Employee Termination Release Agreement for Canada

Employee Termination Release Agreement Template for Canada

A comprehensive legal document used in Canadian employment law that formalizes the termination of employment between an employer and employee. This agreement outlines the terms and conditions of the employment separation, including severance payments, benefits continuation, and release of claims, while ensuring compliance with federal and provincial employment standards, human rights legislation, and other applicable Canadian laws. The document provides protection for both parties by clearly stating all obligations, entitlements, and mutual releases, while incorporating necessary provisions for confidentiality, non-disparagement, and return of company property.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Generate a Bespoke Document

1. Select your governing law:

2. Enter your key requirements:

3. Create your document to edit, review or download

Download a Standard Template

Get our Canada-compliant Employee Termination Release Agreement

4.6 / 5

4.8 / 5

Alternatively: Run an advanced review of an existing
Employee Termination Release Agreement

Let Genie AI's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.

Upload your Doc

What is a Employee Termination Release Agreement?

The Employee Termination Release Agreement is a crucial document in Canadian employment law, used when an employer terminates an employee's employment without cause or as part of a negotiated departure. This agreement serves multiple purposes: it provides clarity on the terms of separation, documents the consideration being provided to the employee, and obtains a release of claims from the employee. The document must comply with minimum standards set by federal and provincial employment legislation, including the Canada Labour Code or provincial Employment Standards Acts, depending on the jurisdiction. It typically includes provisions for severance payments, benefits continuation, confidentiality obligations, and various other post-employment terms. The agreement is particularly important for protecting employers from future claims while ensuring employees receive their statutory and agreed-upon entitlements. It's essential that the agreement be drafted in compliance with applicable Canadian employment laws and that employees be given reasonable time to review and seek independent legal advice before signing.

What sections should be included in a Employee Termination Release Agreement?

1. Parties: Identification of the employer and employee, including full legal names and addresses

2. Background: Brief recitation of employment history, termination date, and context for the agreement

3. Definitions: Key terms used throughout the agreement, including 'Released Parties', 'Claims', and specific payment terms

4. Termination Date: Clear statement of the effective date of employment termination

5. Consideration: Detailed description of all payments and benefits being provided in exchange for the release

6. Release and Discharge: Comprehensive release of claims against employer and related parties

7. Tax Treatment: Clarification of tax treatment of payments and employer's withholding obligations

8. Confidentiality: Obligations regarding confidentiality of agreement terms and company information

9. Non-Disparagement: Mutual or unilateral commitments regarding future statements about the other party

10. Return of Property: Requirements for returning company property and documents

11. General Provisions: Standard contract clauses including governing law, entire agreement, and severability

12. Independent Legal Advice: Acknowledgment of opportunity to seek independent legal counsel

13. Execution: Signature blocks and date of agreement

What sections are optional to include in a Employee Termination Release Agreement?

1. Post-Employment Restrictions: Non-competition and non-solicitation provisions, if not already covered in employment agreement

2. Reference Letter: Terms regarding future employment references and agreed-upon language

3. Ongoing Cooperation: Requirements for employee assistance in transition or future matters

4. Benefits Continuation: Details of any extended health benefits or insurance coverage

5. Equity Compensation: Treatment of stock options, RSUs, or other equity-based compensation

6. Outplacement Services: Details of any career transition services being provided

7. Re-Employment: Terms regarding potential future employment with the company

8. Press Release/Communications: Agreed language for internal/external communications regarding departure

What schedules should be included in a Employee Termination Release Agreement?

1. Schedule A - Payment Details: Detailed breakdown of all payments including salary continuance, severance, benefits, and other compensation

2. Schedule B - Outstanding Equity Calculations: Detailed calculations for any stock options, RSUs, or other equity compensation

3. Schedule C - Benefits Continuation Details: Specific details of continued benefits coverage including duration and terms

4. Appendix 1 - Reference Letter: Agreed form of reference letter if applicable

5. Appendix 2 - Company Property Checklist: List of company property to be returned

6. Appendix 3 - Communications Plan: Approved internal and external communications regarding the termination

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Cost

Free to use

Relevant legal definitions

Clauses

Relevant Industries

Technology

Financial Services

Manufacturing

Retail

Healthcare

Professional Services

Education

Construction

Energy

Transportation

Telecommunications

Mining

Real Estate

Entertainment

Hospitality

Non-Profit

Relevant Teams

Human Resources

Legal

Employee Relations

People Operations

Talent Management

Compensation and Benefits

Risk Management

Corporate Governance

Executive Leadership

Relevant Roles

Human Resources Director

HR Manager

Employment Lawyer

Legal Counsel

HR Business Partner

Chief Human Resources Officer

HR Specialist

Talent Management Director

Employee Relations Manager

HR Operations Manager

Benefits Administrator

Compensation Specialist

HR Coordinator

Chief Legal Officer

General Counsel

Corporate Secretary

Risk Manager

Find the exact document you need

No matches found.

Mutual Release (Real Estate)

A Canadian law-governed agreement where parties mutually release each other from claims and obligations related to a real estate transaction or relationship.

How Cambridge United Uses Genie AI to Speed Up Player Signings and Slash Legal Costs

Generate a Bespoke Document

Download a Standard Template

What is a Employee Termination Release Agreement?

What sections should be included in a Employee Termination Release Agreement?

What sections are optional to include in a Employee Termination Release Agreement?

What schedules should be included in a Employee Termination Release Agreement?

Authors

Alex Denne

Jurisdiction

Publisher

Document Type

Sector

Cost

Find the exact document you need

Mutual Release (Real Estate)

Liability Waiver For Kayak Rental

Hold Harmless Agreement Vehicle Release

General Release Of Claims Form

Employee Waiver Of Liability

Release And Covenant Not To Sue Form

Release And Hold Harmless Agreement (Real Estate)

Photography Copyright Transfer Agreement

Release Of Liability Employment Termination

Waiver Indemnification Agreement

Hunting Lease Liability Waiver

Covenant Not To Sue Form

Unconditional Release From Listing Agreement

Termination And Release Agreement (Real Estate)

Release Of Contract Form (Real Estate)

Mutual Release Agreement Landlord Tenant

Non Compete Release Form

Model Release Agreement

Vehicle Damage Release Form

Settlement And Release Letter

Film Release Agreement

Co Performer Release Agreement

Commercial Lease Release Form

Contractor Waiver Of Liability

Press Release Agreement

Video Release Agreement

General Waiver Of Liability

Waiver Of Claims Agreement

Waiver And Release Of Non Compete Obligations

Simple Release Agreement

Release Of Security Agreement

Release Of Claims Form Employment Termination

Release Of Claim And Subrogation Receipt

Media Release Agreement

Covenant Not To Sue Settlement Agreement

Unilateral Release Agreement

Talent Release Agreement

Release And Indemnification Form

Release Of Guarantee Agreement

Release Of Confidentiality Form

Genie’s Security Promise

Your documents are private:

Your documents are protected:

Organizational security:

Use Cases

Generate Legal Docs Free