Successive fixed-term employment contracts

Fixed-term versus indefinite contracts
By Colin Gibson
|Canadian Employment Law Today|Last Updated: 03/05/2014

Question: If a one-year fixed-term employment contract with a specified end date and a termination clause is renewed annually without any changes, does the termination clause remain valid?

Answer: At common law, a contract of employment is presumed to be of indefinite duration and is subject to an implied term requiring the employer to give reasonable notice if it wants to dismiss the employee without cause.

However, the parties to an employment relationship can create a written contract that contains different provisions. For example, an employer and employee can agree to an express termination clause in their employment contract, as long as the clause meets or exceeds the employee’s termination entitlement under the applicable employment standards legislation.