Employee Handbooks and Policies: Are They Binding?

Employers use handbooks and policies to set rules on conduct, vacation, technology, harassment and more. Some are required by law, such as workplace violence and harassment policies.

Rules vs contract terms

• Workplace rules: dress codes, safety rules, IT use, scheduling procedures. Employers can usually change these with notice.
• Contract terms: pay, benefits, termination entitlements, non-competes. Changing these usually needs agreement.

Fresh consideration

Courts in Ontario have held that new terms imposed on an existing employee, without anything new in exchange, may be unenforceable.

Signing an acknowledgment

Signing that you received a handbook isn't always the same as agreeing to every term. Read what you are signing.

The ESA always applies

No policy can give you less than the Employment Standards Act minimums.

Before you sign

• Ask what has changed.
• Ask for time to review it.
• Get advice if termination, non-compete or pay terms change.

Sources

• Employment Standards Act, 2000
• When a termination clause is not enforceable (NEO guide)

Read next: Workplace Harassment Investigations: What to Expect

General Ontario legal information, not legal advice for your matter, and reading it does not create a retainer. Sources checked 16 October 2026: check the current law, forms and dates before you act.

Photos from Unsplash: Red books stand on a shelf in the library · a row of books sitting on top of a shelf.

This article is general information for people in Ontario, not legal advice. Rules, forms and deadlines change, and every situation is different. Check the current rule or speak to a licensed legal professional before you act.