[EMPLOYER LETTERHEAD]
[Month, Day, Year]
DELIVERED BY HAND[Employee Name]
[Address]
Dear [Employee First Name]:
Re: Employment
This letter confirms our conversation in which you were advised that your employment with [Employer Name] (the “Company”) is being terminated effective today.
You will be paid all salary and unused vacation earned to today’s date on the next pay cycle, less regular statutory withholdings.
In addition, in order to assist you in your transition to new employment, the Company will provide you with a severance payment, the terms of which are set out below and which exceed the Company’s obligations under your offer of employment dated [Date].
Following today’s date, the Company will continue your salary for a period of [#] weeks (the “Notice Period”). You are not required to report to work during the Notice Period. The Notice Period should be used by you to search for new employment.
Subject to approval from our insurer, the Company will continue your employment benefits for a period of [#] weeks following the date of this letter. The continuation of your employment benefits will be subject to the terms and conditions of the applicable plans. For greater clarity, the following benefits will end effective the close of business at the end of the Notice Period :
Group Health Benefits;
Life Insurance;
Accidental Death & Dismemberment;
Long-Term Disability Insurance;
Out-of-Country Medical and Travel Insurance; and
Critical Illness Insurance.
You may be able to convert some of the employment benefit coverage to an individual policy. We recommend that you contact our employment benefit insurer immediately if you wish to exercise any of the conversion privileges. Please note that you have 30 days from today’s date to exercise these conversion privileges.
Any employee paid premiums that are required to continue your benefits will be deducted from the salary payments made to you during the Notice Period.
In addition, the Company will pay you a gratuitous payment in the sum of [$$$] (the “Gratuitous Payment”), less applicable statutory deductions. Payment of the Gratuitous Payment is contingent on the following:
- Your execution of the Full and Final Release enclosed with this letter; and
- Your agreement to not make any disparaging remarks about the Company, its officers, directors, employees, shareholders or others who have a business relationship with the Company.
If you wish to receive the Gratuitous Payment, please sign and return a copy of this letter and the attached Full and Final Release within the next seven days. If we have not received a signed copy of this letter and the Full and Final Release within seven days the offer of the Gratuitous Payment will expire.
You are required to return all Company property in your possession including, but not limited to, all pass codes, credit cards, cellular telephones, computers, keys, documentation and other electronic or tangible data or items. Please ensure that all Company property is returned within 5 days.
We recognize that this represents a significant change for you. It is our sincere hope that the transition support will allow you to find new employment with as little disruption as possible.
If you have any questions regarding any of the provisions contained in this letter, please contact the undersigned. On behalf of the Company, I want to thank you for your service and wish you the best in your future endeavors.
Yours truly,
[Employer Name]
[Name]
[Title]
Acknowledgement
I have read and understand the terms above and hereby irrevocably accept same in full and final satisfaction of all amounts owing to me. I acknowledge having the opportunity to obtain legal advice.
____________________________________
[Employee Name]
