Canadian Veterinary
Medical Association
L’Association canadienne
des médecins vétérinaires
CVMA Members Complimentary
CVMA Non-Members $75
www.canadianveterinarians.net
www.animalhealthcare.ca
Guidelines for the
Successful Employment of
New Veterinary Graduates
This booklet is for the exclusive use of CVMA members
Acknowledgments
The Canadian Veterinary Medical Association (CVMA) extends its
sincere appreciation to all those who contributed to the formulation of
the Guidelines for the Successful Employment of New Veterinary
Graduates.
The guidelines were developed by Dr. Diane McKelvey with assis-
tance and guidance from a CVMA advisory group composed of:
Dr. Diane McKelvey, Chair Dr. Robert Ashburner
Dr. Joanne Best Dr. Keith Campbell
Dr. Jay Cleroux Dr. Chip Coombs
Dr. Peter Fretz Dr. Katryna Garrett
Dr. Walter Ingwersen Mr. Douglas D. Jack
Dr. David Kirby Dr. Nigel Gumley
Dr. Duane Landals Dr. Mark Lawrence
Dr. Alex McIsaac Dr. Brent Matthew
Dr. Don Pulfer Dr. Bernhard Pukay
Ms. Shanna Ryan Dr. Brigitte Rochette
Dr. John Tait Dr. Elizabeth Spangler
The guidelines were finalized after consultations with every provincial
veterinary association and with more than 150 individual veterinarians
across Canada.
The CVMA thanks all who contributed for their input.
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Table of Contents
1. Purpose of the Guidelines.....................................................1
2. Strengths and Weaknesses of New Graduates ......................2
3. Responsibilities of Associates and Employers......................4
– Responsibilities of the Associate .......................................4
– Responsibilities of the Employer.......................................5
4. Supervision and Case Management......................................7
5. Interaction with Staff............................................................9
6. Compensation.....................................................................11
– Method of Compensation ................................................11
– Remuneration ..................................................................12
7. Hours of Work ....................................................................15
– Regular Hours .................................................................15
– Allocation of After Hour and On Call Duties ..................18
– Payment for After Hour Calls..........................................19
8. Days of Work......................................................................21
– Statutory Holidays...........................................................21
– Vacation...........................................................................21
– Sick Leave and Other Absences ......................................22
– Maternity/Paternity Leave ...............................................23
9. Professional Benefits..........................................................24
– Continuing Education......................................................24
– Malpractice Insurance .....................................................25
– Licensing Fees.................................................................26
– Other Professional Fees...................................................27
10. Vehicle Benefits................................................................28
11. Other Benefits...................................................................30
– Medical/Dental Plans.....................................................30
– Disability Insurance.......................................................30
– Pension ..........................................................................31
– Clothing Allowance .......................................................31
– Workers Compensation..................................................32
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12. Benefits for Part-time Employees
and Self-employed Veterinarians......................................33
– Part-time Employees .....................................................33
– Self-employed Veterinarians..........................................33
13. Non-competition Agreements...........................................35
14. Performance and Salary Reviews .....................................36
15. Termination of Employment.............................................38
– Employer Terminates Employment ...............................38
– Employee Terminates Employment ...............................39
16. Animals Belonging to Employees ....................................40
17. Community/Volunteer Activities ......................................42
18. Practice Philosophy and Policies......................................43
19. Employment and Associate Agreements...........................44
Appendix A - Sample Employment Agreement ......................47
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1. Purpose of the Guidelines
These guidelines are intended to summarize current employment
conditions for newly graduated veterinarians working in Canadian
veterinary practices. The guidelines were assembled in consultation
with practice associates, practice owners, and veterinary students
across Canada.
The purpose of the guidelines is to offer a framework of
discussion for practice owners and for veterinarians seeking
employment. It is not the intention of the CVMA to set up
uniform standards for practice owners or for their associates. It is
unreasonable to expect any given recommendation to apply to
every veterinary practice in Canada, considering the wide varia-
tions that exist in practice philosophy, personal expectations and
preferences, practice location, and economic conditions.
Although the guidelines are primarily intended to apply to
newly graduated associates and their employers, some of the infor-
mation may also be applicable to more experienced associates.
It should be noted, however, that working conditions (particularly
remuneration and benefits) may be significantly different for expe-
rienced associates, in comparison to newly graduated veterinarians.
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2. Strengths and Weaknesses
of New Graduates
New graduates have much to offer a veterinary practice. They are
enthusiastic about veterinary medicine, and most are eager to learn
in a practical setting after long years of university education. They
bring new ideas and a fresh point of view to the practice. From their
experience at veterinary school, external rotations, and summer
employment, they have acquired information on diagnostic tests and
treatment protocols that may be new to the established practitioner.
They can, therefore, teach as well as learn, and their inquisitiveness
can help established practitioners re-examine their justifications for
their own treatments. Most new graduates have not yet developed
bad practice habits and their standards are high; their physical
examinations are usually thorough and their record-keeping skills
are excellent. They are motivated to work hard and most are flexible
and willing to adopt the practical attitudes that are necessary for
successful practice. From the practice owner’s viewpoint, the gradu-
ate has the potential to become a valued long-term employee, and a
possible future partner.
New graduates also have several weaknesses which must be
taken into consideration by their employers. Their chief weak-
ness is inexperience, not only in surgery and medicine, but also
in business, communication, and case management. Technical
skills, especially surgical techniques, require practice for speed
and expertise to develop.
Although students have a wealth of academic knowledge,
some have difficulty in applying knowledge to every day situa-
tions. It may be difficult for an idealistic new graduate to adjust
to the change from a teaching hospital to the reality of private
practice, including the cost limitations imposed by clients. Most
have little past exposure to the importance of marketing and
relaying the value of their services to clients. Many new gradu-
ates lack confidence in their abilities and have difficulty making
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decisions and making recommendations to clients. Others may
have a tendency to work up simple cases excessively, despite the
fact that more practical methods may produce similar results.
Some may find the challenge of a new career (particularly one as
stressful as veterinary practice) almost overwhelming at first.
It is a common belief that the average new graduate is
unlikely to generate adequate revenue to offset the cost of their
employment (salary and benefits) for at least the first 6 months
of practice. Most employers are willing to work through this
initial period provided the new employee shows a high level of
commitment to the practice.
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3. Responsibilities of Associates
and Employers
The relationship between a practice owner and an associate veteri-
narian is a complex one, with significant responsibilities on both
sides. Some of these responsibilities can be outlined in an employ-
ment agreement, which is signed before the employment begins
(see section 19). Other issues, such as care of the employee’s animals,
are not normally outlined in a employment agreement but should be
discussed and agreed upon in advance. Once the issues are outlined
in an employment agreement, they are not re-negotiated until the
agreement expires, except with the consent of both parties (or as
outlined in the agreement).
Underlying all of these issues, however, are a basic set of expec-
tations for each party in the employer-employee relationship:
Responsibilities of the Associate
Before seeking employment in private practice, the new graduate
must realistically assess his or her career needs and interests, and
consider whether this type of career is likely to produce adequate
job satisfaction. The associate veterinarian should endeavor to
commit to their first job for at least 12 months unless unforseen
circumstances arise or the employment conditions are untenable.
The associate is expected to behave in an ethical and professional
manner towards colleagues, staff, clients, and patients. This includes
not only knowledge and skill, but politeness, honesty, loyalty, adapt-
ability, courtesy, and compassion. The associate will not automati-
cally command respect from clients and clinic staff, but must earn it
by presenting a professional image, and exhibiting professional
behaviour as well as competence.
The associate should be willing to work under the conditions
agreed upon in the employment agreement (verbal or, preferably,
written) including hours and compensation.
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The associate is expected to be punctual and present a neat
and professional appearance.
The associate is expected to bring new knowledge into the
practice and to share it with others.
The associate should also feel comfortable in asking for
support when required. He or she should be prepared to learn
and improve in those areas where experience and competence
are lacking, and should be aware that this may require work
outside of normal clinic hours.
The associate is expected to adapt to the practice philosophy
and protocols and orient him- or herself to current practice goals,
including profitability of the practice. The new graduate must
realize that the practice owner has spent considerable money,
time, and effort, in establishing a practice that provides employ-
ment for the associate and others.
The associate is expected to communicate his or her concerns
to the managing veterinarian or practice owner, either on an
informal basis or as part of a scheduled performance review.
The associate is expected to treat all patient records and finan-
cial information as confidential, unless a legal or moral require-
ment for reporting exists (as in the case of reportable disease or
animal abuse). Clients or patients should not be the subject of
discussion outside of the practice. Records, radiographs, and
client lists are the property of the practice and their removal
without the employer’s permission is unethical and illegal.
Responsibilities of the Employer
The practice owner must thoughtfully ascertain whether or not
the practice has the resources to appropriately support a new
graduate, and whether the veterinarians in the practice have the
desire to expend the time and effort necessary to continue the
training of a new graduate. The employer must also ensure that
the practice can offer a sufficient workload for the new graduate.
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The practice owner has an obligation to provide a safe work-
place and to provide all employees with the necessary tools,
uniforms, and equipment, for performing the job. (Associates
may wish to provide their own stethoscope and similar items
in the interest of comfort and hygiene).
The practice owner must comply with the conditions specified
by the employment agreement (verbal or, preferably, written)
including hours of work and compensation.
The practice owner should exhibit ethical and professional
behaviour towards their associate. Associates are colleagues as
well as employees, and should be treated with respect and fairness.
The practice owner is expected to provide advice and super-
vision to their associates. They are encouraged to share their
knowledge and experience, and also to be willing to listen to,
and learn from, the new associate. The practice owner should
offer the new associate the opportunity to expand their abilities
by taking on challenging cases, and to develop new skills with
appropriate encouragement and supervision.
The practice owner is expected to communicate their concerns
to the associate. This can be done on an informal basis, or as part
of a scheduled performance review (see section 14).
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4. Supervision and
Case Management
Although a licensed veterinarian is legally permitted to practice
without supervision immediately following graduation, most
newly graduated associates benefit from supervision and assis-
tance from a more experienced practitioner during the initial
months of employment. Although there is some variation in the
need for support depending upon the background, experience, and
abilities of the new graduate, it is advisable that another veteri-
narian be available for consultation during the first few months of
employment. The experienced veterinarian may need to be physi-
cally present in the clinic, or available by telephone, or simply
provide feedback on a regular basis, depending on the circumstances.
As both the associate and supervising veterinarian gain confi-
dence and become comfortable with the new associate’s role,
the associate is encouraged to undertake a greater variety of
tasks with less supervision. Ideally, the new associate should
have the support that he or she feels is necessary, and the super-
visor should feel comfortable with the level of independence
that the new associate is given. After the initial training period,
most associates do best if they are given a reasonable degree of
independence. Each veterinarian practices medicine a little
differently, and the new graduate needs freedom and support to
define their style. The practice owner can encourage and
support this growth, for example, by asking what drugs the new
associate prefers to use that the practice doesn’t currently stock.
Provision must be made for the new graduate to learn new
procedures (for example, orthopedic surgeries). Ideally, the new
graduate needs to know that it is acceptable for him or her not to
be technically competent at all skills immediately after graduation,
and that the practice has a responsibility to nurture their skills.
The new graduate must be open and honest with regard to their
limitations in skill, knowledge, and experience. The supervising
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veterinarian must ensure that the new associate is not rushed or
unduly pressured when they work on their own, and that ample
technical support is available. The new graduate should not be
pushed to stretch the limits of patient safety. On the other hand,
if the new graduate always stays in their total comfort zone, he or
she will not progress.
Performance reviews, “rounds” for case discussion, and infor-
mal feedback sessions are helpful to both the supervisor and the
new associate. Even seasoned practitioners appreciate the oppor-
tunity to discuss interesting cases with other veterinarians, and
welcome the input that they provide. Feedback should also extend
to workplace concerns. If the supervisor is accessible and non-
judgmental, the associate will feel more comfortable approaching
him or her with concerns. A new associate should be able to voice
an opinion without worrying excessively about the response of
the practice management.
It is easy for a new associate to become discouraged when
clients ask to see the veterinarian with whom they are most
familiar. However, this is a normal part of practice and should
be viewed with patience. In time, the new associate will be the
“preferred choice” of some clients.
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5. Interaction with Staff
When a new associate joins the practice, he or she must develop a
cordial relationship with the practice staff. Generally, the new asso-
ciate wishes to be liked, respected, and trusted by the staff members,
and the staff members want the same from the new veterinarian.
Establishing this relationship is not always an easy process.
The new associate who is eager to introduce new methods to the
practice may find that the technicians and other staff are initially
unenthusiastic in following his or her instructions, particularly if
they differ from established procedures at the practice. To the staff
members, the new graduate may appear overbearing and unaware
that the staff may be more technically competent at certain proce-
dures than the new graduate (positioning for x-rays, drawing blood
samples, placing IV catheters, etc.) Disputes can arise which lead
to bad feelings and inefficient patient care. Occasionally, a new
associate may try too hard to befriend staff members, leading to
problems in discipline and possible favoritism.
Problems of this nature can be largely avoided by preparing both
the new associate and the staff ahead of time. It is helpful if the
practice owner and other veterinarians inform the staff in advance
that a new associate is coming, and encourage the staff to support
the new associate and be open-minded in evaluating the changes in
procedures that the new associate suggests. Staff members are
influenced by the practice owner’s attitude; if the owner supports a
new associate who is doing a procedure in a different way, the staff
is also likely to be supportive. Staff members with particular exper-
tise in skills such as endotracheal intubation and venipuncture
should be encouraged to work with the new graduate to help them
improve their skills in these areas.
On the other hand, the new associate must recognize that he or
she needs the support of the staff. Before suggesting radical
changes, the associate should take time to study the dynamics of
the practice and the job each staff member does. It is usually most
effective to start by asking questions on how things are usually
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done, and then to suggest that a procedure may be done in a
different way. Suggestions for change should be made with sensi-
tivity and diplomacy. Major changes should be discussed with the
practice owner prior to involving staff.
If problems with authority arise, the practice owner must
address them. Job descriptions and expectations must be clearly
outlined and the focus placed on a team approach; each person
should use their skills cooperatively to ensure the best outcome
for the patient and the practice. The new graduate should be
willing to fit into the needs of the practice, and bear in mind that
veterinarians may on occasion be called upon to assist the
support staff in routine tasks (for example, clean a kennel, mop
up a spill, or walk a dog).
Although personality conflicts may arise, most disagreements
can be resolved provided that communication is encouraged,
and both parties are willing to be flexible and respectful of the
other’s viewpoint.
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6. Compensation
Method of Compensation
Veterinary associates who are full-time employees can be paid in
one of three ways:
1. Straight salary
2. Base salary plus a percentage of their gross earnings or billings,
often paid as a quarterly bonus
3. Income based solely on a percentage of the associate’s gross.
The percentage chosen varies between 20% and 25% for small
animal practice, and may be higher for large animal practice.
The gross in this case is usually the fee billings of the associate
(not including taxes). Some practices adjust the gross to reflect
what was actually paid, rather than the amount billed. Certain
income sources may be excluded such as repeat retail sales, large
animal drug sales, and boarding charges, but in this case, the
percentage paid is usually adjusted upwards.
It is customary for new graduates to be paid a straight salary in
their first year of employment, rather than being paid on a percent-
age basis. Payment on the basis of production is more common for
associates with 1 or more years of experience. Payment on the
basis of production is difficult to justify for new graduates because
the veterinarian is not fully trained (therefore not all of their work-
ing time is productive) and the client load is often light (as the
associate is new to the practice). The result is that the associate’s
need for an adequate income may initially exceed their productiv-
ity. Another problem associated with payment on the basis of
production is the potential for competition between veterinarians
to handle cases that are likely to generate significant income.
However, some practices choose to compensate associate veteri-
narians partially or solely on the basis of production. Recent surveys
of associate incomes indicate that persons compensated on the basis
of production have higher incomes on average than those on straight
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salary. Whichever method is chosen, it is important that all parties
concerned have a clear understanding of what services are included
(for example, sales of pet food and other low markup items may not
be included in the gross) and whether the associate is required to
perform activities that do not generate revenue, such as practice
management or marketing.
Some practices pay straight salary but tie bonuses or
increases in compensation to the amount of revenue generated
by the practice. The practice may set up a bonus scheme such
that if a financial target is achieved after one year, associate
veterinarians receive a bonus of 5 to 10% of their wage.
Regardless of the method of payment, it is customary to pay the
associate’s salary every 2 weeks or semimonthly. Some practices
pay monthly and give an advance on the 15th of the month, equal
to approximately half of the monthly salary. With this method, the
employee is paid twice monthly but taxes, Canada Pension Plan,
employment insurance, and other deductions need only be calcu-
lated once monthly.
Remuneration
Few issues are as potentially contentious as remuneration.
Many factors must be considered before agreement on remuner-
ation can be reached, including the following:
•
Geographical location of the practice. Higher remuneration is
justified in areas with a higher cost of living (for example, large
urban centers).
•
Number of hours of work required. Associates who work more
hours than average should be paid accordingly.
•
On call duties (See Section 7)
•
Special qualifications of the employee. Associates that have obtained
special training (for example an internship) may be offered a wage
that is higher than the average.
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• Responsibilities of the associate. Associates who perform
managerial functions may be compensated with higher salaries.
•
Length of time with the practice. It is reasonable for compensa-
tion to increase after one year of employment (see Section 14 for
information on salary review).
•
Benefits offered by the practice. Some practice owners offer higher
salaries with few benefits, whereas other practice owners offer
lower salaries but more generous benefits. A position that offers a
salary of $45,000 with minimal benefits may be equivalent to a
position that offers a salary of $40,000 plus continuing education,
payment of licensing fees, a medical/dental plan, or other signifi-
cant benefits.
One advantage of the high salary/few benefits option is that it
allows the associate to choose the benefits he or she wishes to
have. This may be advantageous if, for example, the employee
is already covered by their spouse’s medical or dental plan.
There are several taxation issues that can arise, depending upon
the method of compensation. Three examples are given below.
1. Employees working in practices that offer comprehensive benefits
may be required to pay tax on some benefits. If the practice pays for
benefits such as licensing fees and continuing education, the prac-
tice can claim these expenses as deductions from its taxable income.
The employee, on the other hand, may be required to declare some
benefits as income, subject to income tax. These benefits are termed
“taxable benefits”.
2. Employees that pay for their own benefits may not be able to
claim all benefits as deductible expenses. The employee in this
case may be paying for his or her own license, continuing educa-
tion benefits, and other expenses. The licensing fee can be claimed
as a deductible expense, but the employee should seek an accoun-
tant’s advice as to whether the other expenses can be claimed.
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3. The practice owner usually provides few or no benefits for self-
employed veterinarians. Self-employed veterinarians normally
pay for their own business-related expenses, which can then be
claimed for income tax purposes.
It is advisable that the new graduate discuss these and other
taxation issues with an accountant (as they pertain to the job
that has been offered) before signing an employment agreement.
When a salary figure is offered, it is helpful to inform the prospective
associate what the approximate take home pay will be after income tax,
employment insurance, Canada Pension Plan, and other deductions.
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7. Hours of Work
Regular Hours
The issue of working hours should be carefully discussed by
the practice owner and the prospective associate before hiring.
This area is prone to misunderstandings which can ultimately
lead to disagreement and disillusionment for both parties.
Provincial standards of employment generally define a
normal working day as 8 hours (not including a lunch break)
and a normal week as 40 to 44 hours. However, most provincial
employment standards exclude veterinarians and other profes-
sionals from overtime provisions. (Depending on the province,
veterinarians and other professionals may also be exempt from
provisions for hours of work, statutory holidays and paid vaca-
tion). The rationale is that these professionals are in a vocation
that goes beyond any notion of a “regular work day.” It is inap-
propriate for associate veterinarians to keep close track of extra
hours in expectation of exact payment, just as it is inappropriate
for a practice owner to make note of the exact time when an
associate leaves the hospital at the end of the day. The new
associate needs to recognize that veterinary practice is not a
profession for a person who desires a “9 to 5” job, and the prac-
tice owner needs to recognize that the associate has a right to
adequate leisure time.
An attempt should be made to provide some structure to the
associate’s work week, and at the same time allow for catch up
time and adequate time off. This may mean, for example, that the
associate is scheduled for 30 hours of appointments and surgery
per week, recognizing that the work week will quickly rise to
40 hours or more when phone calls, discharges, and treatments
are added in, and even higher if on call duties are expected. If at
all possible, the associate should not routinely work more than
10 hours per day, especially if on call after hours. Because of the
seasonal nature of veterinary practice, however, it is inevitable
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that longer hours may be required at peak periods. It should also
be recognized that it may be necessary for the associate to work
occasional extra hours in order to learn new skills. New associ-
ates should be willing to come in early or stay after hours if
another veterinarian is willing to demonstrate complex surgeries
or medical procedures at that time.
Some employers may require the employee to work a split
shift (for example, 4 hours in the morning and 4 hours in the
late afternoon). If so, this expectation should be made clear
before employment commences. Although split shifts may be
convenient for the practice, they are difficult for most employ-
ees to work. There is a tendency for employees to stay at the
clinic between shifts to make phone calls and care for hospital-
ized patients, the end result being that the employee actually
works a 12 hour day. As with other issues, it is important that
both the practice owner and associate be as honest and as flexi-
ble as possible with regards to their expectations.
It is important that new associates realize that it is not possi-
ble to guarantee a regular lunch break each day. Most practices
attempt to avoid booking appointments during the lunch break,
but it is impossible to control what comes through the door at
15 minutes before noon. The realities of patient care demand
that lunch be postponed or even missed on busy days, but also
that a longer lunch break may be available on a slow day.
Employees who routinely work longer than 5 hours without a
break, or routinely work long after regular hours, may have diffi-
culty in continuing to function in a pleasant and efficient manner.
It is important that the supervisor monitor the workload and sched-
ule of the employee and ensure that the employee is not over-
loaded. If the new associate is routinely working through their
lunch break or after hours, it may be advisable to re-examine the
scheduling procedures or the way in which the associate is orga-
nizing his or her time. On the other hand, it is reasonable for new
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graduates to show some flexibility when it comes to occasionally
working into their lunch breaks (or after hours) as the need arises.
The need for after hours work varies among practices, depend-
ing on the availability of other facilities that handle emergency
work or intensive care, the number of veterinarians in the prac-
tice, the way appointments are scheduled, the availability of tech-
nicians and other staff members to do treatments after hours, and
the general philosophy of the practice. In many practices, new
associates are expected to make themselves available for some
after hours work when it is necessary for patient care. This may
include treatments on Sundays and holidays, staying late on busy
days, “on call duties” (see p.18) and night treatments for critically
ill hospitalized animals. If the practice owner expects that a new
associate will be called upon to do after hours work, this expecta-
tion should be made clear before the start of employment. An
estimate of the weekly hours of work should be provided to the
associate prior to starting the job. It is not common for veterinari-
ans to be paid overtime wages for after hours work (except for on
call emergencies, discussed below). However, if the associate is
expected to work significantly more than the 40 hours per week,
this should be reflected either in the salary offered, bonuses, or
commission paid, on work done after hours, or in extra time off.
If the new associate has obligations that prevent after hours work
(for example, child care responsibilities), these should be outlined
to the prospective employer before employment commences.
Both the practice owner and the associate veterinarian should
attempt to be as flexible as possible in coming to an agreement
that is fair to both and does not cause unnecessary hardship to
either party. Often it is difficult to know in advance the amount
of after hours work that will be necessary, and, it is therefore
advisable that this issue be discussed at the 3 month performance
review (see Section 14).
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Allocation of After Hours and On Call Duties
Division of after hours and on call duties are among the most
contentious of all issues facing the practice owner and the asso-
ciate. It is customary for every full-time veterinarian to make a
contribution to the after hour needs of the practice. Many prac-
tices choose to split the duties equally between all veterinarians
working in the practice, in the interests of avoiding animosity.
Treatments and on call duties for evenings, weekends, and holi-
days can be allocated on a rotating basis. In some practices,
the owner may wish to work less than an equal share of hours.
This expectation must be communicated clearly to the new
associate before hiring and the new employee must be agreeable
to this method of allocation. Some method of remuneration
(for example, extra time off or payment for being on call)
should be provided to the associate as compensation for the
additional share of on call duties.
There is a need for ongoing dialogue regarding the distribu-
tion of after hour work, as personal situations and preferences
may change. Informal agreements to trade nights and weekends
on call are helpful in allowing each veterinarian to attend family
events and allow for other special circumstances.
With regards to on call duties, there should be clear agreement
on the following items:
• The veterinary practice should supply a pager or a cell phone for
the use of the veterinarian on call. It is unreasonable to restrict
the mobility of the person on call, although he or she is expected
to attend to emergencies punctually.
• If the practice provides a cell phone, its use should be restricted
to work-associated calls unless there is an agreement that the
associate pays for personal use.
• Consumption of alcohol while on call should be prohibited.
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• A backup veterinarian should be available (by phone or in person)
to assist the new graduate with emergency calls during the first
few months of employment.
Payment for After Hours Calls
The vast majority of practices provide extra remuneration for
associates attending after hour emergency calls. There is vari-
ability among practices in the manner of compensation for
Sunday/holiday treatments or after hours work on busy days.
There are several ways to compensate associates for
after hour duties:
• Pay a stand-by fee for being on call. Typically, this is equivalent
to two hour’s wage (approximately $50) for each night the veteri-
narian is on call. Sunday and holiday call may be compensated at
a higher rate.
• Pay an after hours call fee for each patient seen after hours
(typically $30 to $50 before midnight, higher for calls after
midnight). This fee usually corresponds to the after hours
charge that is added to the client’s bill.
• Pay a percentage of the professional fees generated by calls
seen after hours (commonly, 25% if the after-hours call fee is
also included; 30-35% if not). It is important to establish in
advance whether this includes fees for treatment of the animal
if the case goes into the next work day, or if this includes only
the fees for the after hours care.
• Offer time off in lieu of remuneration.
• Pay a higher base wage but no compensation for emergencies
attended. The amount of wage premium will depend upon the
number of hours on call, and the number of emergencies the
associate is likely to attend. An annual figure of $5000 to
$10,000 is not unreasonable for a practice that has a busy after-
hours service. The disadvantage of this arrangement is that there
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is little incentive for the veterinarian to attend an individual
emergency case, as there is no fee per service. Before agreeing
to an arrangement of this type, the associate should be provided
with a reasonable estimate of the number of emergency calls
that can be expected, based on past history of the practice.
Some practices utilize a combination of the methods listed
above. The particular method of compensation should be
agreeable to both the practice owner and the associate, and
should be high enough to make the employee feel positive about
attending after hours calls.
Veterinarians living in areas without emergency clinics may wish
to consider a cooperative sharing of on call duties with neighboring
practices, to decrease the stress on associates and themselves.
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8. Days of Work
Statutory Holidays
Arrangements for work on statutory holidays vary widely
between practices. Some practices remain open and fully staffed.
Other practices close but offer emergency service. Some practice
areas are served by emergency clinics and on call duties may
not be required. Most practices make provision for a veterinarian
and/or veterinary technician to perform treatments on hospital-
ized animals.
Treatment and on call duties are normally performed on a
rotating basis by all veterinarians working in the practice.
Other arrangements may be workable, provided all the veterinari-
ans agree on the scheduling arrangement and extra compensation
is available for those who do more than an equal share of duties.
Veterinarians are normally exempt from employment stan-
dards legislation providing for statutory holidays, and, therefore,
no additional pay is required by law. If the associate works the
equivalent of a full day extra (either on a holiday, or day off, or
after hours) it is fair to compensate the associate either monetar-
ily or by providing an alternate day off.
If an associate’s day off falls on a statutory holiday, most
practices allow an extra day off, although not necessarily the
day after the holiday.
Vacation
Veterinary associates are entitled to vacation at the end of one year
of employment. If their employment ends before that time, they
are entitled to 4% vacation pay.
Most practices offer 3 weeks of vacation per annum for their
newly graduated associates. The timing of the vacation leave is
restricted in some practices: many do not allow vacation leave
during the first 6 months of employment, and some practices do
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not allow vacation leave during busy months of the year
(for example, calving season in a large animal practice, or during
heartworm testing season in a small animal practice). The vaca-
tion should be scheduled in periods of one or more weeks unless
the associate requests otherwise. It is customary for vacation
time to be used entirely each year (or holiday pay given) with no
banking permitted.
If the associate wishes to take extra time off, some practices will
allow a leave of absence without pay, whereas others allow the
associate to take time off as compensation for after hours work.
Sick Leave and Other Absences
Provincial employment standards do not require paid sick leave
for employees. Many practices do not pay for sick days, although
unpaid time off is taken as needed. Alternatively, associates may
use vacation time (in which case the leave is paid).
Some practices allow a limited number of paid sick leave
days per year (6 days annually is average). In most cases, these
cannot be carried forward if they are not used. Some practices
allow a portion of unused sick leave (often 50%) to be taken as
time off at the end of a year’s employment.
Some practices allow a limited number of days leave for
bereavement (funeral) leave, or family emergencies, or care of
immediate family members that are ill. A total of 4 days annu-
ally is average. This leave is normally unpaid, unless the associ-
ate can make up the time at a later date, use vacation days, or
use days allocated for paid sick leave.
As these examples indicate, there is a great deal of variation
between practices in how issues such as compassionate leave,
sick leave, and family sick leave are handled. The issue should be
discussed by the practice owner and associate before entering into
an employment agreement. Many practices do not have a firm
policy on these issues, and prefer to negotiate an agreement as
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circumstances arise. Ideally, common sense, flexibility, compas-
sion, and “the golden rule” should govern the arrangements.
Most practices do not allow paid leave for jury duty.
Maternity/paternity leave
Maternity and paternity leave are governed by provincial statutes
and apply to all regular employees, including associate veterinar-
ians. Leave applies to both adoption and natural birth. Maternity
and paternity leaves are normally paid through employment
insurance, rather than the practice. As self-employed veterinari-
ans do not normally pay employment insurance, they are not
eligible to receive paid maternity or paternity leave.
It is a violation of provincial labour laws to terminate the employ-
ment of any person who has elected to take maternity or paternity
leave. Anything short of strict compliance is likely to result in alle-
gations of wrongful dismissal or human rights complaints.
Some employment agreements require that a notice period
(one to three months) be given prior to departure and return
from maternity or paternity leave. Legislation in most provinces
requires a minimum of 2 weeks notice of the date that the
employee is going to be leaving work.
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9. Professional Benefits
Continuing Education
The majority of practices offer continuing education benefits to
new graduates, viewing it as an investment in the future of the
employee and the practice. In some provinces, continuing
education is a requirement for all practicing veterinarians,
although new graduates may be exempt from this requirement
in the first year after graduation.
For practices offering continuing education benefits, the aver-
age amount is $1000 per year. This benefit may be used to pay
for all or a portion of the following: conference registration,
travel costs, hotel, and food. Practices can claim these expenses
as deductions from taxable income.
Practices that offer continuing education benefits normally
allow paid time off for the associate to attend continuing educa-
tion. The average is one week (5 working days).
Most practices attach conditions under which continuing
education benefits can be spent:
• Some practices allow a certain number of continuing education
hours, rather than a monetary limit.
• Some practices allow unused funds to be carried on to the
following year, others do not.
• Some practices ask the employee to commit for a specified period to
the practice (usually one year). If the employee leaves before then,
he or she may be required to reimburse the practice for continuing
education benefits that were used, on a pro-rated basis.
• The nature of the continuing education must be approved by the
practice, if the clinic is paying the cost. Usually, the choice of
meeting is determined by mutual agreement between the associ-
ate and the practice owner. Some practice owners suggest that
business-related continuing education is particularly valuable in
the first year. Many practice owners prefer that associates attend
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continuing education offered by local veterinary associations,
due to the low cost of travel and opportunity to meet local
veterinarians. Some practices allow continuing education funds
to be used for distance education modules.
• Many practices restrict the time of the year that continuing
education benefits can be used (for example, not during calving
season in a large animal practice). In many cases the benefit
cannot be used in the first six months of employment.
• Many practices expect the associate to present information to
other veterinarians and hospital staff upon their return from a
continuing education event.
• Some practices are willing to increase continuing education bene-
fits if the new associate has an interest in a particular field that has
the potential to generate significant revenue for the practice.
Some practices do not offer continuing education benefits for the
following reasons:
• A higher base salary may be paid, allowing the employee to
choose and pay for his or her own benefits.
• Some practices prefer to reserve some benefits as a reward for
long term employment or as an incentive to stay with the prac-
tice into a second year. In these practices, it is common for
continuing education benefits to be offered on a sliding scale,
increasing after one or two years of employment.
Malpractice Insurance
All practicing veterinarians should have malpractice insurance.
This benefit is normally paid for by the employer.
Practice owners usually choose to provide malpractice insurance
for all of the veterinarians working in a practice. This ensures that
the practice’s financial interests are protected, as well as the inter-
ests of the individual veterinarian. Coverage of new associates can
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often be obtained as an “add on” to existing policies, at little or no
extra expense. Many practices have blanket policies that cover not
only employees but also locum and other self-employed veterinari-
ans who work in the practice. Malpractice insurance is normally a
tax deductible expense for the practice.
Associates may occasionally choose to pay for their own malprac-
tice insurance, in the interests of portability or if no benefits are
provided by the practice. Malpractice insurance can be claimed as a
tax deductible expense if the associate is self-employed.
If the benefit is paid for by the employer, the associate should be
provided with written documentation that the insurance is in place.
Licensing Fees
The practice owner must ensure that each of his or her associate
veterinarians is licensed to practice. If the associate pays for his
or her own license, the practice owner should confirm the asso-
ciate’s status by contacting the licensing body or viewing the
current license.
A license to practice is granted to the individual, not to a
practice, and is therefore transferable out of the practice if the
new associate chooses to leave.
For many practices, payment of fees to the provincial licens-
ing body is a negotiable benefit. Licensing fees (and provincial
association membership fees, if they are included in the licens-
ing fee) are a deductible expense for the business or employee
(whoever pays the fee). It is common for the associate to pay for
his or her licensing fee in the first year, and for the practice to
pay for the licensing fee thereafter. Alternatively, the practice
may pay membership fees up to a defined maximum.
If the employer pays for the licensing fee, the employment
agreement may include a clause specifying that the employer be
reimbursed for the licensing fees on a pro-rated scale if the asso-
ciate leaves the practice. As with pro-rated continuing education
fees, this is easier to suggest in theory than it is to do in practice.
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Other Professional Fees
Payment of fees for voluntary
professional associations
(AAHA, OVMA, CVMA in some provinces) is a negotiable
benefit. Association membership benefits both the individual
and the practice as a whole, and there is no accepted standard
on whether the employee or employer should pay. Some associ-
ations offer reduced membership rates for new graduates.
In the case of practices that offer professional fees as a bene-
fit for associates, some define a maximum allowance for profes-
sional memberships, and the associate and practice owner
mutually agree on how it is applied. Some practices offer
membership in professional associations only after a specified
period of employment (often one year) as a reward for contin-
ued service. Other practice owners elect to provide a salary high
enough to allow the associate to choose his or her own optional
expenses, including membership in professional associations.
Many practices provide each associate with membership in
the local veterinary academy. This is normally an inexpensive
benefit that fosters collegiality by allowing the associate to meet
other local practitioners. It also assists the associate to become
familiar with local issues and may provide continuing education
opportunities in some cases.
Membership in professional organizations may significantly
reduce registration costs for continuing education events and
may benefit the practice directly by allowing discounts for
charge cards, insurance, and other member services.
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10. Vehicle Benefits
The employer has a legal obligation to pay for all the necessary
vehicle expenses for an employee who does farm calls or house
calls. The employer has no obligation to pay vehicle expenses
for an employee travelling to and from the workplace, or
between different locations of a practice (for example, between
the main office and a satellite clinic).
Vehicle benefits can be provided in one of three ways,
depending on the preference of the practice owner and the asso-
ciate. Before reaching an agreement, it is advisable that each
party (employer and associate) consult with their accountant
regarding the taxation implications of each type of arrangement.
a) The practice may provide a vehicle, paying for all costs
(vehicle purchase or lease, fuel, repairs, insurance, maintenance,
depreciation). This is the simplest solution, provided there is no
personal use of the vehicle by the associate.
Advantages: The vehicle costs may be tax deductible for the
employer.
Disadvantages: Personal use by the associate must be discussed and
agreed upon in advance. There may be a charge back to the practice
for personal use, and Revenue Canada requires complicated calcula-
tions to determine the taxable benefits to the employee.
b) The associate may provide his or her own vehicle and pay for
the associated costs. The associate is compensated on a per kilo-
meter basis or as a percentage of the mileage fee billed to the
client (usually 50%).
Advantages: If the associate is self-employed, some vehicle
expenses can be recaptured. Personal ownership may be finan-
cially rewarding and allow the new graduate the opportunity to
own a new vehicle immediately after graduation.
Disadvantages: The vehicle must be adequately insured to
protect both the associate and the practice from liability claims
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in case of an accident. A log must be kept of kilometers travelled
on practice business.
c) The associate may be paid a salary that is generous enough to
cover driving expenses when on practice business. The practice
owner should seek legal advice as to whether their own particu-
lar arrangement satisfies the legal obligation to provide neces-
sary equipment for the employee to do their job.
Whatever the arrangement for vehicle benefits, several issues
need to be discussed in advance:
• Liability and collision insurance coverage should be reviewed so
each party understands the coverage. For example, if the associ-
ate has an accident while driving the vehicle to a veterinary call
or continuing education event, who pays the deductible?
• A written agreement should specify that traffic laws are to be
obeyed at all times and that the associate is responsible for traf-
fic fines and violations. If the vehicle is provided by the practice,
the agreement should state that the vehicle is not to be driven by
a third party. Evidence of lack of due care (including driving
while intoxicated) may be grounds for dismissal.
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11. Other Benefits
Medical/Dental Plans
Some practices offer dental and health benefits to all employees
through an existing health plan. In most cases, the employee
contributes to the cost of the plan along with the employer
(a 50/50 arrangement is common). Some employees may not
wish to participate in group insurance plans, particularly if they
are already covered by their spouse’s insurance plan.
If the practice pays for all or part of the dental and health
benefits, it is common for this to take effect following a waiting
period, which varies from three months to two years after the
start of employment.
Health and/or dental insurance are often provided at consider-
able cost to the practice, and may have a negative impact on the
salary of the associate. In general, they are more economical for
larger practices than for small practices.
Medical and dental benefits have tax implications for the
associate, which should be discussed with an accountant.
Disability Insurance
Some practices offer disability insurance as a benefit for their
associates. If the practice pays for disability insurance for its
owners and full-time employees, this is a business expense
which is tax deductible for the practice. In this case, the benefits
are considered to be taxable income for the disabled person.
In some cases it may be more advantageous for associates to
purchase their own disability insurance. If the employee pays for
his or her own disability insurance, the benefits are not taxable.
For this reason, the employee may wish to “top up” or replace
the group insurance plan with their own portable plan. As a mini-
mum, the employee should obtain a copy of the disability insur-
ance policy for the plan offered by the practice, analyze it
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carefully, and obtain professional advice to ensure that his or her
particular needs (both personal and work-associated) are
adequately met by the plan.
Pension
Very few practices offer pension plans for associates. The logistics
of setting up a pension plan, plus the relatively high turnover of
staff, makes them unsuitable for most practices.
Some practices have group RRSPs. In most cases, new associ-
ates are able to join after a three month to one year waiting period.
Usually, the employer contributes no money and the RRSP is a
payroll deduction from the associate’s paycheck. In a few prac-
tices, the employer matches the employee’s contribution.
In the absence of a pension plan, associates are strongly
encouraged to start their own RRSP as soon as possible after
entering the workforce. Even a modest contribution made at the
start of one’s career may grow to a considerable amount by
retirement. The CVMA and some provincial associations have
negotiated significant reductions in fees for members who wish
to set up self-directed RRSPs.
Clothing Allowance
Some practices have a policy specifying that veterinarians must
wear a standard uniform when at work. This may include cover-
alls, calving suits, lab coats, and scrubs. Clothing of this nature
is normally provided by the practice and cleaned and maintained
at no cost to the employee (or the employer and employee may
enter into an agreement that reimburses the employee for clean-
ing and maintenance responsibilities). If the uniform is provided
by the practice, it remains the property of the practice and is
generally not worn except during working hours.
In addition, some practices have a dress code, and may for
example require a particular style of shoe or pants. If this is the
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case, the practice normally pays for the cost of the clothing or
gives a yearly stipend for purchase of the clothing.
If ordinary street clothing is permitted, it is normally
provided by the associate. Some practices prohibit employees
(including veterinarians) from wearing casual clothing such as
shorts or jeans. The strictness of the dress code usually reflects
the image that the practice owner wishes to present.
Workers Compensation
Workers Compensation is, strictly speaking, not an employee
benefit. It is a fund set up for injured workers, administered by
the province. Participation in a workers compensation plan is
mandatory in some provinces and optional in others. The benefit
for the participating employer is that injured workers are prohib-
ited from suing the employer for wages or other compensation
for work-related injuries. The benefit for employees is that they
receive financial compensation for injuries sustained on the job.
Associates should determine whether or not they are covered
by workers’ compensation before commencing employment.
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12. Benefits for Part-time Employees
and Self-employed Veterinarians
Part-time workers may be self-employed, or employed by one or
more veterinary practices. There are important tax issues involved,
which each party should discuss with their accountant before
entering into a long term agreement.
Part-time Employees
A part-time employee may be defined as someone who works less
than 20 hours per week. In general, veterinary practices provide
fewer benefits to part-time employees than to full-time employ-
ees. One exception is uniforms, which are usually supplied to
part-time employees if the business requires that they be worn.
Malpractice insurance is another benefit that is often provided for
part-time associates. Some practices offer continuing education
benefits and/or may pay for licensing fees, particularly for
employees that have been with the practice for a number of years
or who work three or more days per week. Benefits similar to
those offered to full-time staff may be offered, but often they are
pro-rated according to the number of days worked per week.
Self-employed Veterinarians
(Including Locums)
There are some taxation benefits for veterinarians who claim self-
employed, rather than employee, status. However, Revenue Canada
uses 4 tests to determine whether or not a person is an employee or
a self-employed independent contractor. These tests are:
1) Manner and consistency of payment
2) Risk of profit and loss
3) Ownership of tools and equipment
4) Degree of control
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These issues should be discussed by both the practice owner
and the associate veterinarian with their respective accountants.
Veterinary practices do not normally provide benefits to self-
employed veterinarians, other than malpractice insurance.
Self-employed veterinarians normally supply their own uniform
and in some cases, their own equipment. Professional expenses
such as continuing education, uniforms, licensing fees, and
membership in professional associations are paid by the self-
employed veterinarian and are a tax deductible expense. If these
benefits are provided by the practice, it is difficult for the veteri-
narian to justify his or her self-employed status.
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13. Non-competition Agreements
A non-competition agreement prevents the associate from practic-
ing within a specified area for a specified period of time after he
or she leaves the practice. They are not required by all employers,
but are a condition of employment in some practices.
If a non-competition agreement is deemed to be necessary, it
is usually part of the agreement that the associate signs before
starting employment. However, it is reasonable to allow a
three month probationary or trial period before the agreement
takes effect. If the associate leaves the practice before this
period is ended, there is little loss of goodwill and the practice
is unlikely to be adversely affected financially.
Non-competition agreements are not enforceable unless
reasonable in terms of time (usually one to three years after the
associate leaves the practice) and distance (depending on prac-
tice type, and the number and proximity of other practices).
Prior to signing a non-competition agreement, it is advisable
that each party (practice owner, associate) seek independent
legal advice with respect to the enforceability of its provisions
and obtain a written opinion on this issue.
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14. Performance and Salary Reviews
Performance reviews are of significant benefit to both the prac-
tice owner and the associate. The purpose of a performance
review is twofold: to allow the practice owner to articulate the
strengths and weaknesses that they perceive in the new graduate’s
job performance, and to allow the new graduate to communicate
his or her thoughts on the job so far. Ideally, the performance
review should include both praise and constructive suggestions
on the part of both the employer, and honest self-assessment and
assessment of the position on the part of the employee. Two way
conversation is vital.
An initial review should take place three months following the
start of the employment (this often coincides with the end of the
probationary period). A performance review undertaken at this
early stage allows problems to be dealt with before they become
entrenched. Thereafter, performance reviews can be undertaken
every three to six months. Many employers and employees seek
out informal feedback sessions at more frequent intervals, using
them as a teaching opportunity for issues such as marketing,
client relations, and practice management. As the associate gains
more experience within the practice, his or her duties may be
extended to include supervision of staff, involvement in planning
for the practice, and formulation of practice policies.
A salary review should be undertaken after 12 months of
employment (or sooner, if specified in the employment agree-
ment). Benefits and other contract items should also be
reviewed at this time. Some practices offer limited benefits to
employees in their first year, but significantly increase them
after 12 months of employment as a reward for satisfactory
performance. In any case, it is reasonable that the associate be
given an increase in compensation after one year to reflect his
or her increasing responsibilities within the practice, and his or
her growth in experience, independence, and competence.
The salary increase should also reflect the economic indices of
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the practice; one good test of fairness in compensation is
whether increases in practice earnings result in some increase
in employee earnings.
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15. Termination of Employment
The issues surrounding termination will vary depending upon
whether it is the employer or the employee who terminates the
employment. Although veterinarians are exempt from some
provincial employment standards provisions, they are not
exempt from provisions related to termination of employment.
Employer Terminates Employment
Employment standards in each province dictate the minimum
amount of written notice that an employer must give an employee
when terminating employment. In cases in which the notice
period is less than the legislative requirement (in other words,
the employee is asked to leave immediately), the employer is
required to provide a severance payment equal to the employee’s
regular salary for the notice period. This varies among provinces but
is typically one week for employment greater than three months but
less than one year, and two weeks after twelve months employment.
Some provinces specify that if the period of employment is less than
three months, no notice is required. The employment standard may
not apply to businesses where there are fewer than a given number
of employees (often, 15). Notice and severance are also not normally
required for part-time associates, or if the employment agreement
was for a specific period of time (for example, locum replacement
for an absentee veterinarian).
In the case of summary dismissal (for example, dismissal due
to a serious breach of trust, often specified in the employment
agreement), no notice or severance is required.
Although the employment standards dictate a minimum
notice or severance period, it is preferable (where circumstances
allow) for the practice owner to give the associate a longer
period of notice. One month for each year of service may be
reasonable under certain circumstances (for example, if the
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employee is generally doing a good job and the employer does
not have another candidate waiting for the job).
In some situations a shorter period of notice may be advisable
and if the situation is truly untenable the employer may be well
advised to pay the employee the legislated severance (or one pay
period) and request their immediate departure.
Employee Terminates Employment
There is no legislative requirement that an employee must give
the employer notice when quitting. However, the employee
should recognize that their early departure creates difficulties
for the practice owner and that this hardship has been recog-
nized by the courts. Veterinarians have been found liable for
“wrongful resignation” if reasonable notice is not given prior to
departure. In some cases a minimum period of notice is speci-
fied in the employment agreement. If no notice period is speci-
fied, one rule of thumb is that the notice period should be one
month per year of employment up to a maximum 6 months of
notice. This notice period can be waived if both parties agree on
a different arrangement. One month notice gives the employer
time to make temporary arrangements (hire a locum, modify
appointments) even though it may not be possible to advertise
and hire a new employee during this time frame.
Some practices require a longer period of notice, as specified
in the employment agreement. Long notice periods may lead to
difficulties if an unhappy veterinarian is forced to stay in an
untenable position. Generally, longer periods of notice are only
advisable if a good relationship exists with open communication
between both parties.
In all provinces, severance compensation is not normally
required if the employee quits the job.
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16. Animals Belonging to Employees
Most practices have a policy on the provision of services and
supplies for animals belonging to employees, and this policy
should be explained to the associate before hiring. This policy
may include not only the provision of care for sick or injured
animals, but also provision of pet boarding services, food, drugs,
vaccines, and other supplies and services to animals owned by
employees. In most cases, discounts are provided only for
animals living in the household with the employee, and are not
available for animals belonging to persons outside the employee’s
immediate family. Some practices do not offer discounts for
animals that are raised for commercial purposes (dogs or cats
used for breeding, horses raised for sale or racing, livestock).
Some practices extend professional care free of charge to
animals belonging to the practice employees, whereas others offer
a discount of 50% or more. The discount allowed for each case
may be negotiated between the associate and the practice owner,
considering issues such as the amount of work done by the asso-
ciate personally, the cost of lab work, x-rays and other services;
the use of other practice staff; and the number of animals requir-
ing treatment. It is important for the associate and hospital owner
to discuss the issue of cost before treatment commences, to avoid
misunderstandings. Unless the medical needs of the patient are
urgent, it is reasonable to ask that the animal is attended to at a
time that is not inconvenient to the practice.
It is common for practices to limit the number of animals that this
policy will cover (often, three animals per employee). Alternatively,
the total discount may be capped at a maximum value per year (a
figure of $1000 is used by some practices). Some practices offer pet
insurance as an employee benefit, in which case the costs of treat-
ment are billed in full to the insurance company.
In the case of food, vaccines, and supplies, the amount of the
discount varies widely between practices. Most practices allow
employees to purchase pet food at cost, or cost plus 10%.
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The practice may extend this policy to drugs, vaccines, and
other supplies provided the associate administers them only to
their own animals.
Associates are advised not to bring pet animals to work on a
regular basis, unless there is a clear agreement between them-
selves and the supervising veterinarian that this is appropriate.
The presence of companion animals (particularly those running
loose in the practice) poses risks to other employees, clients,
animals owned by other clients, and to the animals themselves.
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17. Community/Volunteer Activities
Veterinarians are often asked to volunteer time for community
activities, including school career days, 4-H club meetings,
humane society or Society for the Prevention of Cruelty to
Animals activities, and school tours of the practice. These activi-
ties are beneficial to the community and generate good will for
the practice. They also provide good experience for the associ-
ates, allowing them to represent the profession in their interac-
tion with pet owners and local community leaders. Practices are
encouraged to allow the new associate a reasonable amount of
paid time to participate in these activities, provided they are
related to the veterinary field and are likely to benefit the prac-
tice. The associate may be willing to donate his or her time to
these activities after normal working hours, but except under
unusual circumstances, these after hour activities are not
compensated by the practice.
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18. Practice Philosophy and Policies
Before entering into an employment agreement, it is important
that the practice owner and the prospective employee discuss
practice philosophy and policy issues. The philosophy of a prac-
tice has been defined as its most central values, including the
goals of the practice and the procedures by which its day to day
management is accomplished. Practice philosophies emerge
from the values and personalities of the owners, and it is impor-
tant that the associates are aware of these values and are
comfortable with them.
One expression of practice philosophy in the workplace is the
way in which veterinarians and support staff interact. In some prac-
tices, veterinarians and support staff treat each other with formality
whereas, in others, a less formal form of camaraderie is expected.
Another expression of practice philosophy is the type of surgical
and medical procedures that are performed by the practice, includ-
ing ear cropping, tail docking, declawing, and euthanasia of healthy
animals. Still another expression of practice philosophy involves
the treatment of wildlife and unowned animals.
Financial policies should also be discussed. Many practices
require written estimates before major procedures and workups.
Some practices adjust fees based on the client’s ability to pay;
others do not. Some practices extend credit whereas others
require payment in full at the time of service. It is essential that
the new associate be aware of these policies and be able to func-
tion within the limits set by the practice management.
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19. Employment and
Associate Agreements
It is in the interests of both the practice owner and the new gradu-
ate to negotiate and sign an employment agreement at the time of
hiring. In the case of veterinarians who are self-employed and
working on a contract basis, it is important that an associate agree-
ment be in place. The purpose of both employee and associate
agreements is to clarify performance expectations and minimize
the potential for conflict in the future. Some potential new associ-
ates are reluctant to bring up employment issues for fear of being
perceived as aggressive or untrusting. Some practice owners
assume incorrectly that the new associate is already familiar with a
perceived “industry standard.” To avoid this type of misunder-
standing or misinformation, it is important that the potential
employer and associate discuss and agree upon the issues raised in
these guidelines and express the result of their deliberations in
writing. It is far easier to agree on and put into writing the terms
agreed upon in advance, than to deal with issues on an ad hoc
basis as they arise during the course of employment, each party
trying to remember their original understanding. Surveys have
shown that practices that have an employment agreement or job
description in place when hiring an associate, experience lower
turnover rates than those that do not have employee agreements.
An employment or association agreement can be a formal
contract drawn up by a lawyer, or it can be an informal docu-
ment. Regardless of the type of agreement that is drawn up, the
terms must be reasonable, fair to both parties, supported by
sufficient financial consideration and in compliance with
provincial and federal law. The agreement should be specific to
the particular practice and the people involved. Once an agree-
ment is drawn up, both parties are strongly advised to obtain
legal advice before signing.
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The employment agreement should include the following:
1.
Duration. The contract should have a term of employment, stat-
ing how long the contract is enforceable and when it must be
renewed. The term is usually one year or less. The expiration of
the contract is designed to trigger the date of a performance
review and salary renegotiation.
2.
Compensation and formula (straight salary, percentage of
revenue generated, or both). If paid a percentage of revenue, the
agreement should specify if this is gross revenue, net revenue,
or something else. Payment for on call duties should also be
described. The agreement should also include what days are
paid for, what days are not, and specify additional compensation
for on call duties.
3.
Responsibilities and duties. The agreement should include a job
description for the new employee. Information on working
hours should also be included (for example, minimum hours per
day; required flexibility; shifts, if any; on call responsibilities;
number of weekends to be worked; number of holidays to be
worked; and any special requirements of the practice).
4.
Benefits. The agreement should spell out what benefits are offered,
how much they cost each party, and when they are available.
This includes vacation, statutory holidays, sick leave, disability
insurance, continuing education, licence fees and other profes-
sional fees, malpractice insurance, uniform or clothing allowance,
vehicle benefits, pension benefits, medical/dental insurance pack-
ages, and any other benefits offered by the practice.
5.
Other issues. The employment agreement may also include a
non competition and/or non-solicitation agreement, confiden-
tiality provisions, and termination policy (including grounds for
immediate dismissal, disability, notification of termination by
employer or employee).
A sample employee agreement is given in Appendix A.
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This employee agreement is provided as a sample only and the
reader should not adopt its content without seeking independent
legal advice prior to doing so.
1. Note on Terminology: The term “associate” is used here to
describe a veterinarian who is an employee (full-time or part-
time) of a veterinary practice, and has no share of ownership in
the practice.
2. Veterinary legislation in some jurisdictions suggests that payment
of a veterinarian based on their billings is a conflict of interest.
Even where such compensation is clearly allowed by law, some
believe that ethical problems are raised when compensation is tied
solely to fees billed. This opinion is by no means universal and
others point out that ultimately, all of the employee salaries and
practice owner income derive from fees billed.
3. Revenue Canada currently recognizes 31 cents per kilometer.
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Appendix A:
Sample Employment Agreement
This sample agreement is provided by the Canadian Veterinary
Medical Association as an example of an employment contract
for consideration by the parties. Prior to implementing any form
of legal document it is strongly recommended that all parties
seek and obtain independent legal and accounting advice. The
Canadian Veterinary Medical Association does not endorse this
or any other form of agreement which is provided merely to
assist its members in understanding some of the issues which
should be addressed in any employment relationship
This Professional Employment Agreement made this 1st day of
January, 2001.
Between :
IMA VETDOC, D.V.M.
(herein referred to as the “Employee”)
of the first part
and
SHESA OWNER, D.V.M. and HESA OWNER, D.V.M
Carrying on business in partnership under the firm
name and style of “Anywhere Animal Hospital”(herein
referred to as the “Employer”)
of the second part
Whereas
the Employer is a professional partnership which
carries on the practice of veterinary medicine from its principal
place of business being 123 Main Street, Anywhere;
And Whereas the Employee has been granted a degree of
Doctor of Veterinary Medicine;
And Whereas the Employer has agreed to employ the
Employee on the terms and conditions hereinafter set forth.
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Therefore this agreement witnesseth that in consideration of
the covenants, agreements and promises herein set forth and
other good and valuable consideration, the receipt and suffi-
ciency of which is by the parties hereto acknowledged, the
parties agree as follows:
1.00 Employment of Employee
1.01 Employment
The Employer agrees to employ the Employee and the
Employee agrees to provide services to the Employer in accor-
dance with the terms of this Agreement.
1.02 Agency
The Employee hereby acknowledges that he does not act as an
agent nor does any agency relationship exist between himself
and the Employer and agrees that he shall not represent himself
to be the agent of the Employer for any purpose and shall not
incur any obligation or make any promise or representation on
behalf of the Employer. Further, the Employee agrees to indem-
nify and save harmless the Employer against any damages,
suits, actions, or causes of actions directly or indirectly arising
out of any representations the Employee makes that he acts as
an agent for the Employer.
1.03 Obligations of Employee
Unless prevented by ill health or other sufficient cause, the
Employee, during the Term (as hereinafter defined) and every
renewal thereof, shall devote his full time and attention to the
business of the Employer, and shall not, without written permis-
sion of the Employer, directly or indirectly, engage in any other
business of any other corporation, firm or individual.
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1.04 Confidentiality
(a) The Employee shall well and faithfully serve the Employer and
use his best efforts to promote the interest thereof, and shall not
disclose the private affairs of the Employer or any secret of the
Employer to any person, other than the officers of the Employer,
and shall not use for his own purpose, or for any purpose other
than those of the Employer, any information he may acquire with
respect to the Employer’s affairs.
(b) All information, documents, customer data and like material is
hereby deemed to be confidential.
1.05 Non-Competition
(a) Upon termination of the Employee’s employment or of this
Agreement, the Employee agrees that, for a period of eighteen
(18) months following such termination, he shall not either
directly or indirectly, alone, as an employee, or as a member of a
partnership or corporation, engage in the practice of veterinary
medicine, nor deal directly with any client of the Employer within
the City of Anywhere and a twenty (20) kilometre radius thereof.
(b) The term “client” as employed in subparagraph (a) hereof shall
be deemed to be any party for whom the Employer has rendered
professional veterinary services within a period of two (2) years
prior to the termination referred to in subparagraph (a).
(c) The Employee acknowledges and agrees that the restrictions
contained in subparagraph (a) are reasonable in the circum-
stances and necessary for the protection of the integrity of the
Employer and agrees that he shall not challenge this covenant in
any subsequent court action based in law or equity and that this
clause may be raised as an estoppel to any such challenge.
1.06 Automobile and Expenses
(a) The Employee shall provide his own automobile suitable to
carry out the performance of the obligations of the Employee
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pursuant to this Agreement and shall be granted a car allowance
of thirty-one (31¢) cents per kilometre travelled plus parking
expenses actually incurred by him in the performance of his
duties (the “Automobile Expenses”).
(b) The Automobile Expenses shall be paid by the Employer to the
Employee no later than the fifteenth (15th) day of the month
subsequent to the month to which the Automobile Expenses relate.
1.07 Other Expenses
The Employee hereby acknowledges that, save and except any
expenses otherwise provided for in this Agreement, he shall be
solely responsible for the payment of any expenses incurred in
connection with the services performed by him pursuant to this
Agreement and that the Employer shall not be required to reim-
burse the Employee for any expenses so incurred.
1.08 Qualification
It shall be a condition of the Employee’s employment that he is
duly authorized to practise veterinary medicine in the Province
of ________________ and is a member in good standing of
[insert name of provincial regulatory body]. The Employer
hereby agrees to reimburse the Employee for any fees or levies
payable to such regulatory body for membership therein.
1.09 Job Description
The Employee hereby acknowledges having been advised of the
job description relating to this employment engagement which
has been annexed as Schedule “A” to this Agreement. Further,
the Employee acknowledges receipt of a copy of the Personnel
Manual of the Employer and agrees to abide by its terms and
any amendments thereto from time to time.
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2.00 Term
2.01 Initial Term
The initial term of this Agreement shall be for a period of two
(2) years from the date hereof (the “Term”).
2.02 Automatic Renewal
Notwithstanding the Term as set out in Section 2.01 hereof, the
Term of this Agreement shall be subject to automatic renewals
for successive terms of one (1) year unless terminated by either
party upon written notice of such termination delivered to the
other party not less than sixty (60) days prior to the end of the
then current Term.
3.00 Compensation
3.01 Salary
The Employer agrees to pay to the Employee for the services
provided by the Employee an annual salary in the amount of
____________________________ ($____________) Dollars
per annum payable in equal, bi-weekly instalments of
__________________________ ($____________) Dollars
subject to all statutory deductions including, but not limited to,
income tax, Canada Pension Plan payments and Unemployment
Insurance benefits.
3.02 Benefits
(a) The Employee shall have the option of participating in the
Employer’s disability insurance plan at the Employee’s own
expense in accordance with the benefits thereof established by
the issuer from time to time.
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(b) The Employer shall be responsible for obtaining and maintain-
ing during the term of this Agreement a policy of Errors and
Omissions Insurance covering the acts and omissions of the
Employee at the sole expense of the Employer.
(c) The Employee shall be at liberty to be absent from the opera-
tions of the veterinary hospital owned by the Employer for the
purpose of attending continuing education seminars, as agreed to
by the Employer, for up to five (5) days during any calendar year
in which this Agreement is in effect. The Employer agrees to pay
the costs of seminar registration or tuition, travel costs and
accommodations for one (1) night for the purpose of attending
any such continuing education seminar to a maximum annual
cost of two thousand ($2000.00) dollars.The Employee may be
required to pay the costs referred to herein but shall be entitled to
be reimbursed for all such reasonable costs by the Employer.
(d) The Employer shall provide the Employee with a uniform
allowance in the amount of four hundred ($400.00) dollars
annually for the purpose of permitting the Employee to acquire
such professional hospital apparel required by the Employee
including, but not limited to, lab coats, safety or rubber boots,
eye protection goggles. All such selections shall be made from
the selection inventory of garments determined by the Employer
to be the apparel worn in the hospital.
(e) The Employer shall be responsible for the payment of all dues and
levies for membership of the Employee in [insert name of provin-
cial regulatory body] and one other professional veterinary special
interest group selected by the Employee to a maximum cost for
such dues and levies of eight hundred ($800.00) annually.
3.03 Salary Review
On each anniversary date of this Agreement, the Employer shall
review the performance of the Employee with a view to increas-
ing the annual salary set out in paragraph 3.01 and, in the event
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that the Employer determines that any increase is warranted in
his sole discretion, then such increased salary shall be deter-
mined to be the salary paid to the Employee pursuant to the
terms of this Agreement and the provisions of paragraph 3.01
shall apply mutatis mutandis to such increased salary.
4.00 Property of Employer
4.01 Acknowledgement
The Employee hereby acknowledges that all documents related
to the performance of his services as a veterinarian including,
but not limited to, all contents of files, patient information and
lists, accounting records, and all other file information (the
“Materials”), shall be the sole property of the Employer and
further agrees that the Materials shall be returned to the
Employer upon twenty-four (24) hours’ notice.
5.00 Termination
5.01 Cause
The Employer may terminate this Agreement without notice or
pay in lieu thereof for just cause including, but not limited to,
the inability for any cause of the Employee to practise veteri-
nary medicine or the Employee being suspended or membership
privileges revoked by final order of [insert name of regulatory
body]. In the event that this Agreement is so terminated, the
Employer shall be entitled to withhold salaries due to the
Employee and to set off same against damages, if any, incurred
by the Employer as a result of the misconduct of the Employee.
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5.02 Notice
The Employer may terminate this Agreement at any time with-
out cause upon giving the Employee written notice in accor-
dance with the minimum standards set out in the Employment
Standards Act. The Employee may terminate this Agreement
upon the giving of six (6) weeks’ notice of resignation prior to
the effective date of such resignation.
5.03 Consequence of Termination
In the event that this Agreement or the employment of the
Employee is terminated for any cause whatever, the following
shall apply:
(a) All salaries which have been completely earned by the
Employee and unpaid shall be paid to the Employee by the
Employer subject to paragraph 5.01 hereof;
(b) All files, documents and records of the Employer in the posses-
sion of the Employee shall forthwith be delivered to the
Employer; and
(c) If required by the Employer, the Employee shall make himself
available to the Employer for a reasonable period after termina-
tion to provide any information relating to files in his posses-
sion at the date of termination.
6.00 General
6.01 Arbitration
If a dispute arises between the parties relating to this
Agreement, the parties agree to use the following procedure
prior to any party pursuing other available remedies:
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(a) A meeting shall be held promptly between the parties, attended by
individuals with decision-making authority regarding the dispute,
to attempt in good faith to negotiate a resolution of the dispute.
(b) If, within thirty (30) days after such meeting, the parties have
not succeeded in negotiating a resolution of the dispute, they
agree to submit the dispute to mediation and to bear equally the
costs of the mediation.
(c) The parties will jointly appoint a mutually-acceptable mediator,
seeking assistance in such regard from an appropriate mediation
facility if they have been unable to agree upon such appoint-
ment within twenty (20) days from the conclusion of the negoti-
ation period.
(d) The parties agree to participate in good faith in the mediation
and negotiations related thereto for a period of thirty (30) days.
If the parties are not successful in resolving the dispute through
the mediation, then the parties agree that the dispute shall be
settled by arbitration in accordance with the Arbitrations Act,
1991 and Arbitration Rules of Arbitration and Mediation
Institute of Canada Inc. The decision of the arbitrator shall be
final and binding and shall not be subject to appeal on a ques-
tion of fact, law or mixed fact and law.
6.02 Notice
Any notice authorized or required by this Agreement to be
given or served shall be in writing and deemed to be duly given
or served if the same shall be delivered personally, or shall be
sent by prepaid registered mail with return receipt requested to
the following address:
(a) In the case of the Employee:
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(b) In the case of the Employer:
In the event that notice shall be given by mail as aforesaid, it
shall be conclusively deemed to have been given on the fourth
(4th) business day after the date of mailing.
6.03 Assignment
The interest of the Employee under the Agreement shall not be
assigned to any person without the consent in writing of the
Employer. The Employer shall be entitled to assign his interest
pursuant to this Agreement.
6.04 Governing law
This Agreement shall be governed by and construed in accor-
dance with the laws of the Province of [insert province where
clinic is located].
6.05 Severability
In the event that any Article or Section of this Agreement is held
to be invalid or unenforceable by a court of competent jurisdic-
tion, such invalidity or unenforceability shall not affect the
remainder of the provisions hereof, but such parts shall be fully
severable and this Agreement shall be construed and enforced as
if such Article or Section had never been included herein.
6.06 Entire Agreement
This Agreement constitutes the entire agreement between the
parties hereto and there are no representations or warranties or
other terms except as herein contained in writing.
6.07 Time of Essence
Time shall in all respect be of the essence of this Agreement.
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6.08 Enurement
This Agreement shall enure to the benefit of and be binding
upon the parties hereto and their respective heirs, executors,
administrators and assigns.
IN WITNESS WHEREOF the parties have duly executed this
Agreement under seal.
SIGNED, SEALED & DELIVERED in the presence of
Witness Ima Vetdoc, D.V.M.
Witness Shesa Owner, D.V.M.
Witness Hesa Owner, D.V.M.
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