February 2, 2005

Difference between salary and hourly wages

Question: When hiring someone on a permanent, fulltime basis, what are the pros and cons of the employer paying the employee salary as opposed to wages? Answer: The difference between salary and hourly wage is relatively straightforward — salary is a fixed payment for a defined period of time paid to a person for regular…

October 13, 2004

Cons. of not renewing an employment contract for long time contract employee

Question: We currently have an employment agreement with an employee who has done work for our firm for many years. Every year, we sign a new contract for the upcoming year. The period of her contract is ending soon, and I do not want to renew her contract, although she has done nothing to breach…

May 12, 2004

Getting Existing Staff to Sign Contract

Question: Many of our company’s existing employees are employed without an employment contract. What issues should I be aware of when deciding whether or not to ask these employees to sign a contract that would provide some clarity with respect to issues such as hours of work, termination and severance? Answer: The employment relationship is…

February 4, 2004

Creating a Binding Employment Contract

Question: Do you have some suggestions as to how I may best create a binding employment contract? Answer: Employment contracts codify the essential terms and conditions of the employment relationship. Spelling out the rights and obligations of both the employer and the employee will reduce the likelihood of misunderstandings developing or disputes arising during the…

October 15, 2003

Can an employment contract be for life?

Question: Is there a maximum length of time an employment contract can be for? Can an employment contract be for life? Answer: In order to answer this question it is important to understand the distinction between a fixed-term contract of employment and an indefinite-term contract of employment. A fixed-term contract is one that terminates automatically…

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