The Independent Contractor Termination Letter is a crucial document used when a company needs to formally end its relationship with an independent contractor in Canada. This document is essential for businesses operating under Canadian federal and provincial laws, providing a clear record of the termination decision and associated terms. It should be used when concluding any independent contractor relationship, whether due to project completion, strategic changes, or other business reasons. The letter typically includes references to the original agreement, termination date, final payment details, and post-termination obligations. It helps ensure compliance with Canadian contract law while protecting both parties' interests and maintaining professional standards. This document is particularly important for risk management and maintaining clear business records.
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1. Letter Header and Date: Company letterhead, current date, and formal addressing of the contractor
2. Contract Reference: Clear reference to the original independent contractor agreement including its effective date
3. Termination Statement: Clear and direct statement of termination, including the effective date and reference to any applicable termination clause from the original agreement
4. Reason for Termination: Brief, professional explanation of termination if appropriate (e.g., project completion, contract term end)
5. Final Payment Terms: Details of final payment, including timing and any outstanding invoice requirements
6. Return of Property: Requirements for returning company property, equipment, or documents
7. Closing Statement: Professional closing with acknowledgment of service and future cooperation if applicable
8. Signature Block: Space for authorized representative's signature and contractor acknowledgment
1. Ongoing Project Transition: Include when there are active projects that need to be transferred or completed
2. Confidentiality Reminder: Include when contractor had access to sensitive information or trade secrets
3. Reference Provision: Include when agreeing to provide future references
4. Non-Disparagement: Include when there's a desire to maintain mutual professional reputation
5. Post-Termination Obligations: Include when there are specific ongoing obligations like non-compete or non-solicitation
6. Dispute Resolution: Include when there are potential areas of disagreement that need to be addressed
7. Tax Reporting: Include when there are specific tax documentation requirements to be completed
1. Schedule A - Final Payment Calculation: Detailed breakdown of final payment including any outstanding fees, expenses, or deductions
2. Schedule B - Project Status Report: Summary of status for all ongoing projects and transition requirements
3. Schedule C - Company Property Checklist: Itemized list of company property to be returned
4. Appendix 1 - Contractor Acknowledgment Form: Form for contractor to acknowledge receipt and agreement to termination terms
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