Am I Protected Without an Employment Contract?

Understanding Your Rights Under Ontario Employment Law

When starting a new job, many people expect to sign a formal written contract. But in Ontario, that doesn’t always happen. Sometimes you may only receive an offer letter, or even just a verbal agreement to start work. This raises an important question: If you don’t have a written employment contract, are you still protected?

The short answer is yes — but it’s important to understand how.

1. No Written Contract Doesn’t Mean “No Contract”

Under Ontario law, an employment relationship is a type of contract — even if it’s not written down. If you accept a job and start working, a contract exists automatically through your agreement to work and the employer’s agreement to pay you. This is often called an implied employment contract.

However, the terms of that contract are not just “whatever was said.” They are also shaped by:

• Employment Standards Act, 2000 (ESA) – the minimum rights for most employees in Ontario.

• Human Rights Code – protection against discrimination in employment.

• Common law – judge-made rules that fill in the gaps, such as reasonable notice for termination.

2. What the ESA Gives You — Even Without a Written Agreement

The ESA applies to most employees in Ontario and sets out minimum standards that your employer must follow, including:

• Minimum wage – You must be paid at least the current Ontario minimum wage.

• Hours of work and overtime pay – Limits on daily/weekly hours and entitlement to overtime pay after 44 hours/week (unless exempt).

• Public holidays – Paid public holiday entitlements.

• Vacation time and pay – Minimum two weeks (three weeks after five years) plus vacation pay.

• Leaves of absence – For example, pregnancy/parental leave, sick leave, family responsibility leave.

• Termination pay – Minimum notice or pay in lieu when your employment ends (unless you were dismissed for just cause).

Your employer cannot contract out of these rights — even if you had signed something saying otherwise.

3. Common Law Protections — Often More Generous Than the ESA

If there’s no written contract limiting notice of termination, you may be entitled to common law reasonable notice, which is usually much more generous than ESA minimums.

For example, the ESA might require only 8 weeks’ notice for a long-term employee, but common law notice could be 6 months, 12 months, or more — depending on factors like your age, length of service, position, and job market conditions.

This is one reason why many employers do want written contracts — they can include a termination clause that limits notice to ESA minimums, reducing their liability.

4. Risks of Not Having a Written Contract

While no written contract means you keep some valuable protections, it can also create uncertainty:

• Disputes over job duties – Without clear terms, disagreements about your role can arise.

• Confusion about bonuses/commissions – Harder to prove entitlement without written terms.

• Post-employment restrictions – Without a signed non-compete or non-solicit clause, your employer may have less control over where you work after leaving — but they might still try to enforce certain protections through other legal means.

5. Bottom Line

If you don’t have a written employment contract in Ontario, you are still protected by the Employment Standards Act, the Human Rights Code, and common law. In some cases, not having a written agreement can even work in your favour when it comes to termination pay.

However, a lack of written terms can lead to disputes or misunderstandings. If you’re unsure about your rights — especially when your employment is ending — it’s wise to speak with an employment lawyer or paralegal to understand your full entitlements.

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Disclaimer: This post provides general information only and is not legal advice. For advice about your specific situation, consult a legal professional.