The Employee Release Agreement is a crucial document in Canadian employment law, used when an employment relationship is being terminated, whether through mutual agreement, restructuring, or other circumstances. This agreement serves multiple purposes: it provides clarity on the terms of separation, documents the financial compensation and benefits the employee will receive, and establishes mutual releases to prevent future legal claims. The document must comply with both federal and provincial employment standards, including minimum notice periods and severance requirements specific to Canadian jurisdictions. It's particularly important in situations involving senior employees, sensitive departures, or when significant severance packages are offered. The agreement typically includes provisions for confidentiality, non-disparagement, and return of company property, while potentially addressing post-employment obligations. It's essential that the agreement be drafted in compliance with applicable Canadian employment standards legislation, human rights codes, and privacy laws to ensure enforceability.
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1. Parties: Identification of the employer and employee, including legal names and addresses
2. Background: Brief recital of employment history, termination context, and purpose of the agreement
3. Definitions: Key terms used throughout the agreement including 'Effective Date', 'Released Claims', and 'Termination Date'
4. Termination of Employment: Confirmation of employment termination date and immediate obligations
5. Severance Payment: Details of all financial compensation, including timing and method of payment
6. Statutory Deductions: Confirmation that all payments are subject to applicable tax and statutory deductions
7. Release and Discharge: Comprehensive release of claims against employer and related entities
8. Confidentiality: Obligations regarding confidentiality of agreement terms and company information
9. Return of Property: Requirements for returning company property and documents
10. Non-Disparagement: Mutual commitments to refrain from making negative statements
11. Acknowledgements: Employee's confirmation of understanding, independent legal advice, and voluntary execution
12. General Provisions: Standard clauses including governing law, entire agreement, and severability
13. Execution: Signature blocks and date of agreement
1. Reference Letter: Terms regarding the provision of employment references, used when agreed as part of the settlement
2. Non-Competition: Post-employment competitive restrictions, included when necessary and legally enforceable
3. Non-Solicitation: Restrictions on soliciting employees or customers, included when business protection is required
4. Ongoing Benefits: Details of any continued health or insurance benefits, included when extending benefit coverage
5. Outplacement Services: Terms of career transition support, included when such services are offered
6. Stock Options/RSUs: Treatment of outstanding equity compensation, included when employee has equity-based compensation
7. Cooperation: Requirements for post-termination assistance, included when ongoing cooperation may be needed
8. Re-Employment: Terms regarding future employment possibilities, included when addressing potential re-hiring
9. Certificate of Independent Legal Advice: Formal confirmation of legal consultation, included when required by company policy or circumstances
1. Schedule A - Severance Calculation: Detailed breakdown of severance payment components and calculations
2. Schedule B - Company Property Checklist: Itemized list of company property to be returned
3. Schedule C - Benefits Continuation Details: Specific terms and duration of continued benefits coverage
4. Schedule D - Outstanding Equity Awards: List of stock options, RSUs, or other equity compensation and their treatment
5. Appendix 1 - Reference Letter: Agreed form of employment reference letter
6. Appendix 2 - Independent Legal Advice Certificate: Form for lawyer's certification of provided legal advice
Relevant legal definitions
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Relevant Industries
Technology
Financial Services
Manufacturing
Retail
Healthcare
Professional Services
Education
Construction
Energy
Telecommunications
Mining
Transportation
Real Estate
Hospitality
Media and Entertainment
Non-Profit
Relevant Teams
Human Resources
Legal
Finance
Operations
Sales
Marketing
Information Technology
Research and Development
Customer Service
Administration
Executive Leadership
Product Development
Quality Assurance
Project Management Office
Business Development
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Chief Operating Officer
Director
Senior Manager
Manager
Supervisor
Team Lead
Professional Staff
Technical Specialist
Sales Representative
Administrative Staff
Human Resources Manager
Department Head
Regional Manager
Project Manager
Account Executive
Operations Manager
General Counsel
Executive Assistant
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