Letter of Termination
A formal letter from an employer terminating an employee's position, including notice period and final pay details.
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A letter of termination is a formal written notice from an employer to an employee confirming that their employment is being ended, effective on a specified date. Whether the termination is with or without cause has significant legal implications for the notice, severance, and benefits the employee is entitled to receive.
Termination with cause vs. without cause
Termination for cause — for serious misconduct such as theft, fraud, or persistent insubordination — does not entitle the employee to notice or severance. However, the bar for proving just cause is high in Canada, and employers who wrongly assert cause expose themselves to significant liability. Termination without cause requires the employer to provide working notice or payment in lieu, calculated based on length of service and the applicable provincial employment standards.
What the letter should include
The termination letter should confirm: the employee's name and position; the effective date of termination; whether notice or pay in lieu is being provided; the treatment of benefits, vacation pay, and outstanding expenses; instructions for the return of company property; and any post-employment obligations (confidentiality, non-compete) that remain in force.