An Employee Release Letter is a crucial document used in Canadian employment law context when terminating an employment relationship. It serves as both a formal record of the termination and a legal agreement protecting both parties' interests. The document is typically used in situations of negotiated departures, redundancies, or mutual separations, providing clarity on termination terms while securing a release of claims from the employee. The letter must be drafted in compliance with Canadian federal and provincial employment standards, addressing mandatory notice periods, severance calculations, and benefit entitlements. It should also consider applicable human rights legislation and common law principles established by Canadian courts regarding reasonable notice and constructive dismissal.
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1. Date and Address Block: Formal letter heading with date and employee's full contact information
2. Salutation: Professional greeting addressing the employee by name
3. Confirmation of Termination: Clear statement of employment termination, including effective date and position
4. Termination Payments: Detailed breakdown of final pay, severance, and benefits continuation
5. Return of Company Property: Requirements and timeline for returning company assets and documents
6. Continuing Obligations: Reference to ongoing confidentiality and other existing contractual obligations
7. Release of Claims: Comprehensive release of legal claims against the employer
8. Consideration Period: Time provided to review and consider the release agreement
9. Independent Legal Advice: Acknowledgment of right to seek independent legal counsel
10. Signature Block: Space for signatures and dates for both parties
1. Reference Letter Provision: Include when employer agrees to provide employment references
2. Non-Disparagement Clause: Include for senior positions or sensitive departures
3. Outplacement Services: Include when career transition services are being offered
4. Stock Options/RSUs: Include when employee has outstanding equity compensation
5. Post-Employment Restrictions: Include when new non-compete or non-solicit terms are added
6. Benefits Continuation: Include when extending health or other benefits beyond termination
7. Re-Employment Provisions: Include when addressing future employment possibilities
8. Cooperation Clause: Include when ongoing assistance with transition or legal matters is needed
1. Schedule A - Termination Payment Calculation: Detailed breakdown of severance, notice pay, and other financial entitlements
2. Schedule B - Benefits Summary: Details of benefit continuation and termination dates
3. Schedule C - Company Property Checklist: List of company assets to be returned
4. Schedule D - Existing Confidentiality Agreement: Copy of relevant existing agreements being referenced
Relevant legal definitions
Company
Employee
Effective Date
Termination Date
Severance Payment
Released Claims
Released Parties
Confidential Information
Company Property
Consideration
Employment Agreement
Statutory Entitlements
Benefits
Accrued Vacation Pay
Notice Period
Outstanding Obligations
Business Records
Intellectual Property
Restrictive Covenants
Final Release
Employee
Effective Date
Termination Date
Severance Payment
Released Claims
Released Parties
Confidential Information
Company Property
Consideration
Employment Agreement
Statutory Entitlements
Benefits
Accrued Vacation Pay
Notice Period
Outstanding Obligations
Business Records
Intellectual Property
Restrictive Covenants
Final Release
Clauses
Termination
Severance Payment
Final Wages
Benefits Continuation
Release of Claims
Confidentiality
Non-Disparagement
Return of Property
References
Continuing Obligations
Independent Legal Advice
Consideration Period
Tax Implications
Governing Law
Entire Agreement
Acknowledgment and Acceptance
Non-Admission
Survival
Amendment
Severability
Severance Payment
Final Wages
Benefits Continuation
Release of Claims
Confidentiality
Non-Disparagement
Return of Property
References
Continuing Obligations
Independent Legal Advice
Consideration Period
Tax Implications
Governing Law
Entire Agreement
Acknowledgment and Acceptance
Non-Admission
Survival
Amendment
Severability
Relevant Industries
Technology
Financial Services
Manufacturing
Retail
Healthcare
Professional Services
Education
Construction
Mining
Energy
Telecommunications
Transportation
Agriculture
Entertainment
Hospitality
Non-Profit
Government Services
Real Estate
Relevant Teams
Human Resources
Legal
Finance
Operations
Sales
Marketing
Information Technology
Research and Development
Customer Service
Administration
Production
Quality Assurance
Facilities Management
Business Development
Strategy
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Director
Manager
Supervisor
Senior Executive
Vice President
Department Head
Team Lead
Professional Staff
Administrative Staff
Technical Specialist
Sales Representative
Project Manager
Coordinator
Analyst
Associate
Consultant
Officer
Support Staff
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