An Employment Termination Agreement is essential when formally ending an employment relationship in England and Wales. This document is typically used when both parties wish to achieve a clean break and document all aspects of the separation, including financial settlements, continuing obligations, and mutual releases. It helps prevent future disputes by clearly setting out terms of separation, ensuring compliance with UK employment law, and protecting both parties' interests. The agreement is particularly important when dealing with senior employees, redundancy situations, or where there are potential claims to be settled.
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1. Parties: Identification of employer and employee with full legal names and addresses
2. Background: Brief context of employment relationship and reason for termination
3. Definitions: Key terms used throughout the agreement
4. Termination Date: Specific date employment will terminate and confirmation of employment end
5. Final Payment Terms: Details of final salary, benefits, accrued holiday pay, and any termination payments
6. Tax Treatment: Tax implications of payments and tax indemnities
7. Company Property: Requirements for return of company property and confirmation of deletion of electronic information
8. Confidentiality: Ongoing confidentiality obligations and protection of company information
9. Settlement and Waiver: Full and final settlement of claims and statutory waivers
10. Governing Law: Confirmation that agreement is governed by laws of England and Wales
1. Garden Leave: Terms of garden leave including duration and conditions during garden leave period
2. Post-termination Restrictions: Non-compete, non-solicitation, and other restrictive covenants
3. Legal Fees: Terms regarding employer's contribution to employee's legal costs
4. Reference: Agreement regarding future employment references and communications about departure
5. Outplacement Support: Details of any career transition or outplacement support provided
6. Share Options and Benefits: Treatment of existing share options, insurance, and other benefits
1. Schedule 1 - Payment Calculation: Detailed breakdown of all payments including statutory, contractual, and ex-gratia amounts
2. Schedule 2 - Agreed Form of Reference: Template of agreed employment reference to be provided
3. Schedule 3 - Certificate of Independent Legal Advice: Confirmation of legal advice received by employee from qualified legal advisor
4. Schedule 4 - Continuing Post-Termination Obligations: List of surviving contractual obligations from employment contract
5. Appendix 1 - Company Property List: Itemized list of company property to be returned before departure
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