The Termination And Mutual Release Agreement is a crucial document used in Irish employment law contexts when formalizing the end of an employment relationship, particularly in situations involving senior employees, complex termination arrangements, or potential disputes. It serves to document all agreed terms of separation while providing legal protection to both parties through mutual releases and waivers. The agreement typically accompanies both voluntary departures and negotiated exits, ensuring compliance with Irish employment legislation, including the Unfair Dismissals Acts and Employment Equality Acts. It addresses essential elements such as final payments, benefits, tax treatment, continuing obligations, and the release of potential claims, while preserving certain statutory rights that cannot be waived under Irish law.
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1. Parties: Identifies and defines all parties to the agreement, including full legal names and addresses
2. Background: Recitals explaining the context of the employment relationship and the circumstances leading to termination
3. Definitions: Defines key terms used throughout the agreement
4. Termination Date: Specifies the effective date of employment termination and final working day
5. Payment Terms: Details all payments to be made, including final salary, notice pay, and any ex-gratia payments
6. Tax Treatment: Explains the tax treatment of various payments and responsibilities for tax liabilities
7. Company Property: Requirements for return of company property and confirmation of compliance
8. Mutual Release: Comprehensive mutual release of claims between parties
9. Continuing Obligations: Specifies obligations that survive termination, such as confidentiality and intellectual property
10. Reference: Terms regarding future employment references
11. Non-Disparagement: Mutual obligations regarding non-disparagement
12. Governing Law: Specifies Irish law as governing law and jurisdiction
13. Entire Agreement: Confirms this agreement supersedes all previous agreements regarding termination
14. Execution: Signature blocks and execution provisions
1. Garden Leave: Include when employee is placed on garden leave during notice period
2. Post-Termination Restrictions: Include when enforcing existing or new post-termination restrictive covenants
3. Legal Costs: Include when addressing payment of legal fees for advice on the agreement
4. Share Options/Awards: Include when dealing with existing share options or equity arrangements
5. Outplacement Support: Include when providing career transition services
6. Director Resignations: Include when employee holds directorship positions
7. Press Announcement: Include when parties agree on public communications about the departure
8. Protected Disclosures Carve-Out: Include specific language preserving whistleblowing rights under Irish law
9. Benefits Continuation: Include when extending certain benefits post-termination
10. Data Protection: Include detailed GDPR compliance provisions when specific data handling arrangements are needed
1. Schedule 1: Payment Calculation: Detailed breakdown of all payments including salary, benefits, bonuses, and statutory entitlements
2. Schedule 2: Company Property List: Itemized list of company property to be returned
3. Schedule 3: Post-Termination Restrictions: Full text of any post-termination restrictive covenants
4. Schedule 4: Employee Benefits: Details of any benefits and their treatment post-termination
5. Schedule 5: Outstanding Claims: List of any specific claims being settled
6. Appendix A: Resignation Letter: Template or copy of formal resignation letter
7. Appendix B: Director Resignation Letters: Templates for resignation from directorship positions
8. Appendix C: Agreed Reference: Text of agreed employment reference
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