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Ontario-Specific

Severance Agreement for Ontario Employers

Protect your business from wrongful dismissal claims with a severance agreement built for Ontario law. Includes mutual release, enhanced severance, benefit continuation, and reference letter provisions.

Province-specific for Ontario
Updated when laws change
One-time payment, no subscription
7-day money-back guarantee
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What happens after checkout: Answer a short questionnaire, pay once, and your customized severance agreement is available immediately as an editable Word (.docx) file in your dashboard.

What's included

Full mutual release of all employment-related claims

Enhanced severance payment provisions

Benefit continuation clauses

Non-disparagement provisions

Reference letter commitments

Return of company property

Confidentiality obligations post-termination

Ontario governing law and jurisdiction

Why Ontario-specific matters

Generic “Canadian” templates from LawDepot don't account for Ontario's unique employment laws. Our severance agreement includes:

Mutual release language that satisfies Ontario courts

Consideration requirements for valid releases under Ontario law

Independent legal advice (ILA) recommendation clause

Cooling-off period provisions

Ontario-specific wrongful dismissal claim releases

Human rights complaint releases (where permissible)

Confidentiality of settlement terms

Frequently asked questions

When do I need a severance agreement vs. just a termination letter?

Use a severance agreement when you're offering more than the statutory minimum to get a full release of claims. A termination letter alone doesn't release you from wrongful dismissal liability. If you're paying enhanced severance, always get a signed release.

Is a severance agreement enforceable in Ontario?

Yes, when properly drafted. Ontario courts enforce severance agreements that include proper consideration, independent legal advice recommendations, and clear release language. Our template includes all required elements.

Does the employee need a lawyer to sign this?

We recommend including an ILA clause and giving the employee time to seek independent legal advice. This strengthens enforceability. Our template includes a recommendation that the employee consult a lawyer before signing.

Can I include a non-disparagement clause?

Yes. Our template includes mutual non-disparagement provisions that protect both parties. These are enforceable in most circumstances, though courts may limit overly broad restrictions.

How is this different from a generic template?

Generic severance agreements don't account for Ontario-specific release requirements or consideration rules. Our template is built for Ontario law and includes the elements courts look for when assessing enforceability.

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After checkout, your customized .docx file is available immediately in your dashboard.

Severance Agreement — Also Available in Other Provinces

Each province has different legal requirements. Select your province to see the correct version.