The Independent Contractor Notice Of Termination is a crucial document in Canadian business operations when ending a contractor relationship. It serves as the formal mechanism for communicating the termination decision, whether due to project completion, changed business needs, or performance issues. This document must comply with both federal and provincial Canadian regulations while adhering to the original contract terms. It typically includes specific termination dates, final payment details, property return requirements, and surviving obligations. The notice should be carefully drafted to maintain professional relationships while protecting the company's interests and avoiding potential misclassification claims under Canadian employment law. It's particularly important in protecting both parties' interests and ensuring a clear record of the termination process.
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1. Letterhead and Date: Company letterhead, current date, and reference number if applicable
2. Recipient Details: Full name and address of the contractor, their business name if applicable
3. Re: Line: Clear subject line referencing the contract being terminated and its date
4. Notice of Termination: Clear statement of termination and reference to the relevant contract clause allowing for termination
5. Effective Date: Specific termination date and whether notice period applies
6. Final Payment Details: Information about final payments, including outstanding invoices and payment timing
7. Return of Property: Requirements for returning company property, data, or materials
8. Continuing Obligations: Reminder of surviving contract terms (confidentiality, non-compete, etc.)
9. Next Steps: Clear instructions on handover process and final deliverables
10. Signature Block: Company representative's name, title, and signature
1. Cause Statement: Used when termination is for cause, detailing specific breaches or reasons
2. Transition Period: Include when a handover period is required for knowledge transfer or project completion
3. Release Agreement Reference: Used when a separate release agreement will be provided for signature
4. Client/Project Transition: Include when contractor has direct client relationships that need transition
5. Expense Reimbursement: Include if there are outstanding expense claims to be processed
6. Intellectual Property Confirmation: Used when specific IP assignments need to be confirmed or completed
1. Outstanding Deliverables List: Detailed list of work items to be completed before termination
2. Company Property Checklist: Itemized list of company assets to be returned
3. Final Payment Calculation: Breakdown of final payment including any pro-rated fees or expenses
4. Project Status Report: Summary of status for all ongoing projects requiring handover
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Relevant Teams
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Procurement
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Finance
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Compliance
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Project Manager
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