7 Employment Contract Mistakes That Could Cost Your Restaurant Thousands
FREE Lawyer-Vetted Contract Template
Many restaurant owners spend more time picking a POS system than reviewing the employment contracts new hires sign. That gap can be expensive: Canadian courts have repeatedly struck down poorly drafted or outdated termination clauses, leaving employers on the hook for far more than they expected. Get a lawyer-vetted employment contract template, built specifically for restaurants across Canada (all provinces except Quebec), and stop relying on generic paperwork.
  • ​Built for restaurant roles: servers, cooks, bartenders & managers
  • ​Aligned with employment standards in your province
  • Drafted to help avoid unenforceable termination clauses
  • ​Helps prevent wrongful dismissal claims & costly payouts
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The 7 Mistakes Costing Restaurants Money

Before your next hire, make sure your paperwork isn't quietly working against you.

01

Signing after day one

Contracts signed once work has started may need new consideration to be enforceable.

02

Using an outdated template

Employment law shifts constantly — a contract that worked years ago may no longer hold up.

03

One contract for every role

Servers, cooks, and managers each carry different risks and need different language.

04

Missing key clauses

Hours, overtime, confidentiality, and workplace policies all 
belong in a complete agreement.

05

Assuming automatic probation

Probationary periods only apply if your contract clearly says so.

06

Unenforceable termination clauses

One non-compliant clause can invalidate your entire termination section.

07

Never reviewing contracts

Agreements need regular review as your restaurant — and the law — changes.
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Disclaimer

This template is current as of 1 January 2026 and was prepared by HR Covered Inc. for Canadian employers (all provinces except Quebec). It is provided for general information only and is meant to be a helpful starting point for restaurant employers and their teams — not legal or professional advice.

HR Covered Inc. is not responsible for any errors, omissions, or outcomes resulting from the use of this template, and is not liable for any loss or damage arising from reliance on the information provided. Before taking action, we recommend doing your own research and consulting an HR or employment law professional to ensure the information is appropriate for your specific restaurant and province.