Veterinary Associate Agreements in Ontario: What Veterinarians Should Review Before Signing

Veterinary associate agreements are commonly used when veterinarians join an existing veterinary clinic as associates rather than practice owners. These agreements establish the legal relationship between the clinic owner and the associate veterinarian, including compensation, responsibilities, and termination rights.

Although many clinics use standard form agreements, the terms can vary significantly between practices. Veterinarians considering an associate position should carefully review the provisions of their agreement before signing to ensure they understand their rights and obligations.

Understanding the Associate Relationship

Veterinary associates may work with clinics under either an independent contractor arrangement or an employment relationship. The structure of the agreement determines the legal obligations of both parties.

Associate agreements typically address matters such as:

• the veterinarian’s role within the clinic

• clinical responsibilities

• scheduling expectations

• use of clinic equipment and facilities

• administrative responsibilities

The agreement should clearly outline the scope of the associate’s duties and the expectations of the clinic owner.

Compensation Structure

One of the most important aspects of a veterinary associate agreement is the compensation model.

Many veterinary clinics compensate associates using a percentage-based system tied to the revenue generated by the veterinarian’s services.

Compensation models may be based on:

• billings or production

• collections received by the clinic

• a base salary combined with production incentives

Veterinarians should carefully review how compensation is calculated and whether deductions for laboratory costs or other expenses apply.

Independent Contractor vs Employment Status

Many veterinary clinics classify associates as independent contractors rather than employees. However, simply labeling an associate as an independent contractor does not necessarily determine the legal nature of the relationship.

The actual working relationship between the veterinarian and the clinic may influence how the arrangement is interpreted under employment and tax laws.

Veterinarians should ensure that the terms of the agreement accurately reflect the intended working relationship.

Termination Provisions

Associate agreements typically contain provisions governing how the relationship may be terminated.

These clauses often specify:

• notice periods required to terminate the agreement

• circumstances that allow termination for cause

• termination without cause provisions

Notice periods can vary significantly depending on the agreement. Veterinarians should ensure they understand the required notice obligations before entering into the agreement.

Restrictive Covenants

Veterinary associate agreements often include restrictive covenants designed to protect the goodwill of the clinic.

These may include:

Non-Compete Clauses

A non-compete clause may restrict the associate veterinarian from practicing within a specified geographic area for a period of time after leaving the clinic.

Non-Solicitation Clauses

Non-solicitation clauses typically prevent a departing associate from contacting or recruiting the clinic’s clients or employees.

Veterinarians should carefully review the geographic scope and duration of these restrictions to understand how they may affect future employment opportunities.

Ownership of Client Records

Veterinary associate agreements usually address the ownership of client records and confidential information.

In most cases, the veterinary clinic retains ownership of client records and related business information. Associates are generally required to maintain confidentiality regarding clinic information during and after the relationship.

Veterinarians should ensure they understand their obligations regarding client records and confidential information.

Why Legal Review of Associate Agreements Matters

Associate agreements often contain detailed provisions that can significantly affect a veterinarian’s career and financial arrangements.

Before signing an associate agreement, veterinarians may wish to obtain legal advice to ensure they understand:

• compensation provisions

• termination obligations

• restrictive covenants

• confidentiality obligations

Reviewing the agreement in advance can help veterinarians avoid disputes and ensure the contract reflects fair and reasonable terms.

Speak With a Lawyer Before Signing a Veterinary Associate Agreement

Veterinarians considering an associate position should carefully review their agreement before signing.

If you are reviewing a veterinary associate agreement or considering joining a veterinary clinic, you can Book a Consultation to discuss your situation and determine the appropriate next steps.