Document background
The Mutual Agreement To Terminate Employment is used when both employer and employee in Canada agree to end their employment relationship amicably. This document is particularly valuable when parties wish to document a clear separation agreement that addresses all aspects of the employment termination, including financial terms, continuing obligations, and mutual releases. It helps prevent future disputes by clearly outlining all terms of the separation while ensuring compliance with Canadian employment standards, human rights legislation, and common law requirements. The agreement typically includes provisions for severance, benefits, confidentiality, and property return, and may be customized based on the employee's role, length of service, and specific circumstances of the termination. This document is distinct from a unilateral termination as it represents a consensual arrangement and often includes more favorable terms than a standard termination.
