Not legal advice. ZeroLawyer provides document templates for informational purposes only. For advice specific to your situation, consult a licensed lawyer.
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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Ending employment for business reasons and want a full and final release to protect against future wrongful dismissal claims.
Paying above the statutory minimum and want documentation that the employee has accepted the payment in full settlement of all claims.
Parting ways with a long-tenured employee or someone with complex compensation, and need a clean, documented exit.
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
Release enforceability varies by province. The template adjusts language based on the province you select.
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.
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 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 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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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.
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.
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.
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.
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.
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.
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.
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This template covers standard without-cause terminations with enhanced severance. Consult a licensed employment lawyer if:
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.
Full and final release for ON, BC, AB, and QC. One payment. Instant download.
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Also need a Termination Letter? Get the Termination Letter — $49 · Or save with HR Essentials Bundle — $199