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A Letter of Termination of Service is a crucial document used in Canadian business environments to formally end an employment relationship. It must be carefully drafted to comply with federal and provincial employment standards, including the Canada Labour Code and relevant provincial employment acts. This document is typically issued when an employer decides to terminate an employee's services, whether with or without cause, and must include specific information about notice periods, final compensation, benefit continuation, and return of company property. The letter serves multiple purposes: it provides official documentation of the termination, outlines the terms of separation, ensures legal compliance, and helps manage potential risks associated with employment termination. Given Canada's robust employee protection framework, the letter must be drafted with careful attention to both statutory requirements and common law principles.

1. Date and Address Block: Current date and recipient's complete contact information

2. Subject Line: Clear indication that this is a termination notice

3. Opening Statement: Direct statement of termination, including effective date

4. Reason for Termination: Brief, factual statement of termination reason if applicable (with careful legal consideration)

5. Notice Period and Final Pay: Details of notice period or pay in lieu of notice, final salary, and other compensation

6. Company Property: List of company property to be returned and process for return

7. Benefits Information: Information about continuation or termination of benefits

8. Final Documentation: Reference to enclosed documents such as ROE and tax forms

9. Contact Information: Who to contact for questions or further information

10. Closing and Signature: Professional closing, signature block of authorized representative