A Release Letter From Employer is utilized when an employment relationship is being terminated, whether through layoff, mutual agreement, or other circumstances. This document is crucial in Canadian employment contexts as it provides legal protection for employers while ensuring fair treatment of employees under applicable federal and provincial laws. The letter typically includes details about final compensation, benefits, severance packages, and continuing obligations such as confidentiality. It specifically requires the employee to release the employer from potential legal claims in exchange for the consideration provided. The document must be carefully drafted to ensure compliance with Canadian employment standards, human rights legislation, and common law principles, while also addressing any specific provincial requirements where the employment relationship exists. It serves as both a record of the termination terms and a legal safeguard against future disputes.
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1. Letterhead and Date: Company letterhead, current date, and formal business letter formatting
2. Addressee Details: Employee's full name and address
3. Salutation: Formal greeting to the employee
4. Confirmation of Employment End: Clear statement of employment termination or resignation, including relevant dates
5. Financial Terms: Detailed breakdown of all payments, including salary, severance, benefits, vacation pay, and other compensation
6. Release Terms: Specific description of claims being released and the scope of the release
7. Consideration Statement: Clear statement of the consideration being provided in exchange for the release
8. Confidentiality Obligations: Overview of ongoing confidentiality requirements
9. Return of Company Property: Requirements regarding return of company assets and materials
10. References: Statement about the company's reference policy and handling of employment verification requests
11. Acknowledgment: Statement confirming the employee has read and understood the terms
12. Signature Block: Space for signatures of both employer and employee, with date lines
1. Non-Disparagement Clause: Include when mutual non-disparagement is desired between parties
2. Ongoing Cooperation: Include when employee's assistance may be needed for transition or future matters
3. Benefits Continuation: Include when extending health or other benefits beyond termination date
4. Stock Options/RSUs: Include when employee has outstanding equity compensation that needs to be addressed
5. Re-Employment Restrictions: Include when there are limitations on future employment with the company
6. Independent Legal Advice: Include when encouraging or requiring the employee to seek independent legal counsel
7. Outplacement Services: Include when providing career transition assistance
8. Tax Indemnification: Include when complex compensation arrangements necessitate tax clarification
1. Schedule A - Calculation of Payments: Detailed breakdown of all financial components being paid
2. Schedule B - Benefits Summary: Details of any continuing or terminating benefits
3. Schedule C - Company Property Checklist: List of company items to be returned
4. Appendix 1 - Confidential Information Definition: Detailed description of what constitutes confidential information
5. Appendix 2 - Previously Signed Agreements: List of relevant agreements that remain in effect post-employment
Relevant legal definitions
Company
Employee
Effective Date
Termination Date
Released Parties
Claims
Confidential Information
Consideration
Severance Payment
Company Property
Intellectual Property
Continuing Obligations
Statutory Entitlements
Benefits
Release Period
Cause
Applicable Law
Governing Jurisdiction
Non-Disparagement
Severance Period
Outstanding Obligations
Compensation
Accrued Vacation Pay
Personal Information
Trade Secrets
Proprietary Rights
Reference Period
Employee
Effective Date
Termination Date
Released Parties
Claims
Confidential Information
Consideration
Severance Payment
Company Property
Intellectual Property
Continuing Obligations
Statutory Entitlements
Benefits
Release Period
Cause
Applicable Law
Governing Jurisdiction
Non-Disparagement
Severance Period
Outstanding Obligations
Compensation
Accrued Vacation Pay
Personal Information
Trade Secrets
Proprietary Rights
Reference Period
Clauses
Termination
Release
Consideration
Confidentiality
Non-Disparagement
Return of Property
Severance
Benefits
Tax Implications
Final Wages
Vacation Pay
Continuing Obligations
Reference Provision
Intellectual Property
Independent Legal Advice
Acknowledgment
Governing Law
Severability
Entire Agreement
Amendment
Survival
Notice
Cooperation
Non-Admission
Revocation Period
Release
Consideration
Confidentiality
Non-Disparagement
Return of Property
Severance
Benefits
Tax Implications
Final Wages
Vacation Pay
Continuing Obligations
Reference Provision
Intellectual Property
Independent Legal Advice
Acknowledgment
Governing Law
Severability
Entire Agreement
Amendment
Survival
Notice
Cooperation
Non-Admission
Revocation Period
Relevant Industries
Technology
Financial Services
Manufacturing
Retail
Healthcare
Professional Services
Education
Construction
Mining
Energy
Telecommunications
Transportation
Hospitality
Real Estate
Non-Profit
Government
Media and Entertainment
Agriculture
Relevant Teams
Human Resources
Legal
Employee Relations
Compliance
Corporate Services
People Operations
Talent Management
Benefits Administration
Relevant Roles
Human Resources Director
Legal Counsel
HR Manager
Employment Lawyer
HR Business Partner
Chief Human Resources Officer
HR Administrator
Corporate Counsel
Employee Relations Manager
HR Coordinator
Talent Management Director
Legal Operations Manager
HR Compliance Manager
Benefits Administrator
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