Fixed-term contracts can expose employers to costly wrongful dismissal claims, severance payouts, and common law damages if not drafted and managed properly, lawyers say
The Canada Revenue Agency is facing criticism from the Union of Taxation Employees for not renewing over 1,000 worker contracts set to expire on May 16.
Union president Marc Brière called on Prime Minister Mark Carney and his government to stop the cuts, which he believes are an attack on the public service.
Brière says these cuts will affect the agency's contact centers, leading to longer wait times and growing frustration.
Aside from the pushback, legal experts say these contracts raise broader concerns.
Fixed-term contracts can open the door for employers to experience greater liability, says Tiana Perricone, employment lawyer from Workly Law.
“If it really is a fixed-term contract, make sure that you, as the organization, have the ability to keep that person on for the full term," she says.
Perricone says in some cases, having a worker on an indefinite term can be better than having a person on a fixed-term contract.
Fixed-term contracts are usually agreements that have a definite duration, with no expectation of ongoing employment once the term expires.
A properly drafted contract will include provisions for a defined start date and end date, and a well-drafted termination clause, according to Paulette Haynes, founder of Haynes Law.
“In that contract will be a very...
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