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Non Disparagement Agreement After Termination for Canada

Non Disparagement Agreement After Termination Template for Canada

A Canadian Non-Disparagement Agreement After Termination is a legally binding document that restricts parties from making negative or harmful statements about each other following the end of an employment relationship. This agreement, governed by Canadian federal and provincial laws, establishes mutual obligations for maintaining professional conduct and protecting reputational interests. It includes specific provisions for permitted communications, exceptions for legal proceedings or regulatory requirements, and remedies for breach of obligations, while ensuring compliance with Canadian employment standards, human rights legislation, and constitutional protections for freedom of expression.

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What is a Non Disparagement Agreement After Termination?

A Non-Disparagement Agreement After Termination is typically implemented when an employment relationship ends, whether through resignation, mutual agreement, or termination. This document is essential in Canadian business contexts where protecting organizational and individual reputations is crucial. It outlines specific obligations regarding communications about the former employment relationship, the organization, and involved individuals. The agreement must carefully balance restrictive provisions with Canadian legal requirements, including provincial employment standards, human rights legislation, and constitutional rights. It's particularly important in situations involving senior executives, public-facing roles, or sensitive departures, and should include clear definitions of prohibited behavior while preserving legally protected communications rights.

What sections should be included in a Non Disparagement Agreement After Termination?

1. Parties: Identification of the employer and former employee entering into the agreement

2. Background: Context of the agreement, including reference to the terminated employment relationship

3. Definitions: Key terms including 'disparagement', 'confidential information', and scope of 'communication'

4. Non-Disparagement Obligations: Core provisions detailing prohibited actions and communications

5. Scope of Agreement: Temporal and geographical limitations of the non-disparagement obligations

6. Legitimate Communications: Permitted communications and exceptions for legal proceedings, regulatory requirements, or truthful statements

7. Mutual Obligations: Reciprocal obligations of both parties regarding non-disparagement

8. Remedies: Consequences of breach, including potential damages and injunctive relief

9. Severability: Provision ensuring remainder of agreement remains valid if any portion is found unenforceable

10. Governing Law: Specification of applicable Canadian jurisdiction and laws

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

What sections are optional to include in a Non Disparagement Agreement After Termination?

1. Social Media Provisions: Specific obligations regarding social media platforms and online communications

2. Third Party Coverage: Extension of obligations to related parties such as affiliates, officers, or family members

3. Survival of Obligations: Specification of which obligations continue beyond the term of the agreement

4. Alternative Dispute Resolution: Procedures for resolving disputes through mediation or arbitration

5. Return of Property: Requirements regarding return of company property and documents

6. Non-Admission: Statement that agreement does not constitute admission of wrongdoing by either party

7. Consideration: Details of any additional compensation or benefits provided in exchange for the agreement

What schedules should be included in a Non Disparagement Agreement After Termination?

1. Schedule A - Approved Public Statement: Agreed-upon statement that may be used by either party regarding the employment termination

2. Schedule B - Excluded Matters: List of specific topics or matters excluded from the non-disparagement obligations

3. Schedule C - Specific Communications Guidelines: Detailed guidelines for handling specific types of communications or inquiries

4. Appendix 1 - Related Entities: List of affiliated companies, individuals, or entities covered by the agreement

Authors

Alex Denne

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

Jurisdiction

Canada

Publisher

Ƶ

Cost

Free to use
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Technology

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Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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