Please note we are not lawyers. This post is not a substitute for legal advice.
As Legalese is not our style, we are going to do our best to simplify the concept of “consideration”.
In the workplace, consideration happens when an employer modifies its employees’ existing work contract by introducing new conditions. In Canada, a verbal agreement is also a contract, by the way.
If you want existing employees to sign their new contract, the Law says you have to offer them “something of value” in exchange for their signature.
Usually, that “something” is a salary increase, a bonus, a promotion or additional benefits.
Don’t make these mistakes
A lot of employers make the mistake of downplaying the new contract, by telling their employees that “it doesn’t change anything” or that it is “nothing to worry about”.
Quite frankly, if it were the case, there wouldn’t be a new contract in the first place!
In an attempt to save money, employers also make the mistake of not offering consideration. This could land you in hot water, legally-speaking.
You need to plan how you are going to introduce the new contract to your existing employees, as well as the type of consideration you will provide.
This is definitely not something casually done at the annual Christmas office party!
If you are in a situation where you are wondering if you should pay your employees consideration, please visit our website or give us a call at 604-546-1535. We can assist you with this…and more.