The Voluntary Exit Letter is utilized in situations where an employee and employer have mutually agreed to end their employment relationship in Canada. This document is distinct from a termination letter or resignation letter as it represents a consensual separation agreement. It's commonly used during corporate restructuring, early retirement programs, or when an employee seeks to leave on agreed terms. The letter must comply with Canadian federal and provincial employment standards, including the Canada Labour Code and relevant provincial employment legislation. It typically includes essential details such as the termination date, financial terms, benefit arrangements, and release provisions. The document serves both as a record of the agreement and a risk management tool, helping prevent future disputes by clearly documenting the voluntary nature of the separation and all agreed terms.
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1. Letter Header: Company letterhead, date, and employee's full name and address
2. Opening Statement: Reference to prior discussions and confirmation of mutual agreement to end employment
3. Last Day of Employment: Clear statement of the effective termination date
4. Payment Terms: Details of final salary, accrued vacation pay, and any additional payments
5. Benefits Information: Information about continuation or termination of benefits
6. Company Property: Requirements for returning company property and timeline
7. Confidentiality: Reminder of ongoing confidentiality obligations
8. Release Statement: Mutual release of claims between parties
9. Acknowledgment: Statement confirming voluntary nature of exit and understanding of terms
10. Signature Block: Space for signatures of both employer and employee with dates
1. Post-Employment Restrictions: Include when there are non-compete or non-solicitation obligations to reference
2. Reference Provision: Include when agreeing to provide employment references
3. Outplacement Services: Include when offering career transition support
4. Stock Options/Equity: Include when addressing treatment of equity compensation
5. Extended Benefits: Include when offering continuation of benefits beyond standard termination
6. Legal Advice: Include when recommending or requiring independent legal advice
7. Tax Considerations: Include when significant payments or complex tax implications are involved
1. Schedule A - Payment Calculation: Detailed breakdown of all payments including salary, vacation pay, and any additional amounts
2. Schedule B - Benefits Summary: Detailed listing of benefit continuation terms and dates
3. Schedule C - Stock Option/RSU Statement: Summary of equity compensation status and important dates
4. Schedule D - Personal Property Checklist: List of company property to be returned
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