Document background
The Executive Separation Agreement is a crucial document used when terminating the employment relationship with senior executives in Canada. It serves to protect both the organization and the departing executive by clearly defining the terms of separation, including financial compensation, benefit continuation, and ongoing obligations. The agreement must comply with Canadian federal and provincial employment standards, human rights legislation, and tax regulations. The document typically includes provisions for severance payments, treatment of equity compensation, confidentiality obligations, non-competition restrictions (where enforceable under Canadian law), and mutual releases. It requires careful consideration of the executive's specific circumstances, such as length of service, employment contract terms, and any applicable change-of-control provisions.
