The Early Release From Employment Contract is a crucial document used in Canadian employment law when both employer and employee agree to terminate their employment relationship before its intended end date. This document is particularly relevant in situations involving restructuring, career changes, or mutual agreements to part ways. It provides legal protection for both parties by clearly outlining the terms of separation, including financial arrangements, ongoing obligations, and mutual releases. The agreement must comply with both federal and provincial employment standards, including minimum notice periods and severance requirements. It typically addresses key aspects such as compensation, benefits continuation, confidentiality obligations, and the return of company property. This document is essential for ensuring a clean break while maintaining professional relationships and minimizing the risk of future legal disputes within the Canadian legal framework.
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1. Parties: Identification of the employer and employee, including legal names and addresses
2. Background: Brief description of the employment relationship, including start date, position, and reason for early release
3. Definitions: Key terms used throughout the agreement, including 'Effective Date', 'Release Period', and other relevant terms
4. Termination Date: Clear statement of when the employment relationship will end
5. Payment and Consideration: Details of all financial compensation, including salary continuation, severance, benefits, and treatment of outstanding wages/vacation pay
6. Release and Waiver: Mutual release of claims between parties, specifying what rights are being waived
7. Confidentiality: Ongoing obligations regarding confidential information and company property
8. Return of Property: Requirements and timeline for returning company property
9. Non-Disparagement: Agreement by both parties not to make negative statements about each other
10. Reference Letter: Terms regarding employment references and confirmation of employment
11. Governing Law: Specification that the agreement is governed by Canadian law and the applicable province
12. Execution: Signature blocks and date of agreement
1. Continued Benefits Coverage: Include when extending health/dental benefits beyond termination date
2. Stock Options/RSUs: Include when employee has outstanding equity compensation that needs to be addressed
3. Outplacement Services: Include when employer is providing career transition assistance
4. Non-Competition: Include when enforcing existing non-compete provisions or creating new ones (noting enforceability limitations in Canada)
5. Non-Solicitation: Include when restricting employee from soliciting employees/customers
6. Cooperation: Include when ongoing assistance may be needed for transition or legal matters
7. Immigration Status: Include when employee's work permit or immigration status needs to be addressed
8. Independent Legal Advice: Include when specifically acknowledging that employee had opportunity for independent legal advice
1. Schedule A - Calculation of Payments: Detailed breakdown of all payments including salary, severance, benefits, and statutory entitlements
2. Schedule B - Outstanding Company Property: Itemized list of company property to be returned
3. Schedule C - Reference Letter: Agreed form of reference letter or employment confirmation
4. Schedule D - Existing Restrictive Covenants: Copy of any existing non-compete or non-solicitation obligations from employment agreement
5. Schedule E - Benefits Continuation Details: Specific details of any continued benefits coverage including duration and terms
Relevant legal definitions
Agreement
Effective Date
Termination Date
Company
Employee
Employment Agreement
Confidential Information
Company Property
Release
Claims
Consideration
Severance Payment
Benefits
Accrued Obligations
Vacation Pay
Notice Period
Outstanding Compensation
Statutory Entitlements
Parties
Governing Law
Released Parties
Return Date
Restrictive Covenants
Personal Information
Extended Benefits Period
Original Employment Term
Continuing Obligations
Reference Period
Intellectual Property Rights
Final Pay
Employment Standards Legislation
Effective Date
Termination Date
Company
Employee
Employment Agreement
Confidential Information
Company Property
Release
Claims
Consideration
Severance Payment
Benefits
Accrued Obligations
Vacation Pay
Notice Period
Outstanding Compensation
Statutory Entitlements
Parties
Governing Law
Released Parties
Return Date
Restrictive Covenants
Personal Information
Extended Benefits Period
Original Employment Term
Continuing Obligations
Reference Period
Intellectual Property Rights
Final Pay
Employment Standards Legislation
Clauses
Termination
Severance
Release and Waiver
Confidentiality
Non-Disparagement
Return of Property
Benefits Continuation
Final Payment
Governing Law
Entire Agreement
Amendment
Severability
Independent Legal Advice
Non-Competition
Non-Solicitation
Intellectual Property
Cooperation
Indemnification
Tax Treatment
Survival
Notice
Assignment
Counterparts
Reference
Acknowledgment
Dispute Resolution
Privacy
Force Majeure
Interpretation
Waiver
Severance
Release and Waiver
Confidentiality
Non-Disparagement
Return of Property
Benefits Continuation
Final Payment
Governing Law
Entire Agreement
Amendment
Severability
Independent Legal Advice
Non-Competition
Non-Solicitation
Intellectual Property
Cooperation
Indemnification
Tax Treatment
Survival
Notice
Assignment
Counterparts
Reference
Acknowledgment
Dispute Resolution
Privacy
Force Majeure
Interpretation
Waiver
Relevant Industries
Technology
Financial Services
Manufacturing
Retail
Healthcare
Professional Services
Education
Construction
Mining
Energy
Telecommunications
Transportation
Hospitality
Media and Entertainment
Real Estate
Agriculture
Non-Profit
Relevant Teams
Human Resources
Legal
Employee Relations
Compensation and Benefits
Executive Leadership
Talent Management
Compliance
Administrative Services
Corporate Services
Risk Management
Relevant Roles
Human Resources Director
HR Manager
Legal Counsel
Employment Lawyer
HR Business Partner
Compensation and Benefits Manager
HR Administrator
Talent Management Director
Employee Relations Manager
Chief Human Resources Officer
HR Coordinator
Recruitment Manager
HR Generalist
Chief Legal Officer
Paralegal
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