The Employee Termination Agreement And Mutual Release is a crucial document used in Australian employment contexts when formally ending an employment relationship. It is particularly valuable in situations where both parties wish to achieve a clean break and minimize the risk of future disputes. The agreement comprehensively addresses termination terms, entitlements, and obligations under Australian law, including compliance with the Fair Work Act 2009 and other relevant federal legislation. It typically combines the formal documentation of the separation terms with mutual releases, where both parties agree to waive certain rights to legal claims against each other, subject to legal limitations. This document is essential for protecting both employer and employee interests, providing clarity on final payments, benefits, continuing obligations, and the terms of separation while ensuring all aspects comply with Australian employment law requirements.
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1. Parties: Identification of the employer and employee, including full legal names and relevant details
2. Background: Brief history of employment relationship, reason for termination, and context for the agreement
3. Definitions: Key terms used throughout the agreement, ensuring clear interpretation
4. Termination Date: Specific date of employment termination and last day of work
5. Final Payment: Details of final salary, notice period payments, and statutory entitlements
6. Accrued Entitlements: Calculation and payment of outstanding leave, bonuses, and other entitlements
7. Mutual Release: Comprehensive release of claims by both parties, subject to exceptions required by law
8. Company Property: Requirements for return of company property and confirmation of compliance
9. Confidentiality: Ongoing obligations regarding confidential information and trade secrets
10. Tax Treatment: Clarification of tax treatment of payments and respective responsibilities
11. Entire Agreement: Confirmation that this document represents the complete agreement between parties
12. Governing Law: Specification that Australian law governs the agreement
13. Execution: Signature blocks and execution requirements
1. Non-Disparagement: Mutual obligations not to make negative statements, used when there's risk of reputational damage
2. Post-Employment Restrictions: Reaffirmation of existing restraints of trade, used when employment contract contains these provisions
3. Reference: Terms of employment references to be provided, included when agreed as part of settlement
4. Ongoing Cooperation: Requirements for employee assistance in handover or future matters, used when needed for business continuity
5. Benefits Continuation: Any continued benefits post-termination, included when offering extended benefits
6. Legal Advice: Acknowledgment of independent legal advice, recommended for complex terminations
7. Outplacement Services: Details of career transition support, included when offered as part of package
8. Share Options/Awards: Treatment of outstanding equity arrangements, needed when employee has share schemes
9. Intellectual Property: Specific IP assignments or ongoing obligations, used in technical or creative roles
1. Schedule 1 - Payment Calculation: Detailed breakdown of all payments including statutory entitlements, ex-gratia payments, and deductions
2. Schedule 2 - Company Property Register: List of all company property to be returned
3. Schedule 3 - Outstanding Obligations: List of any projects, tasks, or responsibilities requiring handover
4. Schedule 4 - Continuing Obligations: Extract of relevant post-employment obligations from original employment contract
5. Appendix A - Deed of Release: Formal release deed if required as separate document under state law
6. Appendix B - Certificate of Independent Legal Advice: Template for legal advisor to certify provision of independent advice
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