Creating a solid employment contract for an associate veterinarian isn’t just good practice, it’s essential for preventing misunderstandings, protecting your clinic, and complying with recent Ontario law changes. This article covers the key clauses you should include, common pitfalls to avoid, and recent legal obligations you need to build into your contracts now.
Key Takeaways
- As of July 1, 2025, Ontario employers with 25 or more employees must provide new hires with prescribed information in writing before their first day (or as soon as reasonably possible).
- Beginning on January 1, 2026, new legal requirements under Regulation 476/24 require publicly advertised job postings to include compensation (or a range), disclose AI usage, state vacancy status, avoid Canadian experience requirements, keep postings/applications records, and inform interviewees of the hiring decision within 45 days.
- Since October 2021, non-compete agreements are largely prohibited in Ontario under, except for “executive” roles and in sale-of-business scenarios. This prohibition applies to all non-compete agreements entered after October 25, 2021.
1. Role Description & Clinical Scope
- Be explicit about duties: surgeries, diagnostics, wellness exams, emergencies, exotics etc.
- Specify appointment loads, admin time, charting expectations, mentoring or teaching, inventory or client communications.
Sample Clause:
“The Associate will provide small-animal primary care including wellness, diagnostics, dentistry, elective surgery, and emergency after-hours rotation as defined in this agreement. The Associate’s average caseload will be _ appointments/day, surgeries/week, plus __ hours of administrative and charting time per week.”
2. Scheduling, Hours & Overtime
- Clarify normal working hours, weekend work, on-call or after-hours commitments.
- Include how overtime works, or whether any exemption applies. Under Ontario’s Employment Standards Act (ESA), veterinarians are exempt from overtime but most employees are entitled to overtime after 44 hours per week.
- If using an averaging agreement (when permitted), clear consent and documentation is crucial.
3. On-call & Emergency Expectations
- Define rotation (e.g. one weekend/month, evening duties), required response times, whether travel to clinic or remote triage is needed.
- Define compensation for on-call time vs callbacks. Be clear: flat stipend vs per-call fee vs production credit.
4. Compensation Structure: Base + Production / Bonuses
- Be explicit: what counts as “production” (doctor’s fees, diagnostics, retail, etc.), how revenue is calculated (collected vs billed), handling of returns / bad debt.
- Specify frequency of production calculations (monthly/quarterly), guarantees or draws, how negative balances are handled.
- Include treatment of vacation pay, CPD pay, statutory holidays etc.
5. Benefits, Professional Support & Licences
- Include: health, dental, disability, liability insurance; support for CVO licence fees or other relevant regulatory/licensing fees.
- Professional development (CPD) budgets: amount, paid time off, reimbursement of expenses, required proof.
- Additional perks as relevant: uniforms, parking, moving/relocation, subscription services for learning / software, etc.
6. Legal & Regulatory Compliance Updates (New Clauses You Must Incorporate)
These legal changes are now in force or soon will be. Your contract & hiring process should reflect them.
- New-hire written information: As of July 1, 2025, for clinics with 25+ employees, offer letters / contracts must include prescribed employment information in writing before first day (or as soon as reasonably possible). Required items include employer legal name/operating name, employer contact info, anticipated initial workplace/ work location, starting wage or commission, pay period/pay day, and initial hours of work.
- Publicly advertised job postings from January 1, 2026: Under Regulation 476/24, posting requirements include compensation (or range), AI usage disclosure, whether the posting is for an existing vacancy, prohibition on Canadian experience requirements, retention of postings + applications for 3 years, informing interviewees of hiring decision within 45 days after their interview. Applies only to employers with ≥ 25 employees.
7. Non-Compete, Non-Solicitation & Restrictive Covenants
- Non-compete clauses are prohibited under the ESA for most employees.
- Exceptions:
- Executives: defined broadly to include roles like CEO, CFO, President, Chief Legal Officer, Chief HR Officer etc.
- Sale or lease of a business context when seller becomes employee of purchaser immediately after sale and a non-compete is part of the sale agreement.
- Non-solicitation and confidentiality / IP / trade secrets clauses are still legal and key tools. Be sure to define what “solicitation” means, how long it applies post-employment, and its scope (clients, patients, staff).
8. Termination, Survival & Amendments
- Make sure your contract contains clear and enforceable termination provisions – these should be drafted or reviewed by an employment lawyer.
- List which clauses survive termination (non-solicitation, confidentiality, record-keeping, etc.).
- If amending contract mid-term (changing compensation, duties, etc.), ensure fresh consideration and signed agreement.
9. Common Pitfalls to Avoid
Risk: Vague or missing production/compensation terms
- Why it matters: Associates may dispute what counts as “production,” or whether deductions, returns, or bad debt apply. Unclear formulas lead to disagreement.
- What to do: Define exactly what revenue sources count (doctor’s fees, diagnostics, retail, etc.), whether it’s “billed” or “collected,” and how often pay is calculated. Include examples.
Risk: Using non-compete clauses improperly
- Why it matters: The ESA bans most non-compete clauses entered on or after October 25, 2021, except for senior executives or in sale-of-business contexts. Clauses that are overly broad or ambiguous will be void even in enforceable contexts.
- What to do: Remove non-competes for non-executive associates. Use narrowly tailored non-solicitation instead, define “solicitation,” limit duration/geography, and ensure clarity.
Risk: Misclassifying roles as exempt from overtime or other ESA protections
- Why it matters: Roles labeled “manager,” “supervisor” etc. are often assumed exempt, but Ontario law focuses on actual duties. Misclassification can trigger back-pay or claims.
- What to do: Describe duties clearly in contract, include a clause about overtime rules or exemption status, and review actual work practices to ensure they align.
Risk: Using or requiring medical certificates for short sick leaves
- Why it matters: Since October 28, 2024, Ontario prohibits requiring medical certificates for the first three unpaid sick days per year. Requiring them violates ESA.
- What to do: Update sick leave policies and contracts so that for short sick leaves (first three days), you do not require doctor’s notes. Use “reasonable evidence” language if needed.
Risk: Outdated termination, notice & survival clauses
- Why it matters: Contracts with termination provisions that don’t meet current ESA minimums or ambiguous survival of restrictive/legal clauses can be challenged.
- What to do: Ensure contracts include ESA compliant termination provisions, list which clauses (e.g. confidentiality, non-solicitation) survive termination, and update handbook/policies accordingly.
Protect Your Practice with Expert Contract Legal Advice
Designing thorough, legally-sound contracts for associate veterinarians can feel overwhelming, especially in light of Ontario’s recent changes around job postings, non-compete law, and new hire disclosures. That’s where our lawyers for veterinarians step in.
With Greenwood Law, you get:
- A custom contract review to ensure all clauses (role scope, on-call obligations, overtime, production pay, etc.) are clear, enforceable, and up to date with legal requirements.
- Drafting or updating your job-posting / offer templates so they meet legal requirements (salary/range, AI usage, applicant decisions timeline, etc.).
- Assistance establishing non-solicitation and confidentiality clauses that protect your clinic while avoiding voided non-compete clauses.
- Guidance on mid-contract amendments (fresh consideration, documentation) to make sure role/duty/pay changes are valid and enforceable.
- Support for benefit/licensing provisions, licence fees, CPD time, liability insurance, ensuring these are treated properly in your contracts.
Why it matters: a well-drafted contract reduces risk, helps attract and retain great associates, prevents disputes, and keeps you compliant with Ontario’s changing legal landscape.
If you’d like Greenwood Law to audit your current associate contract, or build a custom one for your practice, we’d be happy to help set up a call or send you a proposal.
