The Termination of Service agreement is a crucial document used in Canadian employment contexts when ending an employment relationship, whether through resignation, dismissal, or mutual agreement. It serves as a comprehensive record of all termination terms and conditions, ensuring compliance with both federal and provincial employment standards legislation. This document is essential for protecting both employer and employee interests by clearly outlining final compensation, benefit arrangements, continuing obligations, and release of claims. It must be tailored to reflect specific provincial requirements, as employment law varies across Canadian jurisdictions, and should incorporate mandatory notice periods, severance calculations, and other statutory obligations. The agreement is particularly important for risk management and maintaining clear documentation of the termination process.
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1. Parties: Identification of the employer and employee, including legal names and addresses
2. Background: Brief context of the employment relationship, including start date and position
3. Definitions: Key terms used throughout the agreement
4. Termination Date: Clear statement of the effective date of termination
5. Final Pay and Benefits: Details of final salary, vacation pay, and treatment of benefits
6. Company Property: Requirements for return of company property and documents
7. Continuing Obligations: Ongoing confidentiality and intellectual property obligations
8. Release: Mutual release of claims between parties
9. Reference and Communication: Agreement on how termination will be communicated and reference provisions
10. Governing Law: Specification of applicable Canadian jurisdiction
11. Acknowledgment: Employee acknowledgment of understanding and voluntary acceptance
12. Execution: Signature blocks and date of agreement
1. Severance Package: Details of any severance payment beyond statutory minimums - include when offering additional severance
2. Non-Competition: Post-employment competition restrictions - include for senior roles or when required by original employment agreement
3. Non-Solicitation: Restrictions on soliciting employees or customers - include for client-facing or management roles
4. Outplacement Services: Details of career transition support - include when offering as part of severance package
5. Stock Options/RSUs: Treatment of outstanding equity compensation - include when employee has equity-based compensation
6. Retirement Benefits: Special provisions for retirement situations - include for retirement-based terminations
7. Medical Coverage Extension: Details of extended health benefits - include when offering continued benefits
8. Legal Counsel Acknowledgment: Confirmation of independent legal advice - include for complex terminations or senior executives
1. Schedule A - Financial Statement: Detailed breakdown of all financial components including final pay, severance, benefits, and deductions
2. Schedule B - Company Property Checklist: Itemized list of company property to be returned
3. Schedule C - Benefit Details: Comprehensive information about benefit continuation or termination
4. Schedule D - Reference Letter: Standard form of reference letter if agreed upon
5. Appendix 1 - Statutory Requirements: Summary of relevant statutory entitlements and requirements
6. Appendix 2 - Release Terms: Detailed terms of the mutual release
Relevant legal definitions
Agreement
Company
Confidential Information
Effective Date
Employee
Employment Period
Final Wages
Intellectual Property
Notice Period
Company Property
Release
Severance Payment
Statutory Entitlements
Termination Date
Cause
Benefits
Accrued Obligations
Continuing Obligations
Proprietary Information
Trade Secrets
Compensation
Company Group
Competitive Business
Restrictive Covenants
Work Product
Governing Law
Claims
Consideration
Company
Confidential Information
Effective Date
Employee
Employment Period
Final Wages
Intellectual Property
Notice Period
Company Property
Release
Severance Payment
Statutory Entitlements
Termination Date
Cause
Benefits
Accrued Obligations
Continuing Obligations
Proprietary Information
Trade Secrets
Compensation
Company Group
Competitive Business
Restrictive Covenants
Work Product
Governing Law
Claims
Consideration
Clauses
Termination Notice
Final Compensation
Severance Pay
Benefit Continuation
Confidentiality
Non-Competition
Non-Solicitation
Return of Property
Release of Claims
Intellectual Property
References
Non-Disparagement
Cooperation
Survival
Governing Law
Entire Agreement
Amendment
Severability
Independent Legal Advice
Acknowledgment
General Release
Waiver
Assignment
Notices
Counterparts
Final Compensation
Severance Pay
Benefit Continuation
Confidentiality
Non-Competition
Non-Solicitation
Return of Property
Release of Claims
Intellectual Property
References
Non-Disparagement
Cooperation
Survival
Governing Law
Entire Agreement
Amendment
Severability
Independent Legal Advice
Acknowledgment
General Release
Waiver
Assignment
Notices
Counterparts
Relevant Industries
Technology
Financial Services
Manufacturing
Retail
Healthcare
Professional Services
Education
Construction
Transportation
Energy
Telecommunications
Mining
Agriculture
Real Estate
Non-Profit
Relevant Teams
Human Resources
Legal
Compliance
Employee Relations
Risk Management
Operations
Executive Leadership
Administration
Talent Management
Relevant Roles
HR Manager
HR Director
Legal Counsel
Employment Lawyer
HR Business Partner
HR Specialist
Compliance Officer
Department Manager
Operations Director
Chief Human Resources Officer
Employee Relations Manager
HR Coordinator
Benefits Administrator
Talent Management Director
Risk Management Officer
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