Employee Release Form - Canada

Employee Release Form for Canada

Employee Release Form Template for Canada

A Canadian Employee Release Form is a legally binding document used to formalize the termination of employment and settlement of any potential claims between an employer and employee. This document, governed by Canadian federal and provincial employment laws, outlines the terms of separation, including any settlement payments, benefits continuation, and mutual releases of claims. It ensures compliance with Canadian employment standards legislation, human rights laws, and common law principles while providing legal protection for both parties. The agreement typically includes provisions for confidentiality, non-disparagement, and the return of company property, while addressing specific requirements under Canadian jurisdiction regarding consideration, cooling-off periods, and independent legal advice.

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What is a Employee Release Form?

The Employee Release Form is a critical document in Canadian employment law, used when an employment relationship is terminated either through mutual agreement, layoff, or dismissal. This document serves multiple purposes: it provides clarity on the terms of separation, protects both parties from future legal claims, and ensures compliance with Canadian federal and provincial employment legislation. The form typically includes details about severance payments, benefits continuation, and releases of claims, while addressing specific Canadian legal requirements such as minimum statutory entitlements and reasonable notice periods. It's essential for risk management and proper documentation of employment terminations, particularly in situations involving severance packages or potential disputes. The document must be carefully drafted to ensure enforceability under Canadian law and typically requires review by legal counsel to ensure all provincial and federal requirements are met.

What sections should be included in a Employee Release Form?

1. Parties: Identification of the employer and employee, including legal names and addresses

2. Background: Brief overview of the employment relationship, termination date, and context for the release

3. Definitions: Key terms used throughout the agreement, including 'Released Parties', 'Claims', and 'Consideration'

4. Consideration: Details of the settlement amount or other consideration being provided in exchange for the release

5. Release and Discharge: Comprehensive release of all claims, demands, and causes of action

6. Confidentiality: Terms regarding confidentiality of the agreement and settlement terms

7. Non-Disparagement: Mutual obligations to refrain from making negative statements about each other

8. Return of Property: Confirmation of return of all company property, documents, and information

9. Acknowledgments: Employee's confirmation of understanding, opportunity for legal counsel, and voluntary execution

10. Governing Law: Specification of applicable jurisdiction and governing law

11. Execution: Signature blocks and date of execution

What sections are optional to include in a Employee Release Form?

1. Reference Letter: Terms regarding the provision of employment references, used when agreed as part of the settlement

2. Ongoing Obligations: Reference to continuing obligations from employment agreement (e.g., non-compete, non-solicit), included if applicable

3. Tax Indemnity: Provisions regarding tax treatment of payments and indemnification, used for larger settlements

4. Re-Employment: Restrictions on future employment with the company, used in cases where this is a concern

5. Benefits Continuation: Details of any continued benefits coverage, included if part of the settlement

6. Cooperation: Requirements for future cooperation in legal proceedings or transitions, used when needed

7. Section 7 DSA Waiver: Specific waiver under Section 7 of the Divorce Support Act if applicable to family support obligations

8. Independent Legal Advice Certificate: Formal certification of independent legal advice, used in complex or high-value settlements

What schedules should be included in a Employee Release Form?

1. Schedule A - Settlement Payment Details: Breakdown of settlement amounts and payment terms

2. Schedule B - Resignation Letter: Form of resignation letter if applicable

3. Schedule C - Reference Letter: Agreed form of reference letter if applicable

4. Appendix 1 - Company Property Checklist: List of company property to be returned

5. Appendix 2 - Continuing Obligations Extract: Relevant excerpts from employment agreement regarding continuing obligations

Authors

Alex Denne

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

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What is a Employee Release Form?

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What schedules should be included in a Employee Release Form?

Authors

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