The Termination of Contract of Service is a crucial legal document used in Canadian employment law when ending an employment relationship. It is essential when an employer needs to formally document the termination of an employee's services, whether the termination is with or without cause, through mutual agreement, or due to redundancy. The document must comply with both federal and provincial employment standards, including minimum notice requirements, severance obligations, and human rights considerations. It typically includes details about final payments, benefit continuations, property return, and ongoing obligations. This document is particularly important for risk management and legal compliance, as it helps prevent future disputes by clearly documenting the terms of separation and any mutual releases between the parties.
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1. Parties: Identification of the employer and employee, including full legal names and addresses
2. Background: Brief context of the employment relationship, including start date and position
3. Definitions: Definitions of key terms used in the termination agreement
4. Termination Date: Clear statement of the effective date of termination
5. Reason for Termination: Statement of the grounds for termination (if applicable)
6. Notice Period: Details of the notice period provided or payment in lieu of notice
7. Final Payment Details: Breakdown of final salary, vacation pay, and other entitlements
8. Return of Company Property: Requirements for returning company assets and property
9. Confidentiality Obligations: Ongoing obligations regarding confidential information
10. Release of Claims: Mutual release of claims between parties
11. Governing Law: Specification that the agreement is governed by Canadian law
12. Execution: Signature blocks and date of execution
1. Severance Package: Details of any additional severance payment beyond statutory requirements
2. Benefits Continuation: Terms for continuation of health benefits or other employment benefits
3. Reference Letter: Terms regarding the provision of employment references
4. Non-Disparagement: Mutual agreements not to make negative statements about each other
5. Outplacement Services: Details of any career transition support provided
6. Non-Competition: Post-employment competitive restrictions, if applicable and enforceable
7. Non-Solicitation: Restrictions on soliciting employees or customers
8. Cooperation in Transition: Terms for employee assistance in transitioning duties
9. Stock Options/Equity: Treatment of any outstanding stock options or equity compensation
1. Schedule A - Final Payment Calculation: Detailed breakdown of all final payments including salary, benefits, and statutory entitlements
2. Schedule B - Company Property List: Itemized list of company property to be returned
3. Schedule C - Benefit Details: Details of any continuing benefits and their duration
4. Schedule D - Release Agreement: Full text of the mutual release agreement
5. Appendix 1 - Statutory Requirements: Reference to applicable employment standards requirements
6. Appendix 2 - Confidential Information: Detailed description of confidential information covered by ongoing obligations
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