A Severance Release Form is a crucial document used when employment relationships are terminated by mutual agreement in England and Wales. It provides legal protection for employers while ensuring fair compensation for employees. The document typically includes detailed terms of the severance package, waiver of claims, confidentiality provisions, and tax treatment of payments. It must comply with UK employment law requirements, including the necessity for independent legal advice and proper consideration of statutory rights. This form is particularly important in redundancy situations, senior executive departures, or when resolving potential employment disputes.
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1. Parties: Identifies the employer and employee parties to the agreement
2. Background: Sets out employment history, context, and reason for termination
3. Definitions: Defines key terms used throughout the agreement
4. Termination Date: Specifies the official end date of employment and any garden leave arrangements
5. Payment Terms: Details of severance payment, payment timing, and other financial arrangements including treatment of benefits
6. Tax Indemnity: Employee's responsibility for tax on payments and employer's right to make deductions
7. Waiver of Claims: Employee's agreement to waive legal claims against the employer and group companies
8. Legal Advice: Confirmation that independent legal advice has been received
9. Confidentiality: Obligations regarding confidentiality of the agreement terms and company information
10. Company Property: Requirements for return of company property and deletion of company information
1. Garden Leave: Used when employee is placed on garden leave before termination
2. Reference: Terms of employment reference to be provided by the employer
3. Post-termination Restrictions: Confirmation of continued validity of existing restrictive covenants or new restrictions
4. Outplacement Support: Details of any career transition or outplacement support to be provided
5. Company Announcements: Agreed form of internal and external communications regarding departure
1. Schedule 1: Claims: Comprehensive list of statutory and common law claims being waived
2. Schedule 2: Adviser's Certificate: Independent legal adviser's confirmation of advice provided
3. Schedule 3: Reference Template: Agreed form of reference where applicable
4. Schedule 4: Payment Schedule: Detailed breakdown of all payments to be made including timing
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