The Employee Deed of Release is a crucial document used in England and Wales when formally terminating an employment relationship through mutual agreement. It serves as a comprehensive settlement agreement that protects both employer and employee interests. The deed is particularly important in situations involving redundancy, voluntary departure, or dispute resolution, providing clear terms for financial settlement, confidentiality obligations, and release of claims. This document must comply with specific requirements under English employment law to be legally binding and typically requires independent legal advice for the employee.
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1. Parties: Identification of employer and employee, including full legal names and addresses
2. Background: Context of employment relationship and reason for termination, including employment start date and circumstances leading to the deed
3. Definitions: Key terms used throughout the deed including 'Claims', 'Confidential Information', 'Termination Date'
4. Termination Date: Specific date employment ends and confirmation of final working day
5. Settlement Payment: Details of payments to be made, including amount, timing, and method of payment
6. Tax Indemnity: Employee's responsibility for tax on payments and indemnity to employer for any tax liability
7. Waiver of Claims: Employee's comprehensive waiver of employment-related claims and statutory rights
8. Confidentiality: Obligations regarding confidential information and terms of the settlement
1. Reference: Terms of employment reference and agreed wording for future references
2. Post-termination Restrictions: Ongoing restrictive covenants including non-compete, non-solicitation, and confidentiality obligations
3. Company Property: Provisions regarding return of company assets, equipment, and documents
4. Garden Leave: Terms of garden leave period if applicable, including duties and restrictions
5. Legal Advice: Confirmation that employee has received independent legal advice on the deed's terms
1. Schedule of Claims: Comprehensive list of statutory and contractual claims being settled under the deed
2. Payment Schedule: Detailed breakdown of settlement payments including basic pay, ex-gratia payments, and benefits
3. Company Property Schedule: Itemized list of company property to be returned by the employee
4. Agreed Reference: Template of agreed employment reference to be provided to future employers
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