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Jun 26, 2019 · In order for a contract to be valid, “consideration” must be given to the employee in exchange for their agreement to the terms. At the start of the employment relationship consideration is the job itself. This is why is it SUPER IMPORTANT to make sure new employees sign their contract BEFORE they start work.
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In legalese, “consideration” refers to something of value that is exchanged between parties entering into a contract. Without consideration, a contract is not legally binding. Importantly, when an existing employment contract is modified or replaced, the employer must provide “fresh consideration” to the employee.
Jun 17, 2024 · Consideration means something “new and of benefit”, beyond continued employment, that flows to the employee in exchange for their agreement to the new contract. The Courts will not enforce a new contract if it was signed under duress or under the threat of termination.
Aug 22, 2019 · Key Takeaways. The Court’s holding that a resignation breaks the chain of employment, even if it is rescinded prior to its effective date, is a favourable result for employers. Nonetheless, the need for fresh consideration will depend on the situation at hand.
The short answer: Signing an Employment Contract, or even an offer letter, can cost you tens of thousands of dollars (or more) and expose you to unwanted changes in your duties, compensation, and even location of work.
Oct 7, 2024 · One of the biggest mistakes employers make when updating employment contracts is failing to offer legitimate fresh consideration – even though the bar for consideration to be enforceable is quite low. A recent decision by the Ontario Court of Appeal is good news for employers, however, as it affirms once again that when it comes to the ...
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Does a new employment contract have a value?
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Mar 25, 2021 · What is ‘something of value’ to make an employment contract binding on an existing employee? Existing employees can sign and be bound by new, enforceable employment agreements, but only if they receive some concrete valuable benefit in return.
