Author: Walter Law Group

What Is an Executive Employment Agreement?

An executive employment agreement is a contract that sets out the working relationship between a senior employee and a company. It covers pay, job duties, how the job can end, and legal protections in Ontario.

At first, it might seem like just a formal job offer. In truth, it affects your future, your pay, and what happens if your situation changes. Many executives think the terms are standard, but they usually are not.

This agreement covers more than just salary. It also affects ownership, your decision-making power, and how the board sees your role. These points are often more important than people realize.

Why Executive Employment Agreements Call for Careful Review

Once you sign it, changing the agreement later is difficult. Ontario courts pay close attention to the wording in these agreements. Even small details can take away rights you would otherwise have. This could limit your severance, bonuses, or benefits in ways you might not expect.

Many executives accept new roles quickly, especially during mergers, acquisitions, or busy deals. They focus on the opportunity and often overlook the details.

However, these details determine how you leave the company. A good agreement should match your specific situation, not just follow the employer’s standard template. If it does not, you may be at a disadvantage from the start.

Executive Employment Agreement Checklist

Before you sign, take your time. Review each section carefully:

1. Compensation and pay structure
2. Termination provisions
3. Bonus and equity treatment
4. Restrictive covenants
5. Duties and reporting lines
6. Liability exposure and indemnity
7. Change of control protections
8. Dispute resolution process

Each of these points affects your long-term interests. Overlooking even one can have bigger consequences than you might expect.

Compensation Structure

Begin with the basics, then look at the details.

Your base salary is only one piece of the total package. Look at:

• Bonus payments and how they’re calculated
• Whether targets are realistic or discretionary
• Signing bonus terms and repayment obligations
• Long-term incentives tied to ownership or performance

Some agreements let the company decide whether to pay bonuses. This might seem harmless, but it is not. If the company chooses not to pay, you may have few options.

You should also think about taxes. A large signing bonus or delayed payments can lead to unexpected tax bills, depending on how they are set up.

For example, two executives with the same salary can end up with very different take-home pay, depending on how their compensation is structured.

Termination Provisions

This section often carries the most risk. Termination provisions define what happens when the employment relationship ends. Whether you resign, are terminated, or leave for good reason, the language matters.

In Ontario, courts may award significant compensation if there is no enforceable termination clause. But if the clause is valid, it can limit your pay to minimum standards under applicable laws.

Review:

• Notice periods
• Severance entitlements
• Whether benefits continue
• How disability impacts termination rights

Some clauses try to cover every possible situation, but being too broad can make them unenforceable. Others are written to limit your rights as much as possible.

It is often hard to tell which type you are dealing with.

Bonus and Equity Rights on Termination

In short, do not assume any rights continue after termination unless the agreement clearly says so.

Many executives believe they will receive prorated bonus payments or retain equity after termination. Often, the agreement says otherwise.

Look for:

• Whether bonus payments are earned or must be actively employed at payout
• What happens to stock options or shares
• Vesting schedules tied to continued employment

After an acquisition or merger, equity can be accelerated, frozen, or cancelled, depending on what the agreement says. If a large part of your pay comes from incentives, pay special attention to this section.

Non-Compete and Non-Solicitation Clauses

These clauses limit what you can do after you leave the company. In Ontario, non-compete clauses are generally unenforceable except in limited circumstances, such as the sale of a business or for the most senior executives. Still, some employers include them.

Non-solicitation clauses are more common. They can prevent you from contacting clients, employees, or even contractors.

Check:

• Duration of restrictions
• Geographic scope
• Whether they protect legitimate business interests

If a restriction is too broad, it may not be enforceable. However, challenging it can be expensive. It is better to negotiate these terms before you sign.

Duties, Reporting Structure, and Performance Expectations

What exactly are you being hired to do?

Your job duties should be clearly described. If the language is vague, the employer has more flexibility, but it can cause problems if your role changes later.

Pay attention to:

• Reporting lines to directors or the board
• Authority over teams or budgets
• Performance KPIs tied to compensation

If your job changes a lot, it might count as constructive dismissal in some cases. Whether this applies depends on the exact wording in your agreement. This is an area that often seems fine at first, but problems can arise later.

Confidentiality and Intellectual Property Clauses

These provisions protect the company’s interests. That’s expected. However, these clauses should also be fair.

Most agreements include clauses requiring you to:

• Keep confidential information secure
• Assign intellectual property created during employment
• Return company materials upon termination

The main issue is how far these clauses reach. If they are too broad, they might affect your ability to work in the same industry after you leave. You want to protect the company’s interests without limiting your own future more than necessary.

Indemnification and Liability Exposure

Executives take on significant risks. Indemnification clauses are designed to protect you from personal liability when acting in the best interests of the company. That includes decisions made as part of your role.

Look for:

• Coverage for actions taken in good faith
• Whether legal costs are advanced
• Any exclusions tied to misconduct

If your job involves clients, financial choices, or following regulations, these protections are even more important than many people think. If the wording is not right, you could be left unprotected.

Restrictive Covenants & Compensation Clauses

These provisions often overlap with non-compete terms but can go further.

They may limit your ability to:

• Join a competitor
• Start a similar business
• Work with former clients

At the same time, compensation clauses may tie certain payments to compliance with these restrictions. If you breach them, you could lose bonus payments or equity. This creates a trade-off between your freedom and your financial benefits. You should make this balance by choice, not by accident.

Change of Control and Exit Protections

What happens if the company is sold? If the company changes ownership, your role can change quickly. New owners might have different plans, and you may not fit into the new structure.

Protections to consider:

• Severance triggers upon acquisition
• Retention bonuses tied to staying through a deal
• “Good reason” definitions allowing you to exit with compensation

Many executives ignore this section until a deal is actually happening. At that point, it often becomes the most important part of the agreement.

Severance Package & Long Term Incentives

How you leave the company is just as important as how you join. A well-drafted severance package should reflect your position, tenure, and contributions. It should also conform to common law expectations in Ontario, unless intentionally negotiated otherwise.

Review:

• Extension of salary and benefits
• Treatment of long-term incentives
• Conditions tied to receiving payments

Some agreements only offer the minimum severance required by law, while others give you extra protection.

The difference can be significant.

Dispute Resolution Clauses

If a problem comes up, how will it be resolved? Dispute resolution clauses outline the process. That might include mediation, arbitration, or court proceedings.

Consider:

• Whether arbitration is mandatory
• Location and governing law
• Cost allocation between the parties

These clauses can impact how easily you can protect your rights. They may not seem important at first, but they can have a big effect.

Red Flags in an Executive Employment Contract or Agreement

Watch for these:

• Vague or excessively broad termination provisions
• Discretionary bonus payments with no clear criteria
• Restrictive covenants that limit future job opportunities
• Lack of indemnification for directors or senior roles
• Provisions that conflict with applicable laws
• No protection in the event of a merger or acquisition
• Compensation structures that ignore tax consequences
• Language that allows the employer to unilaterally change responsibilities
• No clarity around disability or extended leave
• Terms that heavily favour the company without balance

If you see several of these issues in one agreement, you should stop and reconsider before signing.

A lawyer who understands Ontario employment law and the Employment Standards Actcan:

• Identify problematic provisions
• Suggest revisions that protect your interests
• Help negotiate a stronger agreement

Work with an Executive Compensation Lawyer Before You Sign

You will not have many chances to negotiate an agreement like this. Once you start working, the employer has more control, and it becomes harder to make changes to the agreement.

The goal is not to create conflict, but to make sure everything is clear. In the end, this agreement shapes more than just your job. It sets your position, your protections, and your options if things change. For better or worse, they usually do. Get in touch with our team today for a consultation.

A lot has changed in the past few years. At first, working from home seemed like a short-term solution. Over time, it became the norm. Now, many employees across Canada are being told to return to the office, often with strict policies and little flexibility.

This leads to a question that’s not as straightforward as it seems. Can your employer actually require you to return? Let’s break it down together.

Understanding Return-to-Office Mandate in Canada

A return to office policy means your employer asks you to stop working remotely or in a hybrid setup and come back to work on site. In Canada, employers can usually do this, but there are some limits.

Both federal public service and private sector employers can set workplace policies, including where you work. However, these policies can’t override your written contract or make major changes to your job’s key terms without consequences.

This is where things can get complicated. For many employees, especially those who worked remotely for a long time, the sudden shift back to the office can feel abrupt. In some situations, it might even raise legal issues.

Main Reasons Employers Are Pushing for a Return to the Office

There isn’t a single reason for this push. It’s a mix of practical, cultural, and sometimes unclear factors.

Here are some of the main reasons:

• Productivity concerns
  Many executives believe that having employees in the office boosts productivity. While this isn’t always supported by evidence, it’s a common view.
• Collaboration and culture
  Many companies say that working together in person helps build stronger teams. They mention missed conversations and slower decisions as things that are less likely to happen in an office setting.
• Control and oversight
  Some employers simply feel more comfortable when they can see their employees at work.
• Long term strategy shifts
  Organizations, including the federal government, are rethinking how public service works. This often means expecting more people to be in the office.
• Real estate and infrastructure
  Empty office space costs money, and this can influence decisions, even if it’s not always talked about.

Still, none of these reasons automatically gives employers the right to require a return to the office without limits.

Can Your Employer End Your Remote Working Arrangement and Force You Back into the Office?

The short answer is yes, but there are risks involved. If your contract doesn’t promise remote or hybrid work, your employer can usually change your work location as long as they give you reasonable notice. Sometimes, the situation can get even more unbearable.

However, if remote work became an important part of your job, the situation is different.

Courts look at points such as:

• How long you were allowed to work remotely
• Whether it was presented as permanent
• If other employees had similar arrangements
• Whether your employer encouraged hybrid arrangements as part of a long-term strategy

If going back to the office is a major change to a key part of your job, it could be considered constructive dismissal. This means that even if you resign, the law might see it as if you were forced to leave. In that case, you could be entitled to severance.

Can Your Employment Contract Be Terminated for Not Returning to the Office?

Yes, but the details of your situation matter. If an employee refuses a lawful request to return to the office, the employer may take disciplinary action, which could include termination in some cases.

But this doesn’t always mean the employer is in the right. Recent disputes, such as the widely reported Bell Canada return-to-office terminations, show that unclear workplace attendance expectations can quickly lead to escalation between employers and employees.

Consider this:

• Was the return to office policy clearly communicated?
• Was there reasonable notice?
• Did the employee have legitimate concerns, like family status or health?
• Did the employer consider flexible work arrangements?

If an employee refuses for a reason protected by human rights law, like family status or caretaking responsibilities, the employer must accommodate them unless it causes undue hardship.

If the employer doesn’t do this, they could be held responsible.

There have already been cases where employees won on appeal because their employers didn’t fully understand their responsibilities.

The Bell Canada Return-to-Office Terminations: A Real-World Example

A widely discussed Canadian return-to-office dispute involved Bell Canada in 2026. Public reports indicate that Bell terminated several employees for cause, alleging non-compliance with its return-to-office requirements. The controversy focused on Bell’s use of office swipe-card data to determine whether employees met attendance criteria under the policy.

The situation received considerable media attention, with many employees arguing that expectations were unclear. Some stated that the return-to-office requirements were not communicated effectively, while others questioned the accuracy of the company’s attendance-tracking methods.

While each case may differ, the Bell Canada situation demonstrates that return-to-office policies can be complex. Employers have the right to set attendance requirements, but employees retain rights if policies are unclear, inconsistently applied, or introduced without reasonable notice.

The Bell situation shows the importance of reviewing workplace policies, documenting communications, and gaining clarification when expectations are unclear. As return-to-office disputes increase in Canada, courts and tribunals will continue to shape how these matters are handled.

What If Your Remote Work Was Only Implemented Temporary?

Many employers rely on this point. If remote or hybrid work was clearly described as temporary, especially during the pandemic, employers are more likely to succeed in bringing employees back to the office.

But even then, it’s not automatic. Courts will still consider how long the remote arrangement lasted. A few months is different from several years. Over time, even a temporary setup can become an expected part of your job, even if it’s not in writing.

Once something becomes a key part of your job, taking it away without reasonable notice can lead to legal claims. So, the timeline, communication, and expectations all matter. Sometimes, these factors matter even more than the original agreement.

What to Do If You Are Asked to Return to the Office

If you’re being asked to return to the office, take your time before making a decision. Pause and consider the whole situation.

Here’s a practical approach:

1. Review Your Written Contract

Check for any details about work location, hybrid schedules, or remote work.

Even small details in your contract can make a difference.

2. Document Everything

Save copies of emails, policies, and any conversations you have about your work arrangement.

Having this evidence is important if the situation becomes more serious.

3. Assess the Change

Be honest with yourself as you consider the change.

Is this just a small change, or does it have a big impact on your daily life, commute, and responsibilities?

4. Consider Your Personal Situation

Family status, childcare needs, or even needing to support someone at home can all be important factors.

These aren’t just personal matters—they can also have legal significance.

5. Make a Formal Request

If you need flexibility, submit a written request for hybrid work arrangements or to continue to work remotely.

Employers are expected to take these into account in good faith.

6. Avoid Immediate Resignation

Quitting too soon can make things more complicated for you.

Sometimes, what seems like your only choice isn’t the best option from a legal standpoint.

Severance and Return to Office Mandates

This is where things get real.

If a return to office policy effectively forces an employee out, the question becomes whether they were constructively dismissed.

And if so, they may be entitled to severance.

Courts look at:

• Length of service
• Position and responsibilities
• Age of the employee
• Availability of similar work

If an employee quits because their employer suddenly requires them to work on site most of the week, that could support a legal claim.

This is especially true if the change affects their hours, commute, or family responsibilities.

In some cases, employees have won constructive dismissal claims even when employers thought their changes were reasonable.

Often, it comes down to one key question.

Would a reasonable person accept this kind of change?

Speak to an Employment Lawyer to Protect Your Rights

Before you sign anything. Before you accept or refuse. Before you make a move that can’t be undone. Talk to someone who understands this area of law. Return-to-office mandates are still changing, and courts are still figuring out how to handle these cases.

What seems simple at first is often more complicated.

An experienced lawyer can help you:

• Fully understand your rights
• Assess whether a constructive dismissal claim exists
• Determine if the employer allowed enough notice
• Evaluate accommodation obligations linked to family status
• Navigate negotiations with your company

Sometimes, just having clear information can make all the difference. If you’re facing a return to office policy and something feels off, trust your instincts. There’s usually a good reason for that feeling. Get in touch with our team today to schedule your consultation.

Stress is an everyday part of life, but what happens when it affects your ability to perform your job. Poor mental health, left unchecked can cause undue hardship and impact your well-being.

If you are suffering from a mental health issue and contemplating taking stress leave, it’s important to understand your employment rights.

Eligibility Criteria for Stress Leave in Ontario

In Ontario, sick leave is covered by the Employment Standards Act (ESA) . The ESA allows eligible workers to take sick leave for a personal illness, injury, or medical emergency. This includes mental health conditions such as stress, depression, anxiety and burnout.

Your rights are also protected by the Ontario Human Rights Code (Code). If your mental health issue is deemed a disability, your employer is obligated to make a reasonable accommodations for you.

Because stress can impact people differently, mental health leaves can vary. You may also be entitled to disability benefits under your employment contract, a group disability insurance policy, or your union’s collective agreement.

If you are suffering stress-related struggles, you need an employment lawyer who will fight to ensure you get the disability benefits you deserve.

The team at Walter Law Group is available to provide advice and guide you through the process of going on stress leave in Ontario.

Navigating the Process: How to Apply for Stress Leave

Work can be challenging, and some days are worse than others. However, if you are experiencing excessive stress, you should speak to a health-care professional about your issues and whether taking a medical leave would help.

There may have been a workplace incident that has impacted your mental health. Document any relevant information and tell your health practitioner.

You will need to provide your employers with written or oral notice. You will likely need a doctor’s note that outlines your condition. A medical note can also include the duration of an appropriate mental health leave.

There are legal options available if an employer refuses to acknowledge an employee’s medical condition or grant any stress leave. For example, an employee could be held liable for violating provisions in the ESA, the Ontario Human Rights Code or the Occupational Health and Safety Act .

An employee who is refused stress leave for a legitimate mental health issue may also be able to bring a claim for constructive dismissal and be eligible for severance pay.

Role of Healthcare Professionals in Stress Leave Documentation

Stress can lead to other mental health issues, such as anxiety, depression, and substance abuse. Researchers have also found a link between stress concerns and domestic or sexual violence. That is why it is essential to speak with your healthcare provider as soon as you are feeling overwhelmed.

Taking stress leave can be a challenge if you fail to take all the necessary steps. For example, you should keep track of what you are experiencing, write it down and report it to your doctor. Documented mental health information may help ensure you get the sick leave you require to help you get better.

A healthcare professional may be able to use that information to support their diagnosis of your ailment. And, in the end, it could result in a more complete medical note explaining the steps you have taken to recover and why a sick leave is warranted.

Understanding Employment Contracts and Sick Leave Provisions

Under the ESA most employees have the right to take up to three days of unpaid job-protected leave each calendar year due to a personal illness, injury or medical emergency. This is known as sick leave. Special rules apply to some occupations.

To be eligible, you must work for your employer either part-time or full-time for at least two full consecutive weeks prior to taking the time off.

If you are in a union with a collective agreement or you signed an employment contract, you may be entitled to additional sick leave and disability benefits over and above what is legislated by the ESA. You may even have extended health care benefits for psychological treatment.

This means you may qualify for sick leave beyond the minimum three days mandated by the ESA.

You are entitled to the greater protection provided either by an employment agreement or the ESA. For example, if your contract does not provide a greater right or benefit, then the ESA sick leave standard would apply.

It should also be noted that if you take one paid sick day off under your employment agreement, then you are deemed to have also taken one sick leave day under the ESA.

In addition, unused sick leave days cannot be carried over to the following year.

The Impact of the Ontario Human Rights Code on Stress Leave

“Every person has a right to equal treatment in employment without discrimination or harassment based on disability, among other grounds,” according to the Ontario Human Rights Code. That includes mental health disabilities and addictions.

That means an employer cannot fire someone or deny them a job or promotion if that employee takes stress leave because of a mental health issue.

Under the Code, employers must provide accommodations for workers up to what is considered undue hardship. In addition, employees are entitled to take stress leave for an extended period to recover from mental health and stress issues.

Your employer also has to accommodate a return to work to the same or comparable job when you are ready return to work.

Short-Term vs. Long-Term Disability: What Covers Stress Leave

Many employees are offered the chance to participate in workplace insurance plans when they are hired. Benefit plans vary, but your insurance policy can include such protections as bereavement leave, provisions for a nurse practitioner and income replacement.

You may have short-term disability (STD), long-term disability (LTD) coverage, or both.

As the name implies, short-term disability covers you for a limited period. Typically, STD benefits can last up to six months. If an employee takes a stress-related leave under an STD policy, their stress must be severe enough to make them totally disabled and unable to work.

After STD benefits end, long-term disability insurance benefits begin. If you don’t have short-term disability coverage, you may need to take an unpaid mental health leave and until your LTD claim is approved.

Employment Insurance and Stress Leave

If you are unable to work due to intense stress, and your employer does not provide STD benefits, you may be eligible for Employment Insurance (EI) sickness benefits, which can provide up to 26 weeks of income replacement, offering 55 per cent of your earnings up to a maximum of $668 weekly.

To qualify, you must have paid premiums into EI and prove that:

• you’re unable to work for medical reasons;
• your regular weekly earnings from work have decreased by more than 40 per cent for at least one week; and
• you accumulated 600 insured hours of work in the 52 weeks before the start of your claim or since the start of your last claim, whichever is shorter.

Employer’s Obligations Under Ontario’s Employment Standards Act

The Employment Standards Act is the law that protects workers’ rights, setting down the minimum standards for basic conditions of employment, including wages, work hours, public holidays and vacations, overtime, leaves of absence, notice and severance pay obligations upon termination.

The Act sets out the legal rights and obligations of employers and employees. The minimum ESA standards cannot be ignored by employers and apply even if they are not included in your employment contract. An employee cannot sign away their ESA rights.

Challenges and Solutions: Handling Denied Stress Leave Claims

Unfortunately, stress leave disability benefit denials are not uncommon. Even though you may feel you are entitled to a sick leave, your insurance provider may find a reason to challenge your claim.

If your stress leave claim has been denied, you can request an internal appeal. Like your original claim, the appeal will be handled by the insurer. You can also start a lawsuit to obtain your benefits.

It is important to get sufficient medical documentation and seek the support of a specialist who can provide evidence of your medical condition. You must also undergo any necessary treatment. Insurers commonly deny claims because the claimant does not seek help for their mental health issue.

Attempting to get benefits during a stress leave can be frustrating, and dealing with an insurance company denial can exacerbate your condition. That’s why you should get legal advice.

The experienced employment and disability team at Walter Law Group are here to help you navigate the insurance denial process. We will work tirelessly to ensure you receive the benefits you deserve while on stress leave.

Legal Support and Resources for Employees on Stress Leave

For those on stress leave, there are government resources, such as federal EI sickness benefits and protections provided by the Employment Standards Act and the Human Rights Code.

The Ontario government also offers family responsibility leave, which gives up to three days of unpaid, job-protected leave in the event of a family illness, injury, or family-related emergencies.

For more than three decades, the team at Walter Law Group has been trusted as experts in employment, disability and personal injury law. We are here to protect your rights, and we will vigorously advocate on your behalf.

Contact us today so we can begin working for you.