Employee Release Of Claims

Employee Release Of Claims Template for Canada

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Key Requirements PROMPT example:

"I need an Employee Release of Claims agreement for a tech company employee being laid off as part of a restructuring, with specific clauses about confidentiality of trade secrets and return of company equipment, to be effective March 15, 2025."

Document background

An Employee Release of Claims agreement is a crucial document used in Canadian employment law when terminating an employment relationship, whether through mutual agreement, layoff, or other circumstances. It is designed to protect employers from future legal claims while ensuring employees receive fair compensation or benefits in exchange for their release. The document must comply with both federal and provincial employment standards, including minimum notice periods and severance requirements. It typically follows termination discussions or negotiations and should be provided with adequate time for the employee to seek independent legal advice. The agreement is particularly important in situations involving severance packages, restructuring, or potential disputes, and must be carefully drafted to ensure enforceability under Canadian law.

Suggested Sections

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

2. Background: Context of employment relationship, termination/resignation circumstances, and purpose of the release

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

4. Consideration: Details of the payment or benefits being provided in exchange for the release

5. Release and Discharge: Comprehensive description of claims being released and parties being released

6. No Admission of Liability: Statement that the agreement does not constitute admission of wrongdoing by either party

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

8. Tax Implications: Statement regarding responsibility for tax consequences of any payments

9. Confidentiality: Requirements regarding confidentiality of the agreement terms

10. Entire Agreement: Confirmation that this document represents the complete agreement between parties

11. Governing Law: Specification that the agreement is governed by Canadian law and applicable province

12. Execution: Signature blocks and date of execution

Optional Sections

1. Non-Disparagement: Mutual or one-way obligations regarding making negative statements, used when reputation protection is important

2. Continuing Obligations: Reference to surviving terms from employment agreement (e.g., confidentiality, IP), used when original employment agreement had such terms

3. Reference Letter: Terms regarding employment references, used when agreed as part of separation

4. Return of Property: Requirements for returning company property, used when employee has company assets

5. Revocation Period: Period during which employee can revoke acceptance, used when required by law or agreed

6. Future Cooperation: Terms regarding assistance with transition or future inquiries, used when ongoing cooperation might be needed

7. Re-Employment: Terms regarding future employment eligibility, used when company wants to prevent future re-hiring

Suggested Schedules

1. Schedule A - Consideration Details: Detailed breakdown of severance, benefits, or other compensation being provided

2. Schedule B - Outstanding Claims: List of specific claims or disputes being resolved, if any exist

3. Schedule C - Continuing Benefits: Details of any benefits continuing post-employment

4. Appendix 1 - Reference Letter: Agreed form of reference letter, if applicable

5. Appendix 2 - Company Property Checklist: List of company property to be returned, if applicable

Authors

Alex Denne

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

alex.den.21@genieai.co

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Relevant Teams

Human Resources

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Executive Leadership

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Employee Relations

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HR Manager

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In-house Counsel

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CEO

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HR Coordinator

Compensation Specialist

Employee Relations Manager

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Authors

Alex Denne

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