Document background
The Severance Payment Agreement is utilized when an employment relationship is being terminated and the parties wish to document the terms of separation, including financial compensation and ongoing obligations. This document is crucial in Irish employment contexts where employers need to ensure compliance with statutory requirements while providing additional benefits beyond statutory minimums. It typically comes into play during redundancies, mutual separations, or other termination scenarios where the employer is offering a payment package. The agreement must comply with Irish employment law, including the Redundancy Payments Acts, Unfair Dismissals Acts, and relevant tax legislation. It serves to protect both parties by clearly documenting the terms of separation and helping prevent future disputes.
