How to write a termination letter in Canada
A clear termination letter protects both sides. It tells the employee exactly what they get and when, and it gives you a record if the decision is challenged later.
Before you write the letter
Decide whether the termination is with cause or without cause. In Canada, just cause is a high bar: courts expect serious misconduct or a documented pattern after clear warnings. Most terminations are without cause, which means notice or pay in lieu of notice.
Check three sources of entitlements: the employment standards minimum for your province, the employment contract, and common law reasonable notice if the contract does not limit it. The letter must give at least the statutory minimum. If you offer more in exchange for a signed release, say so clearly and give the employee time to get advice.
What the letter should include
Date and last day of work
The date of the letter and the employee's last working day.
Type of termination
Without cause, or with cause and the reason. Keep it factual and short.
Notice or pay in lieu
How many weeks, and whether they work the notice period or receive pay instead.
Severance pay, if it applies
Ontario and federally regulated employers may owe statutory severance on top of notice.
Final pay and vacation pay
Wages owed, outstanding vacation pay and when they will be paid.
Benefits
When benefits end. In Ontario, benefits must continue through the statutory notice period.
Record of Employment
Confirm that you will issue the ROE to Service Canada.
Company property and access
Laptop, keys, cards and how they will be returned.
Offer above the minimum, if any
The extra amount, the release required and a deadline to accept.
Minimum written notice by province
| Length of employment | Ontario | British Columbia | Alberta |
|---|---|---|---|
| Under 3 months | None | None | None (under 90 days) |
| 3 months to 1 year | 1 week | 1 week | 1 week |
| 1 to 2 years | 2 weeks | 2 weeks | 1 week |
| 2 to 3 years | 2 weeks | 2 weeks | 2 weeks |
| 3 to 4 years | 3 weeks | 3 weeks | 2 weeks |
| 4 to 5 years | 4 weeks | 4 weeks | 4 weeks |
| 5 to 6 years | 5 weeks | 5 weeks | 4 weeks |
| 6 to 8 years | 6 to 7 weeks | 6 to 7 weeks | 5 weeks |
| 8 to 10 years | 8 weeks | 8 weeks | 6 weeks |
| 10 years or more | 8 weeks | 8 weeks | 8 weeks |
Statutory minimums for most private-sector employees. Some groups are exempt, and group terminations have separate rules. Common law notice is often much longer.
Official sources
- Ontario termination notice and pay in lieu. Source
- Ontario severance pay: employees with five or more years of service, where the employer has a payroll of $2.5 million or more or severs 50 or more employees in six months because of a closure, get one week per year of service, up to 26 weeks. Source
- British Columbia termination of employment. Source
- Alberta termination of employment. Source
- Record of Employment guide from Service Canada. Source
Sample termination letter without cause
[Date]
Dear [Employee name],
This letter confirms our conversation today. Your employment with [Company] as [Job title] will end without cause. Your last day of work is [date].
You will receive [number] weeks of pay in lieu of notice, equal to $[amount], less required deductions, paid on [date]. You will also receive your wages to your last day and $[amount] in outstanding vacation pay on [date]. Your group benefits will continue until [date].
We will issue your Record of Employment to Service Canada. Please return your laptop, keys and access card by [date].
[Optional: In addition, we are offering $[amount] in exchange for signing the attached release by [date]. We encourage you to get independent legal advice before signing.]
If you have questions, please contact [name] at [email].
Sincerely, [Name, title]
Common questions
Do I have to give a reason for a termination without cause?
Employment standards do not require a reason for a termination without cause. Giving a vague or untrue reason can cause more problems than giving none.
Can I terminate during probation without notice?
In Ontario and BC, no statutory notice is owed in the first three months, and in Alberta in the first 90 days. A probation clause in the contract does not extend that period on its own, and common law notice can still apply if the contract does not limit it properly.
Should the letter be delivered in person?
Ideally, hand it over in a short private meeting and send a copy by email the same day.
Hiring, or stuck on an HR question?
Tell us what you need. We reply by email to set up a short free call, and send a written agreement before any work starts.