The Release Of Liability Employment Termination agreement is a critical document used in Canadian employment law contexts when formally concluding an employment relationship. It is typically implemented during voluntary resignations, mutual separations, or terminations without cause, where both parties seek to achieve a clean break and mitigate future legal risks. The document must comply with both federal and provincial employment standards, including the Canada Labour Code and provincial Employment Standards Acts. It includes essential elements such as termination details, severance payments, benefits continuation, and comprehensive releases of liability. This agreement is particularly important in situations where employers wish to obtain certainty against future claims while providing employees with negotiated termination packages that exceed statutory minimums. The document must be carefully drafted to ensure enforceability under Canadian law, including clear consideration for the release and confirmation that statutory minimums are met or exceeded.
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1. Parties: Identification of the employer and employee, including legal names and addresses
2. Background: Brief history of employment relationship, including start date, position, and context of termination
3. Definitions: Key terms used throughout the agreement including 'Released Parties', 'Claims', and 'Effective Date'
4. Termination Date: Clear statement of the employment termination date and final day of work
5. Consideration: Details of all payments and benefits being provided in exchange for the release
6. Release of Claims: Comprehensive release of legal claims against the employer and related parties
7. Confidentiality: Obligations regarding confidential information and terms of the agreement
8. Return of Property: Requirements for returning company property and documents
9. Non-Disparagement: Mutual or one-way agreement not to make negative statements
10. Tax Implications: Acknowledgment of tax responsibilities for payments received
11. Independent Legal Advice: Acknowledgment of opportunity to seek independent legal counsel
12. Governing Law: Specification of applicable Canadian jurisdiction
13. Execution: Signature blocks and date of agreement
1. Reference Letter: Terms regarding the provision of employment references, used when agreed upon as part of the settlement
2. Ongoing Obligations: Reference to continuing obligations from employment agreement (e.g., non-compete), included if applicable
3. Benefits Continuation: Details of extended benefits coverage, if offered as part of the package
4. Outplacement Services: Description of career transition services if provided
5. Re-Employment: Terms regarding potential future employment with the company, if relevant
6. Cooperation: Requirements for transitioning work or cooperating in legal matters, if needed
7. Mutual Release: If both parties are releasing claims against each other
8. Stock Options/RSUs: Treatment of outstanding equity compensation, if applicable
9. Severability: Clause ensuring remaining provisions survive if any provision is found invalid
1. Schedule A - Consideration Details: Detailed breakdown of all financial and non-financial consideration
2. Schedule B - Company Property Checklist: List of company items to be returned
3. Schedule C - Continuing Obligations: Copy or summary of relevant provisions from employment agreement that survive termination
4. Schedule D - Benefits Continuation Details: Specific information about extended benefits coverage
5. Appendix 1 - Reference Letter: Agreed form of reference letter, if applicable
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