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Employment Release Agreement Template for India

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Key Requirements PROMPT example:

Employment Release Agreement

"I need an Employment Release Agreement for a senior software engineer in our Bangalore IT company who is voluntarily resigning effective March 15, 2025, with standard non-compete and confidentiality provisions, including treatment of unvested stock options."

Document background
The Employment Release Agreement is a crucial document used in India when formally concluding an employment relationship. It serves multiple purposes: documenting the terms of separation, protecting both employer and employee interests, and ensuring compliance with Indian labor laws. This agreement becomes necessary during voluntary resignations, mutual separations, or structured terminations, particularly when there's a need to document final settlements and prevent future disputes. The document typically includes detailed provisions about financial settlements, continuing obligations, and releases of claims, all while adhering to Indian legal requirements including those under the Industrial Disputes Act and various state-specific labor laws. It's particularly important for roles involving access to sensitive information or significant company resources, and often includes specific provisions for senior management positions.
Suggested Sections

1. Parties: Identification of the employer and employee with complete legal names and addresses

2. Background: Brief overview of employment history, current circumstances, and reason for the release agreement

3. Definitions: Key terms used throughout the agreement including 'Effective Date', 'Settlement Amount', 'Claims', etc.

4. Termination of Employment: Clear statement of employment termination date and immediate effects

5. Settlement Amount and Benefits: Details of the final settlement amount and any continuing benefits

6. Release of Claims: Comprehensive release of all claims by employee against employer

7. Company Property: Requirements for return of company property and confirmation of compliance

8. Confidentiality Obligations: Ongoing confidentiality obligations and handling of sensitive information

9. Non-Disparagement: Mutual obligations regarding non-disparagement

10. References: Agreement on how future employment references will be handled

11. Tax Implications: Statement on tax treatment of settlement amounts and responsibilities

12. Governing Law and Jurisdiction: Specification of applicable law and courts for dispute resolution

13. Entire Agreement: Integration clause confirming this as the complete agreement between parties

Optional Sections

1. Equity/Stock Options: Treatment of any outstanding equity compensation, to be included if employee has stock options or RSUs

2. Non-Compete Obligations: Post-employment competition restrictions, include only if legally enforceable and necessary

3. International Law Compliance: For employees with international work history or multinational employers

4. Outplacement Services: Details of any career transition support being offered

5. Legal Counsel Acknowledgment: Confirmation that employee had opportunity to seek legal counsel, recommended for senior employees

6. Revocation Period: Specific period for employee to revoke acceptance, particularly important for senior employees

7. Continuing Cooperation: Terms for employee's assistance in transition or future matters, important for key positions

8. Medical/Insurance Benefits: Details of any continuing medical coverage or insurance benefits

Suggested Schedules

1. Schedule A - Settlement Calculation: Detailed breakdown of settlement amount including salary, benefits, and other compensation

2. Schedule B - Company Property Checklist: List of company property to be returned by the employee

3. Schedule C - Continuing Benefits Summary: Details of any benefits extending beyond termination date

4. Schedule D - Confidential Information Definition: Specific definition and examples of confidential information

5. Appendix 1 - Statutory Declarations: Required statutory declarations and forms for local law compliance

6. Appendix 2 - Exit Procedures: Checklist of exit procedures and requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Relevant Industries

Information Technology

Manufacturing

Financial Services

Healthcare

Retail

Telecommunications

Professional Services

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Hospitality

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Energy

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Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Research and Development

Administration

Executive Leadership

Product Development

Customer Service

Business Development

Compliance

Risk Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Director

Senior Manager

Project Manager

Software Engineer

HR Manager

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Account Manager

Operations Manager

Department Head

Regional Manager

Technical Lead

Financial Analyst

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Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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