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Are employees restrained by and limited to those obligations and entitlements provided under the employment agreement?

That depends on how the agreement is drafted.

An employment agreement may set out an employee’s entitlements during employment and upon their termination. The agreement may also set out an employee’s obligations during and after employment. An employment agreement that is not properly drafted may have unintended effects for both the employer and employee down the road. For example, if a termination clause is not drafted with the utmost care, it may be unenforceable at law, allowing the employee to claim a greater amount of compensation upon termination than originally bargained. Moreover, if the Court deems a non-competition or non-solicitation clause unreasonable, it may be struck from the agreement, leaving an employer particularly vulnerable upon an employee’s exit from the organization.

It is therefore crucial for the employment agreement to be drafted by legal counsel, to ensure that both the employer and employee fully appreciate the deal that has been reached and can rely upon the agreement, should a dispute arise.

Where termination has occurred or a dispute arises about obligations and entitlements under the employment agreement, both employer and employee should seek legal counsel.

© 2015 Lawrence, Lawrence, Stevenson LLP

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