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Fixed Term Agreement for Canada

Fixed Term Agreement Template for Canada

A Fixed Term Agreement is a legally binding employment contract used in Canadian jurisdictions to establish a temporary employment relationship with a defined start and end date. This document outlines the terms and conditions of employment, including compensation, benefits, duties, and responsibilities, while ensuring compliance with both federal and provincial employment standards. It provides clarity on the temporary nature of the position and includes provisions for early termination, confidentiality, and return of company property. The agreement is structured to protect both employer and employee interests while maintaining alignment with Canadian employment law requirements.

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What is a Fixed Term Agreement?

The Fixed Term Agreement is specifically designed for temporary employment arrangements in Canada where there is a clear business need for time-limited employment. This document is commonly used for project-based work, seasonal employment, maternity leave coverage, or specific funding-dependent positions. It includes essential terms required by Canadian employment law, such as compensation, benefits, and termination provisions, while clearly stating the temporary nature of the employment relationship. The agreement must comply with both federal and provincial employment standards, including minimum wage requirements, vacation pay, and statutory holidays. It's crucial that the document clearly specifies the employment term's duration and any conditions for early termination or potential renewal to avoid creating an indefinite employment relationship by default.

What sections should be included in a Fixed Term Agreement?

1. Parties: Identification of the employer and employee with full legal names and addresses

2. Background: Context of the agreement and brief description of the purpose of the fixed-term employment

3. Definitions: Key terms used throughout the agreement

4. Term of Employment: Specific start and end dates of the fixed-term employment period

5. Position and Duties: Job title, role description, and key responsibilities

6. Compensation: Salary, payment schedule, and any guaranteed bonuses

7. Hours of Work: Working hours, schedule, and overtime arrangements

8. Vacation and Leave: Vacation entitlement, statutory holidays, and other leave provisions

9. Benefits: Health benefits, insurance, and other employee benefits

10. Termination: Conditions for early termination and notice requirements

11. Confidentiality: Protection of company confidential information

12. Return of Property: Requirements for returning company property upon termination

13. Governing Law: Specification of Canadian law and relevant province

14. Entire Agreement: Integration clause confirming the agreement represents the complete understanding between parties

15. Execution: Signature blocks and date of agreement

What sections are optional to include in a Fixed Term Agreement?

1. Probationary Period: Include if there will be an initial probationary period within the fixed term

2. Remote Work: Include if the role involves any remote working arrangements

3. Intellectual Property: Include if the role involves creation of IP or creative work

4. Non-Competition: Include if requiring post-employment restrictions (note: carefully consider enforceability under Canadian law)

5. Non-Solicitation: Include if protecting against solicitation of employees or customers

6. Travel Requirements: Include if the role requires regular travel

7. Performance Reviews: Include if formal review process will be conducted during the term

8. Renewal Terms: Include if there's possibility of renewal or extension of the fixed term

9. Commission Structure: Include for sales roles or positions with commission-based compensation

10. Training Requirements: Include if specific training or certification is required during the term

What schedules should be included in a Fixed Term Agreement?

1. Schedule A - Duties and Responsibilities: Detailed list of job duties and responsibilities

2. Schedule B - Compensation Details: Detailed breakdown of salary, benefits, and any variable compensation

3. Schedule C - Company Policies: Key company policies that form part of the agreement

4. Schedule D - Benefit Plans: Details of applicable benefit plans and coverage

5. Schedule E - Equipment List: List of company equipment provided to employee

6. Appendix 1 - Confidentiality Agreement: Detailed confidentiality terms and requirements

7. Appendix 2 - Code of Conduct: Company's code of conduct and expected behavior standards

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Ƶ

Document Type

Service Agreement

Cost

Free to use
Relevant legal definitions






























Clauses






























Relevant Industries

Technology

Construction

Education

Healthcare

Retail

Manufacturing

Professional Services

Entertainment

Agriculture

Hospitality

Non-Profit

Financial Services

Media and Communications

Research and Development

Energy

Relevant Teams

Human Resources

Legal

Operations

Finance

Project Management Office

Research and Development

Sales

Marketing

Administration

Information Technology

Customer Service

Production

Quality Assurance

Relevant Roles

Project Manager

Seasonal Worker

Contract Teacher

Temporary Executive

Research Assistant

Interim Director

Contract Developer

Maternity Leave Coverage

Seasonal Sales Representative

Contract Consultant

Grant-Funded Researcher

Temporary Administrator

Project Coordinator

Contract Specialist

Interim Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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