Employment Contract Termination Notice for Canada

Employment Contract Termination Notice Template for Canada

A formal document used in Canadian employment law to notify an employee of the termination of their employment contract. This notice complies with both federal and provincial employment standards legislation, outlining the terms and conditions of the employment termination, including the effective date, notice period or payment in lieu of notice, final pay calculations, benefit information, and any additional severance entitlements. The document ensures compliance with minimum statutory requirements while potentially including additional provisions based on the employment contract, company policy, or common law obligations.

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What is a Employment Contract Termination Notice?

The Employment Contract Termination Notice is a crucial document in Canadian employment law, used when an employer needs to formally end an employment relationship. It must comply with the Canada Labour Code for federally regulated industries or the relevant provincial employment standards legislation for provincially regulated businesses. This document is essential for both terminations with cause and without cause, though the content and requirements differ significantly between these situations. The notice must include specific information mandated by law, such as the termination date, notice period or payment in lieu of notice, and details about final pay and benefits. It serves as an official record of the termination and helps ensure the employer meets all legal obligations while managing potential legal risks.

What sections should be included in a Employment Contract Termination Notice?

1. Letter Header: Company letterhead, date, and formal addressing to the employee including their name and address

2. Notice of Termination Statement: Clear statement indicating employment termination and the effective date

3. Reason for Termination: If applicable and appropriate to disclose, a brief explanation of the termination reason (with/without cause)

4. Notice Period Details: Specification of the notice period or payment in lieu of notice

5. Final Pay Information: Details about final salary, outstanding vacation pay, and other compensation

6. Company Property Return: List of company property to be returned and process for return

7. Continuation of Benefits: Information about benefit coverage during notice period and termination date

8. Reference Policy: Statement about company's policy regarding employment references

9. Contact Information: HR or relevant department contact details for questions or further information

10. Signature Block: Signature lines for authorized company representative and acknowledgment space for employee

What sections are optional to include in a Employment Contract Termination Notice?

1. Severance Package Details: Used when offering additional severance beyond statutory requirements

2. Outplacement Services: Include when company is offering career transition support

3. Non-Competition/Non-Solicitation Reminder: Include when original employment agreement contained these clauses

4. Release Agreement Reference: When termination includes a separate release or settlement agreement

5. Exit Interview Arrangements: When company policy requires an exit interview

6. Project Transition Instructions: For roles requiring handover of responsibilities

7. Stock Options/Equity Information: When employee has company shares or stock options

8. Confidentiality Reminder: Reiteration of ongoing confidentiality obligations when applicable

What schedules should be included in a Employment Contract Termination Notice?

1. Schedule A - Calculation of Final Payment: Detailed breakdown of final pay, including salary, vacation pay, and severance calculations

2. Schedule B - Benefits Summary: Detailed information about benefit continuation and termination dates

3. Schedule C - Company Property Checklist: Itemized list of company property to be returned

4. Appendix 1 - Release Agreement: If applicable, the formal release agreement requiring signature

5. Appendix 2 - Outplacement Services Details: If applicable, information about career transition support services

6. Appendix 3 - Relevant Employment Policies: Copies of relevant company policies affecting 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

Jurisdiction

Canada

Publisher

Genie AI

Document Type

Cancellation Letter

Sector

Sales

Cost

Free to use

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