Document background
The Independent Contractor Severance Agreement is essential when terminating a contractor relationship in Canada, whether through mutual agreement or unilateral decision. This document is typically used when a company wishes to provide severance compensation to a contractor beyond their regular fees, often in exchange for releases and specific post-termination obligations. It must comply with Canadian federal and provincial regulations, particularly regarding tax treatment and potential employment standards implications. The agreement typically includes provisions for final payments, confidentiality, property return, and release of claims, while possibly incorporating non-competition and transition assistance terms. It's crucial for risk management and ensuring a clean break between parties while maintaining professional relationships and legal compliance.
