Layoff Agreement Template for Canada

The Layoff Agreement is a crucial document used in Canadian employment law when an employer needs to terminate employment relationships due to workforce reduction, restructuring, or economic circumstances. This agreement serves as a comprehensive record of the termination arrangement, incorporating all statutory requirements under relevant federal and provincial employment legislation. It typically includes details about severance packages, benefit continuation, release of claims, and ongoing obligations. The document is designed to protect both employer and employee interests while ensuring compliance with Canadian employment standards, human rights legislation, and common law principles regarding reasonable notice and severance. The agreement should be customized based on the applicable provincial jurisdiction, as employment law varies across Canadian provinces and territories.

1. Parties: Identification of the employer and employee, including full legal names and addresses

2. Background: Context of the employment relationship, including start date, position, and reason for layoff

3. Definitions: Key terms used throughout the agreement including 'Termination Date', 'Severance Payment', 'Released Claims'

4. Termination of Employment: Formal statement of employment termination, including effective date and position elimination

5. Severance Payment: Details of severance package, including amount, payment schedule, and statutory deductions

6. Continuation of Benefits: Terms regarding extended health benefits, insurance coverage, and benefit conversion options

7. Return of Company Property: Requirements and timeline for returning company equipment, documents, and other property

8. Release of Claims: General release of claims against the employer, subject to statutory exceptions

9. Confidentiality: Obligations regarding confidential information and terms of the agreement

10. References: Agreement on the nature and content of employment references

11. Governing Law: Specification that the agreement is governed by Canadian law and relevant provincial legislation

12. Acknowledgement: Employee's confirmation of understanding, opportunity for legal counsel, and voluntary acceptance