Employment Agreement (Fixed Term) (British Columbia) by OLL
EMPLOYMENT AGREEMENT [FIXED TERM]
This template is for the direct employment of an individual in British Columbia for a defined term with a stated end date. It is employer-side: drafted to be offered by the Employer. This is not the indefinite-term template with an end date added — the early-termination exposure described below is unique to a fixed term. Not suitable for an independent contractor engagement (use independent-contractor-services), an indefinite role (use employment-full-time-indefinite), or a part-time role (use employment-part-time). Not suitable for use in Quebec.
Drafting notes appear in italics and are to be deleted before execution. Square brackets mark information to be filled in. Delete any inapplicable optional clauses and renumber before execution.
Do NOT reuse the Ontario version of this template. Ontario's fixed-term early-termination case law (in particular the appellate authority commonly cited for balance-of-term damages) is Ontario-specific and is not cited here. Section 13 is drafted against the general common-law principle applicable to fixed-term contracts and against the BC Employment Standards Act, R.S.B.C. 1996, c. 113 (the "ESA") directly.
⚠️ Ending a fixed term early without an enforceable clause can cost more than terminating an indefinite employee. This is a general common-law principle, not one specific to any province: a fixed-term contract, ended before its stated end date without an enforceable early-termination clause, can expose the party who ended it to damages measured by the wages and benefits that would have been payable for the remaining balance of the term, rather than reasonable notice. Whether British Columbia courts apply this the same way Ontario's appellate authority does — including on the availability of a duty to mitigate — is not confirmed here; I have not identified a BC authority in the registry I am confident enough in to state a settled rule, and I have deliberately not carried the Ontario case law over. Section 13 is drafted to reduce this exposure, but its effectiveness in BC has not been tested against a specific, verified authority.
⚠️ Termination-clause enforceability is uncertain and moving. The early-termination clause in section 13 must independently satisfy the BC ESA minimums. How strictly a BC court will construe an ambiguous or partially deficient termination clause against the Employer is not settled here. Have section 13 checked against the current leading BC authority before each significant use, and always before a term extending more than a year.
⚠️ Existing employees need fresh consideration. If this Agreement is being introduced to someone who is already employed, or an existing indefinite employee is being moved onto a fixed term, Canadian courts generally require the Employer to give the employee something of genuine value in exchange. Moving an existing indefinite employee onto a fixed term is itself a significant change that may carry its own constructive-dismissal risk. Take advice before doing this.
THIS AGREEMENT is made as of [Date].
BETWEEN:
[Employer Legal Name], [a corporation incorporated under the laws of [Province / Canada] / a sole proprietorship / a partnership] having its principal place of business at [Employer Address]
(the "Employer")
— and —
[Employee Legal Name] of [Employee Address]
(the "Employee")
(each a "Party" and together the "Parties")
WHEREAS the Employer wishes to employ the Employee for a fixed term, and the Employee has agreed to accept that employment on the terms set out below;
NOW THEREFORE in consideration of the mutual covenants below, the Parties agree as follows:
Position and Duties
The Employer employs the Employee in the position of [Job Title], reporting to [Title of Manager].
The Employee will perform the duties normally associated with the position of [Job Title], and any other duties reasonably assigned by the Employer from time to time, consistent with the Employee's skill and experience.
The Employee will devote their full working time and attention to the Employer's business and will not, without the Employer's prior written consent, engage in any other employment or business activity that conflicts with the Employee's duties to the Employer.
The Employee represents that entering into this Agreement and performing their duties will not breach any agreement or obligation the Employee owes to a third party.
Term, Renewal and Non-Renewal
This Agreement begins on [Start Date] and ends on [End Date] (the "Term"), unless terminated earlier in accordance with section 13.
On the last day of the Term, the Employee's employment ends automatically, without any further notice, pay in lieu of notice, or other payment, except any amount already earned and unpaid. Neither Party is required to provide notice of an intention not to renew.
Include if renewal is contemplated: The Parties may agree to renew this Agreement, or enter into a new fixed-term agreement, for a further term on terms to be agreed. Either Party may notify the other in writing, at least [Number] days before the end of the Term, of its intention not to offer or accept a renewal. Neither Party is obligated to offer or accept a renewal.
A pattern of repeated, back-to-back renewals or successive fixed-term agreements between the Parties, particularly where the work performed is ongoing rather than genuinely time-limited, may cause a court to treat the relationship as indefinite rather than fixed-term, regardless of how the Parties have labelled it. If that happens, an eventual non-renewal may be treated as a termination requiring notice under section 13, and clause 2.2 will not protect the Employer.
Clause 2.2 depends on the Term being genuinely fixed and not, in substance, an indefinite relationship dressed up as a series of terms — see clause 2.4.
There is no settled bright-line number of renewals or cumulative duration that converts a fixed-term relationship into an indefinite one in BC any more than in Ontario. If the Employer is contemplating a second or subsequent renewal of the same Employee, or the role has become ongoing, flag this clause and recommend a review before proceeding.
Hours of Work
The Employee's standard hours of work are [Number] hours per week, ordinarily scheduled as [Schedule], subject to the reasonable requirements of the position.
The Employee [is / is not] eligible for overtime pay under the ESA. Where eligible, overtime is paid in accordance with the ESA and the Employer's overtime policy.
Compensation
The Employer will pay the Employee a base salary of [Amount] per [year / month], payable [bi-weekly / semi-monthly / monthly], less applicable statutory deductions and withholdings.
Include if a discretionary bonus applies: The Employee may be eligible for a discretionary bonus of up to [Amount / Percentage], subject to the Employer's bonus plan then in effect and the Employee being actively employed and not under notice of termination on the payment date.
Vacation and Statutory Holidays
The Employee is entitled to [Number] weeks of paid vacation per year / the minimum vacation entitlement required by the ESA, whichever is greater, pro-rated for any partial year within the Term. Vacation pay is calculated in accordance with the ESA.
The Employee is entitled to statutory holiday pay in accordance with the ESA for each statutory holiday recognized under the ESA on which the Employee does not work.
VERIFY the current BC ESA vacation entitlement and vacation-pay formula before publishing.
Benefits
Include if the Employer offers group benefits: The Employee is eligible to participate in the Employer's group benefits plan, as it exists from time to time, subject to the terms of the plan and the approval of the insurer. Coverage ends on the earlier of the end of the Term and the end of employment under section 13, subject to any minimum continuation required by the ESA.
Business Expenses
The Employer will reimburse the Employee for reasonable, pre-approved business expenses properly incurred in performing the Employee's duties, on production of receipts and in accordance with the Employer's expense policy.
Workplace Policies
The Employee will comply with the Employer's policies and procedures, as amended from time to time and made available to the Employee. In the event of a conflict between a policy and this Agreement, this Agreement governs.
Confidentiality
"Confidential Information" means non-public information relating to the Employer's business that the Employee acquires in the course of employment, whether or not marked confidential, including business plans, customer and supplier information, pricing, technical information and personal information about the Employer's employees, customers or suppliers.
The Employee will keep Confidential Information confidential both during and after employment, use it only to perform their duties, and not disclose it to any third party without the Employer's prior written consent, except as required by law.
Section 9.2 does not apply to information that is or becomes public through no fault of the Employee, or that the Employee is required to disclose by law or by a court or regulator — provided the Employee gives the Employer prompt notice where lawful to do so.
Intellectual Property
All work product, inventions, designs, code, documents and other materials created by the Employee within the scope of their employment (the "Work Product") are owned by the Employer.
To the extent any Work Product is not automatically owned by the Employer by operation of law, the Employee assigns to the Employer all right, title and interest in it, including all copyright, effective on creation.
The Employee waives, in favour of the Employer and anyone claiming through the Employer, all moral rights in the Work Product.
Non-Solicitation
During employment and for [Number] months after the end of employment for any reason, the Employee will not directly solicit any employee of the Employer with whom the Employee had material contact during the last [Number] months of employment, for the purpose of employment elsewhere.
During employment and for [Number] months after the end of employment for any reason, the Employee will not directly solicit any customer of the Employer with whom the Employee had material contact during the last [Number] months of employment, for the purpose of providing services competitive with those of the Employer.
Section 11.2 does not prevent the Employee from responding to a general advertisement not directed at the Employer's customers.
This Agreement contains no clause restricting the Employee from working for, or starting, a competing business after employment ends. Unlike Ontario, British Columbia has no statutory prohibition on that kind of clause for a non-executive employee, so a narrowly drafted one may be enforceable in limited circumstances. Drafting one properly is fact-specific and is out of scope for this self-serve template.
Return of Property
On the end of employment for any reason, or earlier on request, the Employee will return all property, equipment, documents and Confidential Information belonging to the Employer, and permanently delete any copies in the Employee's possession or control that cannot be physically returned.
Early Termination
Early Termination by the Employer Without Cause
Option A — ESA minimum only
The Employer may terminate the Employee's employment before the End Date, at any time and without cause, on providing the Employee with the minimum notice of termination, or pay in lieu of notice, required under the ESA, calculated based on the Employee's length of service as of the date notice is given, together with any other payment or entitlement required under the ESA. This section is a complete statement of the Employee's entitlement on early termination without cause and, to the extent permitted by law, is intended to displace any claim to wages, salary or benefits for the remaining, unexpired portion of the Term. This Agreement provides no greater entitlement on early termination without cause than the ESA requires.
Option B — Enhanced contractual notice
The Employer may terminate the Employee's employment before the End Date, at any time and without cause, on providing the Employee with the greater of (a) [Number] weeks'/months' written notice, or pay in lieu of notice, and (b) the minimum notice of termination, or pay in lieu of notice, required under the ESA, calculated based on the Employee's length of service as of the date notice is given. This section is a complete statement of the Employee's entitlement on early termination without cause and, to the extent permitted by law, is intended to displace any claim to wages, salary or benefits for the remaining, unexpired portion of the Term.
In no event will the Employee receive, on early termination without cause, less than the Employee's minimum entitlements under the ESA.
Early Termination by the Employer for Cause
The Employer may terminate the Employee's employment before the End Date, at any time, without notice or pay in lieu of notice, for just cause.
Resignation by the Employee
The Employee may resign before the End Date on providing the Employer with [Number] weeks' written notice. The Employer may, at its discretion, accept the resignation effective immediately or at any point during the notice period, with pay in lieu of the remainder of the notice period, or may require the Employee to work through all or part of the notice period.
Constructive Dismissal
A significant, unilateral change by the Employer to a fundamental term of the Employee's employment — including compensation, position, reporting line, or work location — may, at common law, be treated as an early termination of the Employee's employment by the Employer, and may expose the Employer to the same balance-of-term risk described in the warnings above. Nothing in this Agreement is intended to authorize such a change.
Effect of Termination
On the end of employment for any reason, the Employer will pay the Employee all wages, accrued and unused vacation pay, and any other amount earned up to the date employment ends, together with any amount owing under section 13.1 or 13.3, as applicable.
Sections 9, 10, 11 and 15 survive the end of employment.
Section 2.2 already handles the ordinary end of the Term. This section deals only with ending the employment relationship BEFORE the End Date. Read the warnings at the top of this template before completing this section.
Use Option A if the Employer wants the Employee's early-termination entitlement capped at the ESA minimums. Use Option B if the Employer wants to offer a fixed, enhanced contractual notice period instead. Delete whichever option does not apply, and renumber.
The "displacement" language in clause 13.1 is intended to limit exposure to the stated notice rather than the balance of the Term. Whether BC courts will give effect to that language in every case is exactly the uncertainty flagged at the top of this template — confirm before every use that the chosen option does not fall below the ESA minimum for any point across the Term.
VERIFY the current BC ESA "just cause" exemption before relying on clause 13.3.1.
Check the surviving-section list against the final numbering after optional clauses are deleted.
Notices
Notices under this Agreement must be in writing and delivered to the address set out above, or to any other address a Party notifies in writing. Notice is deemed received on delivery if delivered personally or by email, or [Number] business days after mailing if sent by prepaid mail.
General
This Agreement is governed by the laws of the Province of British Columbia and the federal laws of Canada applicable in British Columbia. The Parties attorn to the exclusive jurisdiction of the courts of British Columbia.
This Agreement is the entire agreement between the Parties relating to the Employee's employment and supersedes all prior discussions, negotiations and agreements, whether written or oral, relating to that subject matter.
No amendment to this Agreement is effective unless in writing and signed by both Parties. Continued employment following a proposed amendment is not, by itself, acceptance of that amendment.
A failure or delay by a Party in exercising a right under this Agreement is not a waiver of that right.
If a provision of this Agreement, other than a provision within section 13, is held unenforceable, it is severed and the remainder of this Agreement continues in force.
This Agreement may be executed in counterparts and delivered electronically, each of which is an original and all of which together form one agreement.
Clause 15.5 excludes section 13 as a precaution given the enforceability uncertainty flagged at the top of this template.
IN WITNESS WHEREOF the Parties have executed this Agreement as of the date first written above.
[Employer Legal Name] | [Employee Legal Name] |
Per: ______________________ | Signature: ______________________ |
Name: [Name] | Name: [Name] |
Title: [Title] | |
I have authority to bind the Employer. |
Schedule A — Key Terms Summary
Complete this Schedule before execution. In case of conflict with the body of this Agreement, this Schedule is for reference only and does not override the body — resolve any conflict by correcting the Schedule to match the body.
Position: [Job Title]
Reports to: [Title of Manager]
Term: [Start Date] to [End Date]
Renewal contemplated: [Yes / No] — if yes, non-renewal notice: [Number] days
Standard hours per week: [Number]
Primary work location: [Address / Remote / Hybrid]
Base salary: [Amount] per [year / month]
Vacation entitlement: [Number] weeks per year
Early-termination notice option selected: [Option A — ESA minimum only / Option B — Enhanced: [Number] weeks/months]
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