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Beyond the handshake: Protect your business with employment agreements, says lawyer

麻豆社国产lawyer Kelly Fortune will present at a 麻豆社国产Chamber of Commerce event on April 8.聽

For a long time in Squamish, it likely wasn't uncommon for a business owner to hire someone with a simple verbal agreement.

We were a small town where things were more casual all around (old-timers say that 鈥渂uild first, ask questions later鈥 was the way certain things got done, for example).

These days, though, we are a larger community, and life is just more complicated.

In 2025, those casual agreements can put business owners and employees in a bind if the employment relationship goes south.

It is with this in mind that local lawyer is presenting at a 麻豆社国产Chamber of Commerce Lunch & Learn on Tuesday, April 8.

"The reason that we're giving this talk is that 麻豆社国产is a town that has been run on a handshake agreement," Fortune said.

"And with the economic uncertainty right now, especially with the border and the tariffs 鈥 it's a pretty critical time that employers in town start to [take] a proactive approach to employment issues, especially with regard to termination."

In her presentation, among other things, Fortune will set out the legal obligations of employers on termination and how they can mitigate damage at the outset of the employer-employee relationship.

What is the law? 

Fortune said that, as a general principle, an employer can terminate an employee for any non-discriminatory reasons, as long as the business pays out the requisite notice.

The statute that applies to provincially regulated employees is the Employment Standards Act.

That lays out the minimums required, such as one week of notice or pay for an employee terminated after more than three months' work, but less than one year of employment.

Most employees and employers are familiar with those

However, in addition to statutory notice, employers are also required to provide common law notice.

鈥淭hat's based upon what is reasonable in the circumstance, having regard to the employee's age, position, length of service, experience, education鈥攁ll those factors鈥攁nd this is a subjective analysis, and so this is where the legal risk really lies," Fortune said.

"Because what an employee thinks is reasonable versus what the employer thinks is reasonable is going to be very different. And depending on those factors, the court could award up to two years of common law notice (or pay) in addition to statutory requirements. So this, depending on the employee salary, could have detrimental impacts to a small business if they do this incorrectly."

A lot of employers are unaware of their common law requirement, Fortune said.

She said that the best way to mitigate the legal risk for everyone involved鈥攅mployer and employee鈥攊s with a well-drafted employment contract.

"So that is what we're trying to get away from鈥攖his 'friendly' approach that 麻豆社国产has always had, and move to more of a, 'Let's get this agreement in writing from the outset, while the relationship is good,' and then both parties can ensure that they're being treated fairly and to avoid uncertainty down the line."

'Document'

Another part of Fortune's talk will focus on with-cause terminations and some of the tools that can be implemented in the workplace 鈥渢o proactively set employee expectations and to properly document everything.鈥

Without-cause terminations are when someone is fired without fault being applied. The employer is simply ending the contract.

With-cause firings are for an employee's serious workplace misconduct.

"Our biggest tip with regard to just-cause terminations is to make sure that you have company policies. Make sure that your employees are aware of those company policies that clearly set out the expectations you have for them, and making sure that you're documenting everything. And that you're communicative with your employees, so that they know what's expected of them, and they know what they need to do to meet your company goals," she said.

"And any time that there's a payroll issue or performance issue, that those things are well documented, and that the communication line is very clear."

What she has seen happen is an employer will want to fire someone for just cause, but they don't have any paper trail.

How it started

Asked why she was interested in this aspect of law for her career, Fortune said that it is rewarding work.

"This is an emotional area of law, if you're working for the employee, but ultimately, you're trying to help everybody move forward; help the employee get set up for re-employment, and just make sure that everybody is dealing with each other fairly."

Fortune said in a town that is growing, but still small-ish, setting out a contract or documenting issues that come up can feel awkward because of our interconnectedness.

"Some of these conversations are harder to have in a town of this size, because ... there's the personal connections as well. So it's often even more difficult to say, 'OK, it's time to paper this employment relationship,' but I think you're just protecting your business. And, with regard to the employment contract, it's protecting the employee just as much as it's protecting the employer."

To learn more or get tickets to the Lunch & Learn presentation, go to events on the


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