The difference between a Job Offer and a Contract of Employment from a Canadian employer
When applying for work in Canada, the two terms Job Offer and Contract of Employment are often used. They differ, however, in important ways as to purpose, legal standing and content.
In the article below, Prosperous Living Investment examines and compares the difference between these two terms.
A recurring problem today is that foreign workers arrive in Canada through a broker, only to find on arrival that the employer knows nothing about it, or to be dismissed after a few days on inadequate grounds. In principle, the employer has done nothing wrong, because no Contract of Employment has been signed between the two parties and there is therefore no legal obligation.
Contents
What is a Job Offer?
Detailed article on thea job offer.
A Job Offer is a formal letter of invitation from an employer to a candidate, confirming that they have been selected for a particular position. Typically, once the steps in the recruitment process have been completed — reviewing applications, conducting interviews and selecting the candidate the employer wishes to work with — the employer sends the candidate a job offer to express its wish to work with them.
The main content of a job offer letter usually includes the following:
- The position
- The job description
- The basic salary and benefits
- The expected start date
- The work location
- The employer’s name and contact details
Points to note regarding a job offer:
- A Job Offer valid for the purposes of a visa or immigration to Canada must meet the requirements of theImmigration, Refugees and Citizenship Canada (IRCC)andEmployment and Social Development Canada (ESDC).
- Some job offers may require anLabour Market Impact Assessment (LMIA)to demonstrate that no suitable Canadian worker is available for the position.
Considering a residency programme? The Prosperous Living Investment team assesses your profile free of charge and advises on the pathway that fits your goals.
What is a Contract of Employment?
A Contract of Employment is a legally binding agreement between the employee and the employer.
A Contract of Employment has legal force, and both parties must comply with its terms as required by law. The main purpose of a contract of employment is to set out the rights and responsibilities of both parties in the employment relationship.
The main content of a Contract of Employment includes:
- Legal terms (compliance with Canadian employment law)
- The employee’s responsibilities
- The employee’s entitlements (insurance, benefits, leave, bonuses and so on)
- The term of the contract (fixed-term or indefinite)
- Conditions for terminating the contract
Points to note regarding a Contract of Employment:
- A lawful contract of employment must comply with the employment law of the province in which the work takes place.
- Khi xin A work permit, IRCC may require the worker to produce a contract of employment rather than a job offer alone.
The difference between a Job Offer and a Contract of Employment
| Criterion | Job Offer | Contract of Employment |
|---|---|---|
| Nature | Not legally binding | Legally binding |
| Purpose | Confirms the intention to hire | Establishes legal rights and obligations |
| Main components | Job title, salary, job description, work location | Sets out responsibilities, entitlements, benefits, contract term and conditions for termination in detail |
| LMIA required | An LMIA is required in some cases | No LMIA required |
| Mandatory to apply for a work permit | Not mandatory in every case | May be requested by IRCC |
When is a Job Offer needed, and when is a Contract of Employment needed?
A candidate and employer need a Job Offer if:
- Applying for a work visa underTemporary Foreign Worker Program (TFWP)orthe International Mobility Program (IMP).
- Applying to immigrate throughExpress Entry, where a job offer may help increase the scoreThe Comprehensive Ranking System (CRS).
- Seeking work in Canada but not yet having signed a formal contract of employment.
A candidate and employer need a Contract of Employment if:
- Working in Canada on an employer-specific work permit.
- The employer needs to demonstrate to IRCC that it complies with Canadian employment law.
- The company wishes to set out clearer terms on the rights and obligations of both parties.
Find out more about employment in Canada for foreign workers athere.
Frequently asked questions (FAQ) on the Job Offer and the Contract of Employment
No.A Job Offeris a letter of invitation from an employer to a candidate, expressing the intention to hire.A Contract of Employmentis a legally binding agreement between the two parties, setting out the rights and obligations of both the employee and the employer.
Not entirely. A job offer is only a preliminary commitment and is not legally binding in the way a contract of employment is. In some cases, however, a job offer may be used to apply for a work permit or a Labour Market Impact Assessment (LMIA).
Yes. Where a worker is formally employed in Canada, the employer must provide a contract of employment or a written agreement setting out the terms of employment in full.
You should verify the authenticity of the job offer by contacting theEmployment and Social Development Canada (ESDC)directly, or by checking the business details on the official Government of Canada website. If you discover fraud, report it to the authorities.
A job offer normally does no more than confirm that the employer invites the worker to work for them and that the candidate confirms they will take the job. The two parties have not, however, agreed the terms of their working relationship in legal terms, which are usually set out only in a contract of employment. In principle, therefore, the employer has not acted unlawfully.
Yes. Workers have the right to negotiate salary, benefits and working hours before signing a contract of employment. If any term is unclear, you should have a solicitor or an employment adviser review it before signing.
Accompanying you on your journey in residency investment
The Prosperous Living Investment team advises on pathways, assesses profiles and manages investments transparently for every residency, citizenship and international property objective.
Free profile assessmentWhere life gets prosperous