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Mutual Employment Termination Agreement Template for Australia

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Key Requirements PROMPT example:

Mutual Employment Termination Agreement Template

"I need a Mutual Employment Termination Agreement Template for a senior software developer who is leaving our tech startup by mutual agreement in March 2025, including provisions for handling unvested stock options and ongoing consultation for knowledge transfer."

Document background
The Mutual Employment Termination Agreement Template is designed for use in Australian employment contexts where both employer and employee have agreed to end their employment relationship by mutual consent. This document is particularly valuable when parties wish to document the terms of separation clearly and ensure a smooth transition while protecting both parties' interests. The agreement template includes provisions for final payments, mutual releases, confidentiality obligations, and other key terms in compliance with Australian employment law. It's specifically structured to address requirements under the Fair Work Act 2009 and related legislation, making it suitable for various industries and employment arrangements. The template is designed to be customizable while maintaining essential legal protections and ensuring all statutory obligations are met.
Suggested Sections

1. Parties: Identifies and defines the employer and employee entering into the agreement

2. Background: Outlines the context of the employment relationship and the mutual decision to terminate

3. Definitions: Defines key terms used throughout the agreement

4. Termination Date and Final Working Day: Specifies the official termination date and last day of work

5. Final Payment and Entitlements: Details all payments due including salary, leave entitlements, and other benefits

6. Mutual Release: Contains mutual releases from future claims related to the employment

7. Tax Treatment: Specifies the tax treatment of various payment components

8. Return of Company Property: Lists requirements for returning company assets and property

9. Confidentiality Obligations: Confirms ongoing confidentiality obligations post-employment

10. General Provisions: Standard contract clauses including governing law, entire agreement, and amendments

11. Execution: Signature blocks and execution requirements

Optional Sections

1. Garden Leave: Include when the employee will be paid but not required to work during notice period

2. Post-Employment Restrictions: Include when there are specific non-compete or non-solicitation requirements

3. Ongoing Cooperation: Include when employee's assistance may be needed for transition or future matters

4. Reference and Announcement: Include when parties agree on specific terms about employment references and public announcements

5. Intellectual Property Rights: Include when there are specific IP matters to address post-termination

6. Outstanding Employee Benefits: Include when dealing with unvested benefits, stock options, or long-term incentives

7. Legal Advice: Include when confirming that parties have received independent legal advice

Suggested Schedules

1. Schedule 1 - Calculation of Final Payment: Detailed breakdown of all payment components including salary, leave, and other entitlements

2. Schedule 2 - Company Property Register: Itemized list of company property to be returned

3. Schedule 3 - Continuing Obligations: Detailed list of ongoing obligations from the original employment contract that survive termination

4. Appendix A - Deed of Release: Formal release of claims document

5. Appendix B - Certificate of Independent Legal Advice: If required, certificates from legal advisors confirming advice provided to parties

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

Relevant legal definitions

































Clauses



































Relevant Industries

Professional Services

Financial Services

Technology

Manufacturing

Retail

Healthcare

Education

Mining

Construction

Hospitality

Telecommunications

Media and Entertainment

Transportation and Logistics

Energy and Utilities

Government and Public Sector

Relevant Teams

Human Resources

Legal

Compliance

People Operations

Employee Relations

Executive Leadership

Operations Management

Administration

Risk Management

Relevant Roles

Human Resources Manager

HR Director

Legal Counsel

Employment Lawyer

HR Business Partner

Compliance Officer

HR Administrator

People Operations Manager

Chief Human Resources Officer

Employee Relations Manager

HR Coordinator

Talent Management Director

Department Manager

Line Manager

Chief Executive Officer

Chief Operating Officer

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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