The Redundancy Letter is a crucial document used in Canadian employment law when terminating employees due to business restructuring, economic conditions, or organizational changes. It must comply with both federal legislation (such as the Canada Labour Code) and provincial employment standards, which vary by jurisdiction. The document serves multiple purposes: formally notifying the employee of their termination, explaining the reason for redundancy, detailing their entitlements (including notice period, severance pay, and benefits), and outlining next steps. It should be drafted carefully to ensure legal compliance while maintaining professionalism and showing appropriate consideration for the affected employee. The letter often forms part of a larger termination package and may reference additional documents such as release agreements or benefit continuation forms.
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1. Opening and Identification: Date, employee's name, address, and formal letter opening
2. Notice of Termination: Clear statement of employment termination and effective date
3. Reason for Redundancy: Brief explanation of the business circumstances leading to the redundancy
4. Notice Period Details: Information about the notice period or payment in lieu of notice
5. Final Payment Information: Details of final salary, vacation pay, and statutory entitlements
6. Return of Company Property: List of items to be returned and process for return
7. Continuing Obligations: Reference to ongoing confidentiality and other relevant obligations
8. Support Available: Information about outplacement services or job search support if provided
9. Next Steps: Clear instructions on what the employee needs to do next
10. Closing: Signature block and contact information for questions
1. Extended Benefits Coverage: Details of any continued health benefits or insurance coverage, used when offering extended benefits
2. Reference Letter Offer: Information about providing employment references, included when company policy allows
3. Severance Enhancement: Details of any enhanced severance package beyond statutory minimums, used for senior roles or long service
4. Non-Competition Reminder: Reminder of existing non-compete obligations, included for senior roles or when applicable
5. Release Agreement: Reference to and explanation of any accompanying release agreement, used when offering enhanced packages
6. Retirement Benefits: Information about pension or retirement benefits, included for eligible employees
7. Stock Options/RSUs: Treatment of outstanding equity compensation, included for employees with such benefits
1. Schedule A - Payment Calculation: Detailed breakdown of final payment including salary, notice pay, severance, and statutory entitlements
2. Schedule B - Benefits Summary: Comprehensive list of benefits and their continuation or termination dates
3. Schedule C - Company Property Checklist: Itemized list of company property to be returned
4. Schedule D - Important Contacts: List of relevant contact information for HR, benefits providers, and support services
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