A Severance Agreement And General Release is utilized when an employment relationship is being terminated by mutual agreement under English and Welsh law. This document is crucial for protecting both employer and employee interests by clearly defining separation terms, including financial compensation, ongoing obligations, and mutual releases. It must comply with UK employment legislation, particularly regarding independent legal advice requirements and statutory rights. The agreement typically includes provisions for confidentiality, non-disparagement, and the treatment of company property, while ensuring all terms are enforceable under English law.
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1. Parties: Identification of employer and employee
2. Background: Context of employment and circumstances leading to separation
3. Definitions: Key terms used throughout the agreement
4. Termination Date: Specific date employment ends and final working day
5. Severance Payment: Details of payment amounts, timing, and tax treatment
6. General Release: Waiver of claims against employer
7. Confidentiality: Obligations regarding company information and agreement terms
8. Legal Advice: Confirmation of independent legal advice received
1. Garden Leave: Terms of any period where employee remains employed but not working
2. Reference: Terms of future employment references
3. Post-termination Restrictions: Non-compete and non-solicitation provisions
4. Company Property: Return of company assets and equipment
1. Schedule 1: Payment Calculation: Detailed breakdown of severance payment components
2. Schedule 2: Agreed Reference: Template of agreed employment reference
3. Schedule 3: Adviser's Certificate: Legal adviser's confirmation of provided advice
4. Schedule 4: Resignation Letter: Template resignation letter if required
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