that you know, if you received a job offer, what are you going to look at? Salary, how much holiday time I get, if I get bonuses, that's probably it. That's probably it. My salary is fine. Bonus looks good. I got my four week vacation. I'm a happy guy. And that's fine. And I'm certainly not suggesting that you shouldn't look at that. But what I'm here to say is there's other terms, at least as important as those that you need to watch out for. Just one example may be a term in the agreement that limits your future severance. You may sign an agreement not realizing five years later when you were let go that that document from five years ago limits your severance. And now instead of getting 12 months pay, you're going to get six weeks pay. So that costs you tens of thousands of dollars. How about a non-competition obligation that says that you can't work in the industry if you lose your job? There could be terms also, John, that allow the company to change the terms of employment. So you may sign an agreement to be the marketing manager making $80,000 a year. But all of a sudden, the agreement actually says that we can change your job. We can change your pay. So the job that you've had is not actually the job that you're going to have. So that's why it's so important to look at other things other than just pay and to understand. And if you don't understand what you're signing, that's a problem. You should never, ever, ever sign something without understanding what it means. You can give me a call. I can interpret it to you in simple English and tell you whether you should be concerned.

Speaker 1: 1-855-821-5900 is the number Lior just mentioned. What you should know about employment agreements moving forward. Can you, do you have wiggle room? Can you negotiate all before you start or at least sign?

Speaker 2: Well, probably the first thing I am told by individuals when I say this is not good, that's not good, is what can I negotiate? The employer has the job. I want the job. So what power do I have? Well, the reality is, John, that you do have something the employer wants and that is yourself. If your employer has gone through an interview process and they've decided at the end of that long process that you're the right candidate, you're the better than the other candidates that they were looking at, well, then you have something, then you have some leverage. And you can use that leverage. Ask yourself this, John. Will your employer want to lose their perfect candidate if that candidate is concerned about job security? In most situations, the answer is no, they're not going to want to do that. So you can negotiate, you should negotiate, and in fact, you should tell your employer what your concerns are. I wouldn't go back with 25 things, a laundry list, but narrow it down to the two or three things you care about the most and approach your employer about those.

Speaker 1: Okay, so I've signed the agreement, now I'm ready to work. I didn't get any advice, so what?

Speaker 2: Yeah, and a lot of people think that just because they didn't get advice, now all of a sudden they can get out of it. If you sign it, you have to live with it. That's always my mantra. So even if you didn't have an opportunity to consult someone like myself about your employment agreement, you're going to be bound by its terms. That's why it's so important to understand what you're signing and not try to get out of it later. There are ways to get around and out of employment agreements, but I would rather not have a fire than try to put out the fire. So that's why I say be proactive. If you have a job offer, congratulations, that's wonderful. But give me a call. Let's understand what you're signing.

Speaker 3: Lost your job? Employment law myth number nine. I can just call the labor board instead of a lawyer. Fact, the labor board cannot help an employee get their full entitlements. Always go to employmentlawyer.ca and check with the employment lawyer first.