Termination Letter Template
A termination letter formally ends the employment relationship and documents notice, severance, final pay and benefits continuation. Our free Canadian template is drafted to align with provincial employment standards legislation and the common-law reasonable-notice rules that govern dismissals across the common-law provinces.
Dear Michael A. Brooks,
This letter serves as formal notice that your employment with Maple Leaf Industries Ltd. in the position of Marketing Manager (Marketing department) is being terminated without cause, effective April 15, 2026. Your date of hire was March 15, 2019, representing approximately 7 years of service.
Pay in Lieu of Notice: In accordance with the Employment Standards Act of Ontario, you will receive 7 weeks' pay in lieu of notice. This payment will be included in your final pay, subject to all applicable statutory deductions. Your last working day is April 15, 2026.
Severance Pay: In addition to the above notice pay, you will receive a severance payment of 35,000.00 CAD (gross, before statutory deductions). This payment reflects the Employment Standards Act severance requirements of Ontario based on your length of service.
Final Pay: Your final pay will include: (a) all wages earned up to and including your last working day; (b) any accrued and unused vacation pay calculated in accordance with the Employment Standards Act; (c) pay in lieu of notice as described above; (d) severance pay as described above; all subject to applicable statutory deductions including CPP contributions, EI premiums, and income tax withholdings.
Benefits: Your group benefits coverage will continue through the statutory notice period and cease on April 15, 2026. You may be eligible to convert your group life insurance to an individual policy without evidence of insurability within the applicable conversion period. Please contact the benefits administrator for details.
Record of Employment (ROE): A Record of Employment will be issued electronically to Service Canada within five (5) calendar days of your last day of work, as required under the Employment Insurance Act, R.S.C. 1985, c. E-5.6. You may use the ROE to apply for Employment Insurance benefits through Service Canada.
Return of Company Property: Please return all company property — including access cards, keys, laptops, mobile devices, confidential documents, and any other materials belonging to Maple Leaf Industries Ltd. — on or before your last working day.
Additional Notes: Accrued vacation pay of 10 days will be included in the final pay. A reference letter will be provided upon request.
We appreciate your contributions during your time with Maple Leaf Industries Ltd. and wish you well in your future endeavours.
This letter is provided in compliance with the Employment Standards Act of Ontario and applicable federal legislation. Nothing in this letter is intended to limit any rights you may have under common law or statute.
What Is a Termination Letter?
A termination letter is the written notice by which an employer formally ends the employment of an employee. It sets out the effective end date, whether the employee will work out the notice period or receive pay in lieu, the statutory and contractual severance being paid, and arrangements for final pay, vacation accrual, benefits continuation and the Record of Employment (ROE).
In Canada a termination letter serves two functions: it satisfies the employer’s statutory obligation to give notice under the applicable Employment Standards Act, and it creates the documentary record that will be reviewed if the employee later challenges the dismissal. Because of Waksdale v Swegon North America Inc., 2020 ONCA 391, the language used — particularly if termination is "for cause" — needs to match the wilful-misconduct threshold in the ESA, not a broader contractual standard.
Terminations may be on a without-cause basis (requiring notice or pay in lieu plus any severance) or for just cause (where the threshold is very high, as confirmed by McKinley v BC Tel, 2001 SCC 38). A properly drafted letter distinguishes clearly between the two and avoids inadvertent admissions that can be used in a wrongful dismissal claim.
What's Covered in This Template
Our Canadian termination letter template covers every item that provincial employment standards law and common-law practice require.
Employee and Employer Details
Full legal names of both parties, position held and start date of employment.
Effective Termination Date
The last day of employment and, where applicable, any working notice period.
Reason for Termination
Clear indication of whether the termination is without cause or for just cause, drafted in line with McKinley v BC Tel.
Statutory Notice or Pay in Lieu
The minimum notice or pay in lieu required under the applicable ESA (e.g., ss. 54–57 of the Ontario ESA).
Statutory Severance Pay
Severance pay where the employee qualifies (e.g., s. 64 of the Ontario ESA for qualifying employers and five-plus years of service).
Common-Law Notice Package
Any additional common-law notice offered above the statutory minimum, consistent with the Bardal factors.
Benefits Continuation
Whether group health, dental and disability benefits continue through the statutory notice period or longer.
Final Pay and Vacation
Payout of accrued but unused vacation, outstanding overtime and any owed bonus or commission.
Return of Property
Expectations for the return of keys, laptops, credit cards and confidential information.
Record of Employment and Release
Reference to the ROE that Service Canada requires and any optional release agreement accompanying an enhanced package.
How to Create a Termination Letter
Follow these steps to produce a compliant Canadian termination letter.
- 1
Confirm the Legal Basis
Decide whether the termination is without cause or for just cause, and confirm the province of work to apply the correct ESA minimums.
- 2
Calculate Statutory Entitlements
Calculate statutory notice or pay in lieu, severance pay (if any) and any outstanding vacation, overtime and bonus amounts.
- 3
Consider Common-Law Notice
Assess the Bardal factors (age, tenure, position, availability of similar employment) and decide whether to offer an enhanced package in exchange for a release.
- 4
Draft the Letter
Use the template to set out the end date, payments, benefits continuation, property return, ROE and — where applicable — a separate release agreement.
- 5
Deliver and Document
Deliver the letter in a private meeting, issue the ROE to Service Canada within five calendar days of the interruption of earnings, and retain a signed copy on file.
Legal Considerations
Canadian dismissals engage provincial employment standards minimums, common-law reasonable notice, and human-rights protections. Employers should proceed carefully and document the decision.
This template is for informational purposes only and does not constitute legal advice. Consult a qualified lawyer in your province for advice specific to your situation.
Reviewed for Canadian law
Statutory Notice and Severance
Under sections 54 to 57 of the Employment Standards Act, 2000, S.O. 2000, c. 41, an employer must give notice or pay in lieu equal to one week per year of service up to a maximum of eight weeks. Section 64 additionally requires statutory severance of one week per year up to 26 weeks where the employer has a $2.5 million Ontario payroll and the employee has five or more years of service. British Columbia (ESA s. 63), Alberta (Employment Standards Code s. 54) and other provinces have analogous but distinct regimes.
Common-Law Reasonable Notice
Where no enforceable termination clause caps entitlement, employees are entitled to reasonable notice at common law. Courts assess the Bardal factors — age, length of service, character of employment and availability of similar employment — as restated in Honda Canada Inc. v Keays, 2008 SCC 39. Reasonable notice frequently exceeds statutory minimums and, for senior employees, can reach twenty-four months. The dismissed employee has a duty to mitigate by seeking comparable work.
Just-Cause Threshold
Termination for just cause requires conduct that goes to the root of the employment relationship, applying the contextual test in McKinley v BC Tel, 2001 SCC 38. Even where cause exists at common law, the narrower ESA wilful-misconduct standard in O. Reg. 288/01 s. 2(1)(3) must still be satisfied to deny statutory notice and severance. Asserting cause without clear evidence is a common source of wrongful dismissal liability.
Human Rights and the Record of Employment
Dismissals must not be tainted by grounds protected under the applicable human rights code — for example, the Human Rights Code, R.S.O. 1990, c. H.19 — or by reprisals for whistleblowing, leaves, or claims for statutory entitlements. Employers must also issue a Record of Employment to Service Canada within five calendar days of the interruption of earnings so the employee can access Employment Insurance benefits.
Frequently Asked Questions
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