The Employee Release of Liability agreement is a crucial risk management tool used in Canadian employment relationships when an employer seeks to prevent future legal claims from an employee. This document is typically used during employee departures, settlements of workplace disputes, or following workplace incidents. The agreement must carefully balance the employer's desire for comprehensive liability protection with the limitations imposed by Canadian employment law, which prohibits the waiver of certain statutory rights. When properly drafted, an Employee Release of Liability provides clarity on which claims are being released, includes appropriate consideration, and ensures compliance with both federal and provincial employment standards. The document should be customized based on the specific circumstances, nature of employment, and applicable provincial jurisdiction within Canada.
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1. Parties: Identifies the employer and employee by their legal names and addresses
2. Background: Describes the employment relationship context and circumstances leading to the release
3. Definitions: Defines key terms used throughout the agreement, including 'Claims', 'Released Parties', and 'Effective Date'
4. Consideration: Specifies the consideration being provided in exchange for the release
5. Release and Discharge: Details the specific claims, rights, and causes of action being released by the employee
6. Exceptions to Release: Explicitly states which rights and claims cannot be released under applicable law
7. No Admission of Liability: States that the agreement does not constitute an admission of liability by either party
8. Confidentiality: Outlines the confidentiality obligations regarding the terms of the release
9. Complete Agreement: Confirms that the document represents the entire agreement between the parties
10. Governing Law: Specifies that the agreement is governed by Canadian law and the applicable province
11. Execution: Formal signing section with date and signature blocks for all parties
1. Non-Disparagement: Includes mutual or one-way obligations not to make negative statements about the other party. Used when there are concerns about potential reputational damage
2. Return of Company Property: Details the return of company assets and information. Include when the employee had access to sensitive materials or valuable company property
3. Ongoing Obligations: References continuing obligations from the employment agreement (like non-compete clauses). Include when original employment agreement had post-employment restrictions
4. Future Cooperation: Requires employee's assistance in future matters related to their employment. Include when employee had key role or knowledge important for ongoing business/legal matters
5. Tax Indemnification: Addresses tax implications of any payments. Include when substantial monetary consideration is involved
6. Reference Letter: Details about future employment references. Include when part of negotiated settlement
7. Revocation Period: Provides time period for employee to revoke acceptance. Include when required by applicable law or when dealing with older workers
1. Schedule A - Released Claims: Detailed list of specific claims being released
2. Schedule B - Settlement Payment Details: Breakdown of any monetary consideration, including payment timing and method
3. Schedule C - Independent Legal Advice Certificate: Certificate from employee's legal counsel confirming independent legal advice was received
4. Schedule D - Resignation Letter: Form of resignation letter, if applicable
5. Appendix 1 - Company Property Checklist: List of company property to be returned
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Construction
Healthcare
Technology
Financial Services
Retail
Transportation
Education
Mining
Oil and Gas
Professional Services
Hospitality
Agriculture
Entertainment
Sports and Recreation
Relevant Teams
Human Resources
Legal
Risk Management
Compliance
Operations
Executive Leadership
Administration
Payroll
Employee Relations
Health and Safety
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Department Manager
Supervisor
Production Worker
Office Administrator
Sales Representative
Technical Specialist
Project Manager
Machine Operator
Customer Service Representative
Professional Staff
Contract Worker
Seasonal Employee
Executive Assistant
Field Worker
Laboratory Technician
Warehouse Worker
Driver
Site Manager
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