How Do You End a Dental Associate Agreement in Ontario?

Ending a dental associate agreement is rarely as simple as deciding to move on. Whether you are the associate dentist or the practice owner, the way an agreement comes to an end can affect patients, compensation, records, and what each party is allowed to do afterward. Before anyone gives notice or signs anything, it helps to understand what the agreement actually says, and what may still apply even after it ends.

Below, we walk through some of the key provisions that tend to come up when a dental associate relationship is ending, and why reviewing them carefully, ideally with a lawyer, may help avoid disputes down the road.

Start With the Termination Provisions

Most dental associate agreements set out specific ways the relationship can end. This may include termination without cause on notice, termination for cause where certain conditions are met, or termination by mutual agreement. Depending on how the agreement is worded, the process and the consequences can look quite different depending on which route applies.

It is worth reading these provisions closely before taking any steps. In some cases, giving notice the wrong way, or ending the agreement without following the required process, may create unnecessary risk for either party.

Notice Requirements Matter

Many agreements require a minimum notice period before either party can end the relationship, often somewhere between 30 and 90 days, though this varies depending on what was negotiated. The agreement may also specify how notice must be delivered, such as in writing, to a particular address, or to a specific person at the practice.

Failing to follow the notice requirements set out in the agreement may lead to disagreements about when the agreement actually ended, and in some cases, about compensation owed for the notice period itself.

Patient Matters Need a Plan

When an associate leaves a practice, patients are often affected, even if indirectly. Some agreements address how patients are notified, whether the associate may continue treating certain patients elsewhere, and how ongoing treatment plans are handled during the transition. Depending on the facts, professional and regulatory obligations relating to continuity of care may also apply, separate from what the agreement itself says.

Working out a reasonable plan for patient communication early on may help reduce confusion and complaints once the transition happens.

Outstanding Compensation Should Be Confirmed

Dental associate agreements often use compensation models based on production, collections, or a combination of both, sometimes with adjustments made after the fact. When the relationship ends, there may be amounts still owing to the associate, or amounts the practice believes should be deducted, such as for lab fees or supplies. Reconciling these figures can take time, especially if billing has not fully caught up by the time notice is given.

It is a good idea for both sides to request a clear accounting of what is owed as of the termination date, and to keep this separate from any disagreement about the reasons for the departure.

Records and Ongoing Access

Patient records generally belong to the practice, but an outgoing associate may still need some form of access, for example to respond to a complaint, a regulatory inquiry, or a request from a former patient. The agreement may address how records are stored, who retains custody, and what access, if any, the departing associate keeps. Depending on the facts, professional record-keeping obligations may also come into play.

Post-Termination Restrictions Can Still Apply

Many dental associate agreements include restrictive covenants that continue after the agreement ends, such as non-solicitation of patients or staff, or in some cases, restrictions on practising within a certain distance for a period of time. Whether these provisions are enforceable can depend on a number of factors, including how they are worded and the specific circumstances involved.

Before agreeing to end a relationship, or before starting a new position elsewhere, it may be worth having a lawyer review these clauses so you understand what may still apply to you after you leave.

Putting It All Together

Ending a dental associate agreement usually involves more than a single conversation or a resignation letter. Notice requirements, patient transition, outstanding compensation, records, and post-termination restrictions can all come into play, and how they are handled may affect both parties well after the last day of work. Reviewing the agreement carefully, and understanding how these provisions interact, can help the transition go more smoothly for everyone involved.

Because every agreement is different, and outcomes depend on the specific wording and facts involved, it is generally a good idea to speak with a lawyer before giving or accepting notice, particularly if there is any uncertainty about how the termination provisions apply.

Frequently Asked Questions

Q: Can a dental associate agreement be ended without cause?

A: In many cases, yes, provided the required notice is given in the way the agreement describes. The specific notice period and delivery requirements depend on what was negotiated, so it is worth reviewing the agreement closely before acting.

Q: Who keeps the patient records after an associate leaves?

A: Patient records generally remain with the practice, but the agreement may set out whether the departing associate retains any access, for example to respond to a complaint or a patient request. Professional obligations around record-keeping may also apply, depending on the facts.

Q: Are non-solicitation or non-compete clauses in dental associate agreements enforceable?

A: It depends on the wording of the clause and the specific circumstances. Some restrictive covenants may be enforceable, while others may not hold up, depending on how they are drafted. A lawyer can review the specific clause and advise on how it may apply to your situation.

Q: What happens to unpaid compensation when the agreement ends?

A: This depends on the compensation model in the agreement and how billing and collections are handled at the time of termination. Both parties should request a clear accounting of amounts owed as of the termination date to help avoid disputes later.

Speak With DevLaws

If you are an associate dentist or a practice owner thinking about ending an associate agreement, the team at DevLaws is here to help you understand the provisions that may apply to your situation. Contact us to discuss the specific facts of your case.

contact@devlaws.com | +1 437 290 0424 | devlaws.com

Disclaimer

This article is for general information purposes only and does not constitute legal advice. Every situation is different, and the outcome of any legal matter depends on the specific facts involved. If you have questions about your particular circumstances, you should speak with a lawyer.