Not every employee in Ontario is being offered 15-year contracts, but if an agreement of that nature was made between an employee and employer, what would happen? The answer depends on a number of factors, not least of which is how the employee and the employer actually treated the agreement in practice. If the agreement went before the courts, however, there would be a question about its legality. Section 2 of the Employers and Employees Act provides that, “No voluntary contract of service or indenture is binding for longer than a term of nine years from the date thereof.”
The majority of employment contracts, however, are of indefinite duration, meaning that there is no term specified. In Hine v. Susan Shoe Industries Ltd., the Ontario Court of Appeal held that contracts of indefinite duration do not run afoul of the Employers and Employees Act.