The End of Term Letter is a crucial document in Canadian employment law, used to formally document the conclusion of an employment relationship. It serves as an official record of the termination terms and conditions, ensuring compliance with federal and provincial employment standards. This document is typically used when an employment relationship is ending, whether through termination without cause, retirement, or the conclusion of a fixed-term contract. The letter includes essential information such as the termination date, final pay calculations, benefit details, and any post-employment obligations. It's particularly important in Canada due to specific legal requirements around employment termination, including notice periods, severance calculations, and statutory entitlements. The document helps protect both employer and employee interests by clearly documenting all aspects of the employment conclusion.
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1. Opening and Address Block: Formal business letter heading including date, recipient's name, title, and address
2. Confirmation of Termination: Clear statement of employment termination, including effective date and position held
3. Final Pay and Benefits: Detailed breakdown of final salary, vacation pay, and any other outstanding payments
4. Company Property: List of company property to be returned and process for return
5. Confidentiality Reminder: Reminder of ongoing confidentiality obligations post-employment
6. Reference Policy: Information about company's policy on providing references
7. Contact Information: Details for future correspondence and final documentation
8. Closing: Professional closing with signature block for authorized company representative
1. Severance Package Details: Used when offering additional severance beyond statutory minimums
2. Release Agreement Reference: Include when a separate release agreement needs to be signed
3. Post-Employment Restrictions: Reminder of non-compete or non-solicitation obligations, if applicable
4. Transition Responsibilities: Include when employee needs to complete specific handover tasks
5. Benefits Continuation: Details of any benefits extending beyond termination date
6. Outplacement Services: Information about career transition services if provided
7. Stock Options/Equity: Treatment of any outstanding stock options or equity compensation
1. Schedule A - Payment Calculation: Detailed breakdown of final payment including salary, vacation pay, severance, and statutory deductions
2. Schedule B - Benefits Summary: Comprehensive list of benefits and their termination or continuation dates
3. Schedule C - Company Property Checklist: Itemized list of company property to be returned
4. Appendix 1 - Relevant Employment Agreement Excerpts: Key clauses from employment agreement that remain in effect post-termination
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