Frequently Asked Questions

In this section, we’ve gathered the most common questions applicants ask when it comes to business immigration to Canada, starting and managing a business, or resolving legal disputes.

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Why do well-structured legal contracts provide peace of mind and reduce risk in hiring?

A thorough, legal contract clarifies obligations, IP ownership, and termination terms, significantly reducing the risk of disputes, misunderstandings, and financial or legal liability.

How do employment and contractor agreements prevent disputes and misunderstandings?

By clearly defining roles, hours, compensation, benefits, and termination conditions, legal contracts document expectations and minimize conflicts between employers and workers.

How does the contract drafting process ensure legal enforceability?

Through initial consultation, customized drafting, and careful review, the final digital contract is ready for signature and fully compliant with provincial and federal regulations.

What are the advantages of using customized contracts reviewed by a lawyer?

Tailored contracts ensure:

Compliance with Canadian labor laws

Alignment with industry-specific needs

Legal defensibility in case of disputes

What key points should an independent contractor agreement include to mitigate tax and CRA risks?

The agreement must clearly specify:

Non-employee status

Scope of services

Payment terms

Ownership of project outputs

This helps avoid tax misclassification and CRA penalties.

What should an employment contract include to comply with Canadian labor laws?

A compliant employment contract should cover:

Base salary and benefits

Vacation and leave policies

Job description

Probation period

Legal compliance clauses

These must align with provincial and federal employment laws.

How do professional contracts legally and fairly set termination conditions in Canada?

Contracts clearly define termination conditions, notice periods, and statutory obligations to protect both the employer and employee, making end-of-employment processes transparent and enforceable.

How can employment contracts protect intellectual property and confidential business information?

Employment contracts with confidentiality and IP assignment clauses ensure that any ideas, content, or inventions created during employment remain the property of the company.

What’s the difference between an employment contract and an independent contractor agreement?

An employment contract covers salary, benefits, and statutory entitlements. An independent contractor agreement defines a separate tax and legal relationship. Misclassification can result in significant financial penalties and legal consequences.

Why is starting work with an employee or contractor without a written contract risky for my business?

Beginning a working relationship without a formal employment or independent contractor agreement can lead to legal disputes, financial claims, and misunderstandings. A written contract serves as your first line of defense against these risks.

Shekarian Law PC is a professional corporation licensed by the Law Society of Ontario. We provide strategic legal counsel to founders, investors, and companies building, expanding, and operating in Canada, including cross-border and regulatory matters.