Blog > Last Chance Agreement Ontario

October 7th, 2021

Last Chance Agreement Ontario: Understanding Your Options

Ontario employers face a range of challenges when it comes to managing their workforce. One of the most difficult situations to handle is when an employee has engaged in serious misconduct, but the employer still wishes to keep them on board. In these instances, a last chance agreement can be a useful tool.

A last chance agreement (LCA) is a contractual agreement between an employer and an employee that sets out specific terms and conditions that the employee must meet in order to avoid termination. Essentially, it is a second chance given to employees who have engaged in serious misconduct that would normally result in termination.

The purpose of an LCA is to allow employers to retain an employee while still ensuring that the misconduct is addressed and corrected. The agreement typically includes provisions such as a zero-tolerance policy for further breaches, a requirement that the employee undergo counseling or training, and a clear timeline for improvement.

In Ontario, LCAs are typically used in situations where an employee has engaged in serious misconduct, such as theft, violence, or harassment. The agreement is often seen as a more lenient alternative to termination, as it allows the employee to keep their job while still holding them accountable for their actions.

However, it is important to note that an LCA is not a guarantee that an employee will be able to keep their job. If the terms of the agreement are not met, the employer has the right to terminate the employee without further notice or compensation.

There are also important legal considerations to keep in mind when drafting an LCA. For example, the terms of the agreement must be clear and unambiguous, and the employee must voluntarily agree to the terms. In addition, the employer must ensure that the agreement is not discriminatory or in violation of any employment laws or regulations.

If you are considering using an LCA in your workplace, it is important to consult with a qualified employment lawyer to ensure that the agreement is legally sound and that your rights and obligations are fully explained.

Overall, a last chance agreement can be an effective tool for Ontario employers who wish to retain an employee while still addressing serious misconduct. By carefully crafting the terms of the agreement and seeking legal advice, employers can ensure that they are taking the appropriate steps to protect their business and their workforce.