Many employers wrongly assume they are safe just by following the Employment Standards Act. In reality, the gap between ESA minimums and common law severance can cost your business tens of thousands of dollars per employee. This guide breaks down the absolute essentials for protecting your company: why you need enforceable written contracts before the first day of work, the specific dangers of using outdated termination clauses, and the critical importance of documenting performance issues. We explain how a proactive legal strategy prevents minor HR headaches from exploding into six-figure wrongful dismissal lawsuits. Prevention is always cheaper than a courtroom defence.