Document background
The Mutual Severance Agreement is a critical document used in Nigerian employment law contexts when an employer and employee agree to terminate their employment relationship on mutually acceptable terms. This document is particularly important in situations where both parties wish to ensure a clean break while protecting their respective interests. It typically comes into play during corporate restructuring, voluntary separation programs, or when senior executives depart from an organization. The agreement must comply with Nigerian labour laws, including the Labour Act and relevant employment regulations. It covers essential elements such as severance payments, benefits continuation, confidentiality obligations, and releases of claims, while also addressing specific requirements under Nigerian tax and pension laws.
