The Redundancy Termination Letter is a crucial document in Canadian employment law, used when an organization needs to terminate employment due to organizational restructuring, economic conditions, or operational changes. This document must comply with both federal and provincial employment standards, particularly regarding notice periods, severance calculations, and statutory entitlements. The letter serves multiple purposes: it officially communicates the termination decision, outlines the comprehensive severance package, details the timeline for the termination process, and explains any continuing obligations or benefits. Given Canada's strict employment laws, the Redundancy Termination Letter must be carefully drafted to ensure all legal requirements are met while maintaining professionalism and clarity in communication.
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1. Letter Header: Company letterhead, date, and employee's contact information
2. Opening Statement: Clear statement confirming the redundancy and termination decision
3. Reason for Redundancy: Brief explanation of the business circumstances leading to the redundancy
4. Last Working Day: Confirmation of the employee's final working day
5. Notice Period: Details of the notice period or pay in lieu of notice
6. Severance Package: Overview of the severance payment and calculation basis
7. Return of Company Property: List of company items to be returned and process for return
8. Final Pay Details: Information about final salary, accumulated vacation pay, and other entitlements
9. Reference and Future Employment: Information about providing references and handling future employment inquiries
1. Garden Leave: Include when the employee will be paid but not required to work during notice period
2. Outplacement Support: Include when company is offering career transition services
3. Extended Benefits: Include when health benefits or other perks will continue beyond termination
4. Non-Competition Reminder: Include when employee is bound by existing non-compete agreements
5. Pension and Investment Plans: Include for employees with company pension or investment arrangements
6. Release Agreement: Include when requiring employee to sign a release in exchange for enhanced severance
1. Schedule A - Severance Calculation: Detailed breakdown of severance pay calculation
2. Schedule B - Benefits Summary: Details of benefit continuation and termination dates
3. Schedule C - Company Property Checklist: Itemized list of company property to be returned
4. Schedule D - Release Agreement: If applicable, the formal release agreement document
5. Schedule E - Outplacement Services: Details of career transition support services offered
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