Limitations On Severance Settlements In Quebec

Settling the terms on which departing employees leave an organization, whether as a result of termination with or without cause, resignation or retirement, is a regular part of every human resources manager's duties.

In the case of resignation or retirement, where the action is initiated by the employee, the employer's obligations are of course more limited, although even in these instances, certain aspects or obligations related to a departing employee's employment may need to be resolved and documented. Settlement of vacation pay and banked leave balances, or reimbursement of expenses, are some examples that come to mind.

Consequently, drawing up an agreement that defines the terms of severance and the obligations of the parties during the post-termination phase is often useful and recommended. The importance of such an agreement is even more apparent in cases where the employer is the one wishing to terminate the employment relationship, since in these cases,