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Separation Agreement And Release

Separation Agreement And Release Template for India

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Key Requirements PROMPT example:

Separation Agreement And Release

"I need a Separation Agreement and Release under Indian law for a senior IT manager who is voluntarily resigning effective March 15, 2025, with special attention to intellectual property protection and a 6-month non-compete clause."

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Document background
The Separation Agreement and Release is a crucial document used in India when formally terminating an employment relationship, whether through mutual agreement, resignation, or termination. It serves as a comprehensive record of the separation terms while ensuring compliance with Indian labor laws and regulations. This document is particularly important in protecting both employer and employee interests by clearly outlining final settlements, statutory benefits, and mutual releases from future claims. The agreement typically includes provisions for confidentiality, non-disparagement, and return of company property, while addressing specific requirements under Indian legislation such as the Industrial Disputes Act, 1947 and the Payment of Gratuity Act, 1972. It's essential for risk management and provides legal certainty for both parties in documenting the end of the employment relationship.
Suggested Sections

1. Parties: Identifies the employer and employee entering into the agreement, including their legal names, addresses, and any relevant corporate details

2. Background: Outlines the employment history, current position, and circumstances leading to separation

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

4. Separation Date and Terms: Specifies the effective date of separation and basic terms of the termination

5. Final Settlement: Details the calculation and payment of final settlement including salary, bonus, and other compensation

6. Statutory Benefits: Addresses mandatory benefits under Indian law including gratuity, provident fund, and leave encashment

7. Release and Waiver: Mutual release of claims and waiver of rights by both parties

8. Company Property: Requirements for return of company property, documents, and data

9. Confidentiality Obligations: Ongoing obligations regarding confidential information and trade secrets

10. Non-Disparagement: Mutual agreements regarding non-disparagement

11. References: Agreement on how employment references will be handled

12. Governing Law: Specifies Indian law as governing law and jurisdiction for disputes

13. General Provisions: Standard clauses including severability, entire agreement, and amendments

Optional Sections

1. Non-Compete and Non-Solicitation: Restrictions on future employment and solicitation of employees/customers (include only if appropriate under Indian law and circumstances)

2. Equity/Stock Options: Treatment of any outstanding equity compensation or stock options

3. Retirement Benefits: Special provisions for retirement-eligible employees

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

5. Medical Benefits Continuation: Extended medical coverage terms if applicable

6. Legal Consultation: Provisions regarding reimbursement for legal consultation

7. Cooperation in Transition: Terms for knowledge transfer and transition assistance

8. Dispute Resolution: Specific procedures for resolving disputes through arbitration or mediation

Suggested Schedules

1. Schedule A - Calculation of Final Settlement: Detailed breakdown of all payment components including basic salary, allowances, and statutory dues

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

3. Schedule C - Benefits Summary: Summary of benefits and their treatment post-separation

4. Schedule D - Outstanding Loans/Advances: Details of any outstanding loans or advances and their settlement

5. Schedule E - Confidential Information: Specific list of confidential information and trade secrets

6. Appendix 1 - Release Form: Detailed release and waiver form as per Indian legal requirements

7. Appendix 2 - Statutory Declarations: Required statutory declarations and forms

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
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Relevant Industries

Information Technology

Manufacturing

Financial Services

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Relevant Teams

Human Resources

Legal

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Finance

Operations

Senior Management

Administration

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Corporate Governance

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Senior Manager

Project Manager

Software Engineer

Sales Executive

Operations Manager

Human Resources Manager

Marketing Director

Account Manager

Research Analyst

Business Development Manager

Department Head

Vice President

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Administrative Officer

Finance Manager

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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