An Employee Resignation Agreement is a crucial document used in the Indian corporate environment when an employee decides to voluntarily terminate their employment relationship. This agreement becomes necessary to formalize the resignation process and protect both parties' interests under Indian law. The document typically comes into play after an employee submits their resignation and before their last working day, ensuring all aspects of the separation are properly documented and legally compliant. It addresses key elements such as notice period requirements under Indian labor laws, final settlement calculations including statutory dues, confidentiality obligations, and the return of company assets. The agreement helps prevent future disputes by clearly documenting the terms of separation and ensuring compliance with various Indian labor laws, including the Industrial Disputes Act and relevant state-specific legislation.
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1. Parties: Identification of the employer and the resigning employee with full legal names and addresses
2. Background: Brief context about the employment relationship, including start date, current position, and decision to resign
3. Definitions: Key terms used throughout the agreement including 'Effective Date', 'Final Settlement', 'Company Property', etc.
4. Resignation and Effective Date: Formal resignation statement and specification of the last working day
5. Notice Period: Details of the notice period being served or waived, including any adjustments
6. Final Settlement: Terms regarding final salary, benefits, and other compensation due to the employee
7. Company Property: Requirements for returning company assets, equipment, and documents
8. Confidentiality Obligations: Ongoing obligations regarding confidential information and trade secrets
9. General Release: Mutual release of claims and liabilities between parties
10. Governing Law and Jurisdiction: Specification of applicable Indian law and jurisdiction for disputes
1. Non-Compete Clause: Restrictions on future employment with competitors (include for senior positions or when employee had access to sensitive information)
2. Non-Solicitation: Restrictions on soliciting company employees or clients (relevant for client-facing or management roles)
3. Intellectual Property Rights: Provisions regarding IP created during employment (important for technical or creative roles)
4. Handover Process: Detailed transition plan for ongoing projects and responsibilities (for complex roles or management positions)
5. Reference and Announcement: Terms regarding how the departure will be communicated and reference provisions (useful for amicable separations)
6. Stock Options/Share Treatment: Handling of any equity compensation (for employees with stock options or shares)
7. Outstanding Loans/Advances: Settlement of any pending loans or advances (if applicable)
8. Post-Employment Benefits: Any continued benefits or insurance coverage (for senior executives or special cases)
1. Schedule A - Final Settlement Calculation: Detailed breakdown of all payment components including salary, benefits, deductions, and statutory dues
2. Schedule B - Company Property List: Itemized list of company assets and documents to be returned
3. Schedule C - Ongoing Projects Status: List of current projects and their status for handover purposes
4. Schedule D - Confidential Information: Specific details of confidential information and trade secrets covered under confidentiality obligations
5. Schedule E - Benefits Summary: Summary of benefits and their treatment post-resignation (insurance, retirement benefits, etc.)
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