A release is a written document by which a person waives their right to pursue future claims against another party in exchange for money or other benefits received. In the context of employment termination, a release is usually signed by an employee in return for severance pay that exceeds the minimum legal obligations.
By signing a release, the employee confirms that they have received everything owed to them and waives the right to pursue the employer for any claims related to the employment relationship or its termination
Important Notice - The information in this article is provided for informational purposes only. It does not constitute legal advice or personalized professional guidance. Each termination or employment situation may involve specific circumstances. We recommend consulting a lawyer, legal advisor, or qualified HR professional before making any decision.
A release is typically used in the following situations:
A release may include several elements:
No. An employee is never required to sign a release. They may refuse the offer if they consider the conditions unsatisfactory. However, enhanced severance pay or career transition services may be conditional on signing the release.
Once signed, a release can prevent the employee from later contesting the termination, filing a labour standards complaint, or taking any other legal action related to their employment.
A release is a document signed by an employee at the end of employment, confirming that they have received what they were owed and waiving the right to pursue future claims against the employer. It is often tied to enhanced severance pay. Signing a release is a significant decision and should always be carefully considered—ideally with legal advice.