This document is essential when an employer and employee in Malta mutually agree to terminate their employment relationship. A Mutual Consent Termination agreement is used to formalize this decision and protect both parties' interests. It includes crucial details such as the termination date, final payment calculations, treatment of benefits, and any post-employment obligations. The document ensures compliance with Malta's Employment and Industrial Relations Act (EIRA) and other relevant employment legislation, while providing clarity and certainty for all parties involved. It's particularly useful in situations where both parties wish to document their agreement to end the employment relationship amicably and establish clear terms for the separation, including confidentiality provisions and mutual releases. This type of agreement helps prevent future disputes by clearly documenting all aspects of the termination arrangement.
Mutual Consent Termination for Malta
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Mutual Consent Termination
"I need a Mutual Consent Termination agreement under Maltese law for a senior software developer who will be leaving amicably on March 15, 2025, including a one-month knowledge transfer period and provisions for ongoing technical consultancy."
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1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant registration/identification numbers
2. Background: Brief context of the employment relationship and mutual decision to terminate
3. Definitions: Key terms used throughout the agreement
4. Termination Date: Specific date when employment relationship will end
5. Mutual Agreement to Terminate: Express statement of mutual consent to terminate the employment relationship
6. Final Payment Terms: Details of final salary, pro-rated bonuses, and other statutory payments
7. Leave and Benefits Settlement: Settlement of unused vacation days and other accrued benefits
8. Release and Waiver: Mutual release of claims and liabilities
9. Confidentiality Obligations: Ongoing confidentiality obligations post-termination
10. Tax Provisions: Clarification of tax treatment of payments
11. Governing Law: Confirmation of Maltese law as governing law
12. Entire Agreement: Standard entire agreement clause
13. Execution: Signature blocks and execution provisions
1. Post-Termination Restrictions: Non-compete and non-solicitation provisions, if applicable to the employee's role
2. Company Property: List of company property to be returned and process for return
3. Reference Provision: Terms regarding future employment references
4. Transition Arrangements: If applicable, details of knowledge transfer and handover process
5. Garden Leave: If applicable, terms of any garden leave period before final termination
6. Surviving Provisions: List of contract provisions that survive termination
7. Legal Advice: Acknowledgment of opportunity to seek independent legal advice
8. Communications: Agreed approach to internal and external communications about the termination
1. Schedule 1 - Payment Calculation: Detailed breakdown of final payment including salary, benefits, and statutory entitlements
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Surviving Obligations: Detailed list of obligations that continue post-termination
4. Appendix A - Original Employment Contract: Copy of the original employment contract for reference
5. Appendix B - Handover Plan: If applicable, detailed plan for handover of responsibilities
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