Document background
A Company Separation Agreement is essential when formally ending an employment relationship in Canada, whether through mutual agreement, resignation, or termination without cause. This document serves as a comprehensive record of all separation terms, protecting both employer and employee interests while ensuring compliance with Canadian federal and provincial employment laws. It typically includes details about severance payments, benefits continuation, confidentiality requirements, and releases of claims. The agreement is particularly important for managing risk, ensuring clear communication, and preventing future disputes. It must be carefully drafted to comply with minimum standards set by applicable legislation, including the Canada Labour Code for federally regulated employers or provincial employment standards for provincially regulated employers. The agreement can be customized based on factors such as employee seniority, position, and specific circumstances of the separation.
