In Ontario, return of service agreements are becoming increasingly popular among employers as a means of protecting their investment in their employees. These agreements require employees to commit to working for a specific period of time in exchange for the employer’s investment in their training, education, or other resources. However, there are several legal considerations that employers must keep in mind when implementing return of service agreements.

Firstly, employers must ensure that the agreement is reasonable in terms of both duration and scope. The agreement should not be overly restrictive or unfairly limit the employee’s future employment opportunities. As a general rule, the agreement should not exceed the length of time that it takes for the employer to recoup the costs of their investment in the employee.

Secondly, employers should ensure that the agreement is clear and unambiguous. The terms of the agreement should be communicated to the employee in a way that is easy to understand and unambiguous, ensuring that both parties are clear on their rights and obligations.

Thirdly, employers must ensure that the agreement is enforceable under Ontario law. Return of service agreements must comply with the Employment Standards Act and be in accordance with common law principles. Employers should seek legal advice to ensure that their agreement is enforceable and that they are not inadvertently violating any laws or regulations.

Finally, it is important for employers to consider the potential impact that a return of service agreement may have on their employees’ morale and job satisfaction. While such agreements can be an effective means of protecting the employer’s investment in their employees, they can also create feelings of resentment and discourage employees from pursuing further education or training.

In conclusion, return of service agreements are a useful tool for employers in Ontario to protect their investment in their employees. However, employers must ensure that these agreements are reasonable, clear, enforceable, and carefully considered in terms of their potential impact on employees. With careful planning and consideration, employers can implement return of service agreements that are both effective and beneficial to their organization.