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Province-specific · ON, BC, AB, QC

Severance Agreement & Release

A full and final release of employment claims for Canadian employers. Protects your company when parting ways with an employee — province-specific for ON, BC, AB, and QC.

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Who this is for

Employers terminating without cause

Ending employment for business reasons and want a full and final release to protect against future wrongful dismissal claims.

Business owners offering enhanced severance

Paying above the statutory minimum and want documentation that the employee has accepted the payment in full settlement of all claims.

Operators managing departures cleanly

Parting ways with a long-tenured employee or someone with complex compensation, and need a clean, documented exit.

What the template covers

Every clause you need for a clean, enforceable separation.

Full and final release of all employment-related claims

Severance amount, payment schedule, and tax treatment

Benefits continuation period and COBRA/provincial equivalent

Non-disparagement clause (mutual or one-way)

Confidentiality of the agreement terms

Return of company property and access revocation

Reference letter terms (if applicable)

Province-specific language for ON, BC, AB, and QC

Province-specific requirements

Release enforceability varies by province. The template adjusts language based on the province you select.

Ontario

Ontario employees must be given a reasonable period (typically 7 days minimum) to review and sign a severance agreement. The release must be in exchange for consideration above the ESA statutory minimum — paying only the minimum does not support a valid release.

British Columbia

BC courts have found that releases signed under duress or without independent legal advice may be unenforceable. The template includes a recommendation that the employee seek independent legal advice and a signing date that provides adequate review time.

Alberta

Alberta follows common law notice principles. A valid release requires fresh consideration — something above what the employee is already owed. The template includes a clear recital of the consideration being paid.

Quebec

Quebec civil law governs employment relationships. The template includes Quebec-specific language and references the CNESST complaint process. Releases in Quebec must meet civil law requirements for validity.

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Common questions

What is a severance agreement and why do I need one?

A severance agreement (also called a separation agreement or release) is a contract where an employee agrees to release all claims against the employer in exchange for enhanced severance pay above the statutory minimum. Without a signed release, a terminated employee can sue for wrongful dismissal and seek common law notice — which can be significantly higher than the ESA minimum. A properly executed severance agreement protects your company from future claims.

What's the difference between a termination letter and a severance agreement?

A termination letter notifies the employee that their employment is ending and documents the statutory minimums. A severance agreement is a separate contract where the employee releases all claims in exchange for enhanced severance. You need both: the termination letter to document the termination, and the severance agreement to get the release. We offer the Termination Letter separately for $49, or both are included in the HR Essentials bundle for $199.

What consideration do I need to pay to make the release valid?

The release must be in exchange for something above what the employee is already legally owed. Paying only the statutory ESA minimum does not support a valid release — courts have set aside releases where no additional consideration was provided. The template includes a recital of the consideration being paid and is designed to support enforceability.

Does the employee need a lawyer to sign this?

Not legally required, but strongly recommended for enforceability. Courts are more likely to uphold a release when the employee had the opportunity to seek independent legal advice. The template includes a recommendation that the employee seek independent legal advice and provides adequate time to review before signing.

Which provinces does this template cover?

Ontario, British Columbia, Alberta, and Quebec. Each province has different requirements for valid releases, consideration, and review periods — the template addresses all four with province-specific language.

Can I use this for a contractor termination?

No. Contractors are not employees and are not covered by provincial employment standards acts. If you need to end a contractor relationship, review the termination clause in your contractor agreement. This template is specifically for employment relationships.

What format do I receive?

PDF and fully unlocked DOCX. Edit in Microsoft Word or Google Docs, fill in the employee details and severance amount, and sign. Instant download after payment.

What is your refund policy?

Full refund within 7 days, no questions asked. Email [email protected] and we process refunds within 24 hours.

When you need a real employment lawyer

This template covers standard without-cause terminations with enhanced severance. Consult a licensed employment lawyer if:

  • The termination involves allegations of cause, misconduct, or a human rights complaint
  • The employee has 10+ years of service — common law notice entitlements can be substantial
  • The compensation includes unvested equity, deferred bonuses, or complex commission structures
  • The employee has already retained a lawyer or sent a demand letter
  • You're in Quebec — civil law applies and additional review is recommended
  • The release is being challenged or the employee is refusing to sign

Better value

HR Essentials Bundle — $199

Includes this agreement plus Employment Contract, Contractor Agreement, IP Assignment, and Termination Letter. Save $266 vs. buying separately.

ZeroLawyer.ca provides legal document templates for informational purposes. Templates are not a substitute for professional legal counsel. Consult a licensed lawyer for advice specific to your situation.

Part ways cleanly. Protect your company.

Full and final release for ON, BC, AB, and QC. One payment. Instant download.

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