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A conflict of interest policy is a document used by an employer to describe the situations in which its employees may be faced with a conflict of interest. Usually, these documents also describe how employees can report a potential conflict of interest.
These types of policies are usually very short and concise. In fact, they are often not presented separately from other employment documents. In other words, a conflict of interest policy may be included in an employee handbook or may be attached to other employment documents and policies, such as an employment contract.
Conflict of interest involve situations where the employee may be motivated by something other than his or her work for the employer. All employers, even small businesses, should consider having a comprehensive conflict of interest policy for their employees.
How to use this document ?
This document is fairly short and simple. It asks only the name of the employer followed by few basic questions about what constitutes a conflict of interest.
The completed policy describes exactly how a conflict of interest is defined by the employer and how employees can report potential conflicts of interest.
It is not a negotiated agreement, so when it is completed, it should simply be given to employees or added to another working document, such as an employment contract.
There are no specific laws regarding a conflict of interest policy, but in general, the document should give employees as much information as possible about the employer's specific guidelines so that they do not contradict the policy.
In Canada, it has been judicially recognized that in order for an employer's policy to be valid, it must be:
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