A Voluntary Severance Agreement is used when both employer and employee agree to end the employment relationship on mutually agreed terms. This document, governed by English and Welsh law, provides legal protection for both parties by clearly outlining separation terms, including financial compensation, continuation of benefits, confidentiality obligations, and waiver of potential claims. It's particularly useful during corporate restructuring, redundancy situations, or when seeking an amicable separation. The agreement must comply with UK employment legislation and requires independent legal advice to be valid.
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1. Parties: Identification of employer and employee
2. Background: Context of employment and reason for severance
3. Definitions: Key terms used throughout the agreement
4. Termination Date: Specified date of employment termination
5. Severance Payment: Amount and terms of payment
6. Tax Treatment: Tax implications and responsibilities
7. Waiver of Claims: Employee's waiver of legal claims against employer
8. Confidentiality: Obligations regarding confidential information
9. Legal Advice: Confirmation of independent legal advice
1. Garden Leave: Terms of garden leave if applicable during notice period
2. Post-termination Restrictions: Non-compete and other restrictive covenants to protect business interests
3. Reference: Terms of agreed employment reference
4. Company Property: Provisions for return of company assets and equipment
5. Outplacement Support: Terms of career transition assistance if offered
1. Schedule 1: Payment Calculation: Detailed breakdown of severance payment including statutory and ex-gratia elements
2. Schedule 2: Claims Being Settled: Comprehensive list of statutory and contractual claims being waived
3. Schedule 3: Adviser's Certificate: Independent legal adviser's confirmation of advice given
4. Appendix 1: Agreed Reference: Template of agreed employment reference
5. Appendix 2: Post-termination Restrictions: Detailed terms of continuing obligations and restrictive covenants
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