https://achkarlaw.com/employment-contracts-in-ontario-what-you-need-to-know/
What If You Don’t Have A Written Employment Contract?
If an employee commenced employment without signing a written employment contract, the employment relationship will be governed by an implied verbal employment agreement. The employee will remain entitled to the minimum entitlements set out in the Employment Standards Act, and any other representations made by the employer regarding the employment. Given the terms are not in writing, such an employment contract leaves open the possibility for either side to dispute what the terms are to begin with should a disagreement arise. If an employment-related matter goes to court, the terms of the agreement may have to be determined by a Judge based on the credibility of the parties, which means neither side’s interpretation is guaranteed to be taken as correct.
The greatest risk involved with a verbal employment agreement comes with the dismissal of an employee’s employment. A verbal employment agreement will automatically entitle an employee to common law reasonable notice in the event of a without cause dismissal. Common law reasonable notice can be significantly higher than the notice entitlements found in the Employment Standards Act, and as such can end up very costly for an employer.