You got the job offer. You are excited. The contract is sitting in front of you and your new employer wants it back by Friday. Everything in you wants to just sign it and move on.
Do not — until you read this.
Most people sign employment contracts without reading them properly. Some of those people spend years paying for that decision. Here is when you should slow down, push back, or walk away entirely.
When the Deadline Is Unreasonably Short
A legitimate employer gives you reasonable time to review an employment contract — typically several days to a week. If you are being pressured to sign same-day or within 24 hours, that is not normal. That is a tactic.
Pressure to sign quickly almost always means there is something in the contract the employer does not want you to examine too closely.
Ask for more time. A good employer will say yes. A problematic one will tell you everything you need to know by saying no.
The Timing Is Everything
Employers rarely say “we are firing you because you complained.” What they say instead is:
- “This is a restructuring.”
- “Your performance has not been meeting expectations.”
- “Your role is no longer required.”
When the Termination Clause Limits You to ESA Minimums Only
Buried in most employment contracts is a termination clause. If it says something like:
“In the event of termination without cause, the employee will receive notice as required by the Employment Standards Act”
— that clause is attempting to strip away your common law right to reasonable notice. Depending on your age, seniority, and length of service, that common law entitlement could be worth months — sometimes over a year — of additional compensation.
You are being asked to give up a significant legal right before your first day of work. At minimum, understand what you are giving up before you agree to it.
When Verbal Promises Are Not in the Contract
During recruitment your future employer promised you:
- A signing bonus
- Flexible work arrangements
- A performance review at six months
- A specific title or reporting structure
- A guaranteed commission structure
None of it is in the written contract.
Once you sign, those promises are almost certainly gone. The contract contains an “entire agreement” clause that makes the written document the only agreement between you. What was said in the interview legally disappears.
If it was promised — it must be written. Ask for it to be added before you sign.
When the Non-Compete Clause Is Still in There
Since October 2021, non-compete clauses are void and unenforceable for most Ontario employees. If your contract still contains one — prohibiting you from working for a competitor after you leave — that is a red flag about how current and carefully drafted this contract actually is.
It also means you may be signing a contract with other clauses that are equally outdated or unenforceable — and you would not know without a proper review.
When the Hours Clause Is Unlimited
Watch for language like:
“The employee agrees to work such hours as are reasonably required to fulfill the duties of the role.”
This is an attempt to opt you out of Ontario’s maximum hours protections and overtime entitlements. It signals an employer who expects unlimited availability — and has built that expectation into your contract before you even start.
When the Bonus Is "Entirely Discretionary"
A bonus described as fully at the employer’s discretion — with no formula, no target, and no criteria — can be withheld for any reason, including no reason. If a significant part of your expected compensation is bonus-based, a discretionary clause means it may never materialize regardless of your performance.
At minimum, push for:
- A defined target or formula
- Clear criteria for what triggers payment
- Language confirming the bonus is included in severance calculations
When the Intellectual Property Clause Is Too Broad
Some IP clauses assign ownership of everything you create — during or outside of work hours — to the employer. If you have side projects, freelance clients, or creative work outside your employment, a broad IP clause could mean your employer owns it.
Read this clause carefully. If it extends beyond work-related creations during working hours — push back.
When the Repayment Clause Has No Cap or Clear Trigger
Signing bonuses and relocation allowances often come with repayment clauses — requiring you to pay the money back if you leave within a defined period. These are not automatically unreasonable.
But watch for:
- No cap on the repayment amount
- Vague triggering conditions
- Repayment required even if the employer terminates you
If you are fired six months in and owe your employer $20,000 — that is a problem you agreed to on day one.
When You Are Asked to Sign Mid-Employment Without Anything in Return
Your employer presents you with a new contract — or asks you to sign additional restrictive clauses — after you have already been working there. No raise. No promotion. No additional benefit. Just a signature request.
In Ontario, a contract signed mid-employment without fresh consideration — something new offered in exchange — may not be legally binding. But signing it creates confusion about whether you agreed. Do not sign mid-employment contract changes without understanding what you are being asked to give up and what you are receiving in return.
When Something Simply Feels Off
This is not a legal test — but it matters. If you read a clause and it does not make sense, if the language seems designed to confuse rather than clarify, or if the overall tone of the contract treats you as a liability to be managed rather than a person being hired — pay attention to that feeling.
Contracts reveal how employers think about their employees. A contract that is one-sided, vague, and full of restrictions tells you something real about the workplace you are about to enter.
What to Do Before You Sign
1/ Ask for time — request several days to review properly. Document the request.
2/ Read every clause — especially termination, non-solicitation, IP, bonus, and hours provisions.
3/ Get verbal promises in writing — email your contact and confirm what was discussed. Ask for the contract to be updated to reflect it.
4/ Get legal advice — a one-hour employment lawyer consultation before signing costs far less than the consequences of signing something you do not understand.
5/ Negotiate — contracts are not take-it-or-leave-it documents. Employers expect some pushback from informed candidates. Asking questions or requesting changes does not cost you the job offer — and if it does, that tells you something important too.
Quick Summary
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Red Flag
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What It Means
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|---|---|
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Pressure to sign immediately
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Something in there they do not want you to read
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ESA-only termination clause
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Giving up months of potential severance
|
|
Verbal promises not in writing
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Those promises do not legally exist
|
|
Non-compete clause
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Outdated and likely unenforceable — but signals a poorly drafted contract
|
|
Unlimited hours language
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Employer expects overtime without paying for it
|
|
Fully discretionary bonus
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Bonus may never be paid regardless of performance
|
|
Broad IP clause
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Your side projects may belong to your employer
|
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Mid-employment signing with nothing in return
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May not be binding — but creates confusion
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The bottom line: Signing an employment contract is one of the most consequential legal decisions of your working life — and most people do it in under five minutes. The clauses buried in that document can determine how much you receive if you are ever fired, whether you can work in your industry after leaving, and whether promises made during recruitment are enforceable.
Slow down. Read it. Ask questions. And if something does not feel right — it probably is not.
