As many dentists discover, associate agreements range anywhere from fair to unfair. Often times, they are written heavily in favour of the employer and can restrict a dentist to unreasonable terms. These agreements, however, are almost always negotiable and can be adjusted to ensure a mutually beneficial contract is made.

Before addressing specific points within the contract, you want to be sure that the basics align with your career and lifestyle aspirations. This may seem obvious, but the promise of good pay or vacation time can be distracting. Ask yourself: Is this job and agreement a step in the right direction?

When forming an associate agreement, consider the following points:

Billings

A typical associate should make anywhere between 30-40% of gross billings, depending on the market, location, and specifics of the practice. Anything less and you may want to consider renegotiating these terms.

Vacation Time

Associate agreements tend to be overly restrictive on the amount of allowed vacation time. A full-time associate should be able to negotiate at least two weeks off per year. You have sacrificed a substantial amount of time and effort to get to this point; it is not unreasonable to expect some time off to enjoy with your family.

On-Call Time and Responsibility

On-call obligations can be extreme, and terms regarding on-call time should not be overlooked. We have seen agreements in which the associate was required to be available every hour of every day in a year. Make sure you are comfortable with the on-call commitment before you proceed.

Practice Purchase

In many cases, associates are in a position where the owner of the practice is approaching retirement and wanting to sell the practice. If purchasing the practice is something that is even remotely being considered, a first right of refusal to purchase should be in the contract, as it allows the associate to make an informed decision.

Supplies

The agreement should specifically indicate what the clinic will supply to the dentist. In most cases all basic instruments and supplies are covered, whereas specialized equipment can be brought in at the cost of the associate and at the clinic’s approval.

Restrictive Covenant

Almost all associate agreements have a clause restricting a parting associate’s future employment; specifically, it usually states that the associate may not work as a dentist within a specified distance of the clinic for a specified time. It is important to thoroughly consider this and ensure the restrictions are reasonable. Consider whether or not this clause will force a relocation or extended commute in the future.

Termination of Contract

An associate contract should outline the terms for cancellation of the contract. Like many employment contracts, it is not unreasonable to have a probationary period where either party can sever the contract without penalty. Beyond the probationary period, advanced written notice is usually required to sever the contract. This written notice can range between three and nine months with six months being the most reasonable time period. It is important to consider future goals when establishing the term (length) of the contract. If you are keen to start your own practice sooner than later, you should factor this into the duration of the agreement.

Associate agreements are always negotiable. Take your time and go over the contract thoroughly. Our office has experience reviewing associate contracts across Canada and can help provide insight into what agreement works best for you. If you, or anyone you know, would like a review of an associate agreement, please feel free to contact our office.