The Employee Exit Agreement is a crucial document used in Ireland when formalizing the termination of employment relationships, whether through mutual agreement, redundancy, or other circumstances. It serves as a comprehensive record of the terms agreed upon between employer and employee, ensuring compliance with Irish employment law while protecting both parties' interests. The agreement typically covers essential elements such as termination payments, benefits, confidentiality obligations, and claim waivers, all structured within the framework of Irish employment legislation. This document is particularly important in scenarios involving senior executives, sensitive departures, or situations where clear documentation of separation terms is crucial for risk management. The agreement must comply with various Irish statutes, including the Unfair Dismissals Acts 1977-2015 and the Employment Equality Acts 1998-2015, while also addressing practical aspects of the employment termination.
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1. Parties: Identifies the employer and employee, including their full legal names and addresses
2. Background: States the context of the agreement, including employment history and reason for termination
3. Definitions: Defines key terms used throughout the agreement
4. Termination Date: Specifies the official end date of employment and final working day if different
5. Payment Terms: Details all payments due, including final salary, notice pay, and any ex-gratia payments
6. Tax Treatment: Explains the tax implications of all payments and who bears responsibility for tax liabilities
7. Company Property: Lists company property to be returned and deadline for return
8. Confidentiality Obligations: Outlines ongoing confidentiality obligations post-employment
9. Post-Termination Restrictions: Reaffirms existing restrictive covenants from employment contract
10. Employee Warranties: Employee confirmations regarding company information and property
11. Full and Final Settlement: Waiver of claims and full settlement provisions
12. Governing Law: Confirms Irish law governs the agreement
13. Signature Block: Space for parties to execute the agreement with witness provisions
1. Garden Leave: Include when employee is placed on garden leave during notice period
2. Legal Advice: Include when employer is contributing to legal fees for independent advice
3. Reference: Include when agreed form of reference is to be provided
4. Announcement: Include when parties agree on specific internal/external communications about departure
5. Share Options/Awards: Include when employee has share options or awards that need addressing
6. Outplacement Support: Include when employer is providing career transition services
7. Director Resignations: Include when employee holds director positions that need to be resigned
8. Continuing Obligations: Include when specific ongoing duties exist post-termination
9. Benefits Continuation: Include when certain benefits will continue post-termination
10. Cooperation Clause: Include when ongoing assistance with litigation/investigations may be needed
1. Schedule 1 - Payment Breakdown: Detailed calculation of all payments including statutory and ex-gratia amounts
2. Schedule 2 - Company Property: Comprehensive list of company property to be returned
3. Schedule 3 - Restrictive Covenants: Full text of post-termination restrictions
4. Schedule 4 - Agreed Reference: Template of agreed employment reference if applicable
5. Schedule 5 - Share Option Details: Details of treatment of share options/awards if applicable
6. Appendix A - Advisor's Certificate: Certificate from legal advisor confirming independent advice given
7. Appendix B - Director Resignation Letters: Template resignation letters from directorships if applicable
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