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End Of Term Letter for Canada

End Of Term Letter Template for Canada

A formal document used in Canadian employment law to officially communicate and document the termination of employment. This letter serves multiple purposes: it confirms the end date of employment, outlines final compensation details, explains benefit termination or continuation, reminds the employee of any ongoing obligations, and documents the return of company property. The letter must comply with both federal and provincial employment standards legislation, ensuring all statutory requirements for notice, pay, and benefits are met. It often serves as a key document in establishing clear communication and maintaining proper documentation of the employment termination process.

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End Of Term Letter

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What is a End Of Term Letter?

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.

What sections should be included in a End Of Term Letter?

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

What sections are optional to include in a End Of Term Letter?

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

What schedules should be included in a End Of Term Letter?

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

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Document Type

Termination Letter

Cost

Free to use
Relevant legal definitions




















Clauses




















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