Deadlines, whether they be on contracts or termination letters, can lead employees to feel stressed and sometimes pressured. In this post we will discuss does and don’t when it comes to giving time to sign.
Time to Sign and Termination Agreements
In a typical termination the employer will present the employee with a termination package. This package will usually consist of two parts:
- The employee’s minimum statutory entitlements – in Ontario, these will come from the Employment Standards Act, 2000
- A gratuitous amount, that the employee will receive ONLY if they sign the release by the deadline
In order to avoid an employee later challenging their agreement to a termination package, it’s important that the employer give the employee enough time to have the termination package reviewed by a legal counsel. At minimum employees should be given one week. Extension requests by the employee should be granted.
An employee who agrees to something under pressure, such as being told if they don’t sign on the spot the offer will be off the table, may be later able to claim they agreed under duress and have any release set aside.
If you’re an employee, facing a deadline in your termination letter, don’t be shy about asking for an extension. Your employer should grant you one!
Time to Sign and Contracts
When hiring a new employee, in order for the contract to be valid, it needs to be signed before the employee’s first day of work. However, this fact should not incentivize an employer to give an employee less time to review a contract. As with a termination settlement, the prospective employee needs to be given a meaningful opportunity to get legal advice before signing their contract.
Don’t send a prospective employee a contract to sign the night before they are supposed to start! Not providing them with the opportunity to get legal advice or making them feel pressured to sign could result in voiding the contract. Instead of imposing a tight deadline, change their start date!
When presenting an existing employee with a new contract the employer needs to tread carefully. The employer cannot impose a harsh deadline or make threats to the employee, such as failing to sign the new contract will result in termination.
The Bottom Line with Time to Sign
People need to understand, or at least have been given an opportunity to understand, what they are signing in order for it to be valid. Typically this means imposing a deadline that is at least a week away but employers should give employees the opportunity that they need to consider offers and this also means granting extensions when requested.
If you have questions about time to sign, get in touch!
