{"id":19029,"date":"2025-09-30T14:05:28","date_gmt":"2025-09-30T18:05:28","guid":{"rendered":"https:\/\/www.verreaudufresneavocats.com\/?p=19029"},"modified":"2026-01-19T12:13:48","modified_gmt":"2026-01-19T17:13:48","slug":"termination-agreement-rights-obligations","status":"publish","type":"post","link":"https:\/\/www.verreaudufresneavocats.com\/en\/publications\/employment-termination\/termination-agreement-rights-obligations\/","title":{"rendered":"Termination Agreements: Rights, Obligations and Best Practices"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>In Quebec, most workers will go through one or more terminations of employment during their careers. Although laws govern this process, some situations, such as negotiated departures or dismissals, may require a clear written agreement between the employer and the employee.<br><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>This is where the termination agreement comes in: an important legal tool to avoid conflict, protect your rights and ensure a smooth transition. What amounts can or must be paid? What commitments can bind the parties after the contract ends? How do you negotiate a fair agreement? <\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Our <a href=\"https:\/\/www.verreaudufresneavocats.com\/en\/services\/labour-and-employment-law\/\">labour law lawyers<\/a> in Qu\u00e9bec City and L\u00e9vis explain what you need to know to end an employment relationship properly, whether you are an employer or an employee.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a id=\"_msocom_1\"><\/a><\/p>\n\n\n\n<h2 id=\"h-termination-of-employment-what-does-the-law-say\" class=\"wp-block-heading\"><strong>Termination of employment: what does the law say?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Article 2085 of the Civil Code of Qu\u00e9bec<\/em> defines the contract of employment as follows: <em>\u201cA contract of employment is a contract by which a person, the employee, undertakes, for a limited time and for remuneration, to do work under the direction or control of another person, the employer.\u201d<\/em><br><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>How does a contract of employment end?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Whether it is for a fixed or an indeterminate term, a contract of employment can end in different ways, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>By mutual <strong>consent <\/strong>between the employer and the employee;<\/li>\n\n\n\n<li>By a <strong>dismissal <\/strong>for serious misconduct or a serious reason;<\/li>\n\n\n\n<li>By the employee\u2019s <strong>resignation<\/strong>;<\/li>\n\n\n\n<li>By <strong>retirement<\/strong>;<\/li>\n\n\n\n<li>By the employee\u2019s <strong>death<\/strong>;<\/li>\n\n\n\n<li>By the <strong>expiry<\/strong> of a fixed-term contract;<\/li>\n\n\n\n<li>By a <strong>layoff<\/strong>.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Whether the termination results from a decision of the employer or of the employee, it is subject to several rules. Various <strong>criteria <\/strong>come into play, including the employee\u2019s length of service, the nature of the job, labour market conditions and even the employee\u2019s age. The reason for the termination is also a key factor in determining the <strong>conditions that apply<\/strong> to the end of employment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Are you going through a termination of employment and wondering what your rights or obligations are? Our <a href=\"https:\/\/www.verreaudufresneavocats.com\/en\/services\/labour-and-employment-law\/\">labour law lawyers<\/a> are here to help you see clearly.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h2 id=\"h-what-is-a-termination-agreement\" class=\"wp-block-heading\"><strong>What is a termination agreement?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A termination agreement is a contract between the employer and the employee intended to <strong>govern the end<\/strong> of the employment relationship and protect each party\u2019s interests. It generally takes the form of a transaction and <span class=\"vda-def\" data-def=\"Document confirming that one of the parties has received payment of a debt\"><em>release<\/em>.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In other words, this written agreement, signed by the parties, makes it possible to settle disputes through mutual concessions.<\/p>\n\n\n\n<h2 id=\"h-what-does-a-termination-agreement-contain\" class=\"wp-block-heading\"><strong>What does a termination agreement contain?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A termination agreement can contain a wide variety of <strong>clauses<\/strong>, as long as they are clearly worded and freely accepted by both parties. The flexibility of this type of contract makes it possible to include terms suited to the needs and concerns of each situation. That said, the basic goal is always the same: to end the employment relationship completely and for good, by settling all the <strong>points in dispute<\/strong> and preventing any future challenge.<\/p>\n\n\n\n<h4 id=\"h-the-basic-elements\" class=\"wp-block-heading\"><strong>The basic elements:<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A <strong>summary of the facts<\/strong> surrounding the employment (length, nature of the position, circumstances of the termination);<\/li>\n\n\n\n<li>A <strong>list of each party\u2019s commitments<\/strong>;<\/li>\n\n\n\n<li>A <strong>waiver <\/strong>of any claim related to the termination, provided the commitments set out in the agreement are honoured;<\/li>\n\n\n\n<li>The <strong>payment <\/strong>of a sum of money, if applicable. This amount may be provided for by law or agreed upon by the parties.<\/li>\n<\/ul>\n\n\n\n<h4 id=\"h-an-agreement-may-also-include-specific-clauses-such-as\" class=\"wp-block-heading\"><strong>An agreement may also include specific clauses, such as:<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A general <strong>confidentiality obligation<\/strong>, or one covering the terms of the agreement;<\/li>\n\n\n\n<li>A <strong>non-disparagement clause<\/strong> prohibiting harm to the other party\u2019s reputation;<\/li>\n\n\n\n<li>A <strong>penalty clause<\/strong> providing for financial penalties if the agreement is not honoured.<\/li>\n\n\n\n<li>If legal proceedings are under way, the agreement may provide for their withdrawal, where possible.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Do you have questions about a clause or need help drafting an agreement? Our lawyers are here to support you.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h4 id=\"h-signing-the-agreement-an-obligation-or-a-choice\" class=\"wp-block-heading\"><strong>Signing the agreement: an obligation or a choice?<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Neither the employer nor the employee can be forced to sign a termination agreement. Each party keeps the right to think it over freely before making a commitment. It is strongly recommended to consult a legal professional for informed advice before making a decision.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<div class=\"wp-block-advgb-button aligncenter\"><a class=\"wp-block-advgb-button_link advgbbtn-72e8c22d-cf69-411e-8bed-df20fc51048a\" href=\"#footer\" target=\"_self\" rel=\"noopener noreferrer\"><span>Contact a lawyer<\/span><\/a><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h2 id=\"h-what-are-the-consequences-of-a-termination-agreement\" class=\"wp-block-heading\"><strong>What are the consequences of a termination agreement?<\/strong><\/h2>\n\n\n\n<h4 id=\"h-tax-impacts\" class=\"wp-block-heading\"><strong>Tax impacts<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Paying a <strong>sum of money<\/strong> under a termination agreement can have significant <strong>tax consequences<\/strong>. Some amounts received must be reported to the tax authorities, namely <strong>Revenu Qu\u00e9bec<\/strong> and the <strong>Canada Revenue Agency<\/strong>. Depending on how the amounts are characterized in the agreement, for example as damages or as salary, the forms to complete and the tax treatment may vary.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is therefore essential to clarify these points with your lawyer or financial advisor so you meet your <strong>tax obligations <\/strong>and complete the required forms correctly.<\/p>\n\n\n\n<h4 id=\"h-failure-to-honour-the-agreement\" class=\"wp-block-heading\"><strong>Failure to honour the agreement<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Once signed, the termination agreement requires both parties to honour their commitments. If one of them does not meet the conditions of the agreement, the other party can ask a court to homologate (approve) the agreement. This means that the court officially recognizes the agreement and gives it the same force as a judgment. From then on, the agreement becomes enforceable, which makes it possible to force compliance, for example by claiming the amounts owed through a bailiff.<\/p>\n\n\n\n<h4 id=\"h-an-irrevocable-agreement\" class=\"wp-block-heading\"><strong>An irrevocable agreement<\/strong><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Once signed, the agreement is generally irrevocable. Only certain specific situations allow it to be annulled, for example if the parties\u2019 consent was not free and informed at the time of signing. It is therefore essential to understand all the implications of such an agreement before you commit.<\/p>\n\n\n\n<div class=\"wp-block-advgb-button aligncenter\"><a class=\"wp-block-advgb-button_link advgbbtn-107453bf-fa13-461b-b087-3f35da3d6b3d\" href=\"#footer\" target=\"_self\" rel=\"noopener noreferrer\"><span>I want advice<\/span><\/a><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h2 id=\"h-key-points-to-remember\" class=\"wp-block-heading\"><strong>Key points to remember<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">When employment ends, the employer must pay certain <strong>amounts<\/strong>, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Hours worked;<\/li>\n\n\n\n<li>Accumulated unpaid vacation;<\/li>\n\n\n\n<li>Reimbursable expenses;<\/li>\n\n\n\n<li>Retirement allowances;<\/li>\n\n\n\n<li>Bonuses owed.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In addition, in certain situations the employer must give the notice provided for in <em>section 82 of the Act respecting labour standards (ALS)<\/em>. The employer must either pay it to the employee or let the employee work for the duration of the notice period. The length of the notice depends on the employee\u2019s length of service:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Employee\u2019s length of uninterrupted service<\/strong><\/td><td><strong>Notice required under section 82 ALS<\/strong><\/td><\/tr><tr><td>3 to 12 months<\/td><td>1 week<\/td><\/tr><tr><td>1 to 5 years<\/td><td>2 weeks<\/td><\/tr><tr><td>5 to 10 years<\/td><td>4 weeks<\/td><\/tr><tr><td>More than 10 years<\/td><td>8 weeks<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Whether the employee is entitled to notice depends in particular on the reason for the termination. To learn more, see our article on <a href=\"https:\/\/www.verreaudufresneavocats.com\/en\/publications\/employment-termination\/serious-misconduct-labour-standards-quebec\/\">serious misconduct justifying dismissal<\/a>.<br>An additional amount, called \u201c<strong>reasonable notice<\/strong>\u201d, may also be paid by the employer based on factors such as age, length of service or employment status. However, the employee is not automatically entitled to this amount. Ask our lawyers whether you may be entitled to an additional amount.<\/p>\n\n\n\n<h2 id=\"h-conclusion\" class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Whether initiated by the employer or the employee, the end of employment is often a delicate and stressful time. It is important to keep in mind, however, that several legal obligations must be met, or there may be legal or financial consequences.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Our labour law lawyers are here to support you at every step: whether to negotiate or draft an agreement, or to resolve a legal dispute.<\/p>\n\n\n\n<h2 id=\"h-contact-our-labour-law-lawyers-to\" class=\"wp-block-heading\"><br><strong>Contact our labour law lawyers to:<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Analyze <\/strong>your situation;<\/li>\n\n\n\n<li><strong>Provide a legal opinion<\/strong> on your rights and obligations;<\/li>\n\n\n\n<li><strong>Draft or review<\/strong> your termination agreement;<\/li>\n\n\n\n<li><strong>Negotiate <\/strong>an out-of-court settlement to resolve such a dispute.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-advgb-button aligncenter\"><a class=\"wp-block-advgb-button_link advgbbtn-1e2dbb95-c62d-41f2-be60-b0ae5a6866fb\" href=\"#footer\" target=\"_self\" rel=\"noopener noreferrer\"><span>Contact a lawyer<\/span><\/a><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n<style class=\"advgb-styles-renderer\">.advgbbtn-72e8c22d-cf69-411e-8bed-df20fc51048a{font-size:18px;color:#fff !important;background-color:#fe823c !important;margin:30px 0px 30px 0px !important;padding:10px 30px 10px 30px;border-width:1px !important;border-style:none;border-radius:50px !important;}.advgbbtn-72e8c22d-cf69-411e-8bed-df20fc51048a:hover{box-shadow:1px 1px 12px 0px #ccc;opacity:1;transition:all 0.2s ease;}.advgbbtn-72e8c22d-cf69-411e-8bed-df20fc51048a > i {display: none !important;}.advgbbtn-107453bf-fa13-461b-b087-3f35da3d6b3d{font-size:18px;color:#fff !important;background-color:#fe823c !important;margin:30px 0px 30px 0px !important;padding:10px 30px 10px 30px;border-width:1px !important;border-style:none;border-radius:50px !important;}.advgbbtn-107453bf-fa13-461b-b087-3f35da3d6b3d:hover{box-shadow:1px 1px 12px 0px #ccc;opacity:1;transition:all 0.2s ease;}.advgbbtn-107453bf-fa13-461b-b087-3f35da3d6b3d > i {display: none !important;}.advgbbtn-1e2dbb95-c62d-41f2-be60-b0ae5a6866fb{font-size:18px;color:#fff !important;background-color:#fe823c !important;margin:30px 0px 30px 0px !important;padding:10px 30px 10px 30px;border-width:1px !important;border-style:none;border-radius:50px !important;}.advgbbtn-1e2dbb95-c62d-41f2-be60-b0ae5a6866fb:hover{box-shadow:1px 1px 12px 0px #ccc;opacity:1;transition:all 0.2s ease;}.advgbbtn-1e2dbb95-c62d-41f2-be60-b0ae5a6866fb > i {display: none !important;}.advgbbtn-d898ce70-b562-4d89-afff-cdf3811f2180{font-size:18px;color:#fff !important;background-color:#fe823c !important;margin:30px 0px 30px 0px !important;padding:10px 30px 10px 30px;border-width:1px !important;border-style:none;border-radius:50px !important;}.advgbbtn-d898ce70-b562-4d89-afff-cdf3811f2180:hover{box-shadow:1px 1px 12px 0px #ccc;opacity:1;transition:all 0.2s ease;}.advgbbtn-d898ce70-b562-4d89-afff-cdf3811f2180 > i {display: none !important;}.advgbbtn-3260fec9-4a75-4534-a10f-d088e5ba48c2{font-size:18px;color:#fff !important;background-color:#fe823c !important;margin:30px 0px 30px 0px !important;padding:10px 30px 10px 30px;border-width:1px !important;border-style:none;border-radius:50px !important;}.advgbbtn-3260fec9-4a75-4534-a10f-d088e5ba48c2:hover{box-shadow:1px 1px 12px 0px #ccc;opacity:1;transition:all 0.2s ease;}.advgbbtn-3260fec9-4a75-4534-a10f-d088e5ba48c2 > i {display: none !important;}.advgbbtn-c7e159eb-bbbc-4ef6-9ea5-b4185f0c30ef{font-size:18px;color:#fff !important;background-color:#fe823c !important;margin:30px 0px 30px 0px !important;padding:10px 30px 10px 30px;border-width:1px !important;border-style:none;border-radius:50px !important;}.advgbbtn-c7e159eb-bbbc-4ef6-9ea5-b4185f0c30ef:hover{box-shadow:1px 1px 12px 0px #ccc;opacity:1;transition:all 0.2s ease;}.advgbbtn-c7e159eb-bbbc-4ef6-9ea5-b4185f0c30ef > i {display: none !important;}<\/style>","protected":false},"excerpt":{"rendered":"<p>In Quebec, most workers will go through one or more terminations of employment during their careers. Although laws govern this process, some situations, such as negotiated departures or dismissals, may require a clear written agreement between the employer and the employee. This is where the termination agreement comes in: an important legal tool to avoid<a class=\"excerpt-read-more\" href=\"https:\/\/www.verreaudufresneavocats.com\/en\/publications\/employment-termination\/termination-agreement-rights-obligations\/\" title=\"ReadTermination Agreements: Rights, Obligations and Best Practices\">&#8230; Read more &raquo;<\/a><\/p>\n","protected":false},"author":32,"featured_media":12288,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"advgb_blocks_editor_width":"","advgb_blocks_columns_visual_guide":"","footnotes":""},"categories":[143],"tags":[205,180,191,195],"class_list":["post-19029","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment-termination","tag-breakup","tag-dismissal","tag-employer","tag-termination-of-employment"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.7 (Yoast SEO v28.7) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Termination Agreements: Rights, Obligations and Best Practices &#8226; Verreau Dufresne Avocats<\/title>\n<meta name=\"description\" content=\"What you need to know to end an employment relationship properly, whether you are an employer or an employee.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.verreaudufresneavocats.com\/en\/publications\/employment-termination\/termination-agreement-rights-obligations\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Termination Agreements: Rights, Obligations and Best Practices\" \/>\n<meta property=\"og:description\" content=\"In Quebec, most workers will go through one or more terminations of employment during their careers. Although laws govern this process, some situations,\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.verreaudufresneavocats.com\/en\/publications\/employment-termination\/termination-agreement-rights-obligations\/\" \/>\n<meta property=\"og:site_name\" content=\"Verreau Dufresne Avocats\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/verreaudufresneavocats\/\" \/>\n<meta property=\"article:published_time\" content=\"2025-09-30T18:05:28+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-01-19T17:13:48+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.verreaudufresneavocats.com\/wp-content\/uploads\/2025\/09\/entente-fin-emploi-1024x683.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"683\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Me Marie-Michelle Savard\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@VerreauDufresne\" \/>\n<meta name=\"twitter:site\" content=\"@VerreauDufresne\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Me Marie-Michelle Savard\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.verreaudufresneavocats.com\\\/en\\\/publications\\\/employment-termination\\\/termination-agreement-rights-obligations\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.verreaudufresneavocats.com\\\/en\\\/publications\\\/employment-termination\\\/termination-agreement-rights-obligations\\\/\"},\"author\":{\"name\":\"Me Marie-Michelle Savard\",\"@id\":\"https:\\\/\\\/www.verreaudufresneavocats.com\\\/en\\\/#\\\/schema\\\/person\\\/108f6129ef04a58b7d24e87307e21522\"},\"headline\":\"Termination Agreements: Rights, Obligations and Best Practices\",\"datePublished\":\"2025-09-30T18:05:28+00:00\",\"dateModified\":\"2026-01-19T17:13:48+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.verreaudufresneavocats.com\\\/en\\\/publications\\\/employment-termination\\\/termination-agreement-rights-obligations\\\/\"},\"wordCount\":1226,\"publisher\":{\"@id\":\"https:\\\/\\\/www.verreaudufresneavocats.com\\\/en\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.verreaudufresneavocats.com\\\/en\\\/publications\\\/employment-termination\\\/termination-agreement-rights-obligations\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.verreaudufresneavocats.com\\\/wp-content\\\/uploads\\\/2025\\\/09\\\/entente-fin-emploi.png\",\"keywords\":[\"breakup\",\"dismissal\",\"employer\",\"termination of employment\"],\"articleSection\":[\"Employment and termination\"],\"inLanguage\":\"en-CA\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.verreaudufresneavocats.com\\\/en\\\/publications\\\/employment-termination\\\/termination-agreement-rights-obligations\\\/\",\"url\":\"https:\\\/\\\/www.verreaudufresneavocats.com\\\/en\\\/publications\\\/employment-termination\\\/termination-agreement-rights-obligations\\\/\",\"name\":\"Termination Agreements: Rights, Obligations and Best Practices &#8226; 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