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Healthy Separation Agreement Template for Australia

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Key Requirements PROMPT example:

Healthy Separation Agreement

"I need a Healthy Separation Agreement for a senior technical director departing on March 1, 2025, including provisions for unvested stock options, ongoing consultancy arrangements for 6 months, and protection of intellectual property developed during their tenure."

Document background
A Healthy Separation Agreement is a specialized employment document used in Australia when an employer and employee mutually agree to end their employment relationship in a professional and amicable manner. This document is particularly valuable when both parties wish to maintain positive professional relationships and protect their respective interests. The agreement typically becomes relevant during voluntary departures, mutual separations, or organizational restructuring where a dignified exit process is desired. A properly structured Healthy Separation Agreement addresses key aspects including financial settlements, confidentiality provisions, ongoing obligations, and mutual releases, all while ensuring compliance with Australian employment law, including the Fair Work Act 2009 and relevant state legislation. It serves as a comprehensive record of the separation terms while promoting a smooth transition for all parties involved.
Suggested Sections

1. Parties: Identifies and defines the employer and employee who are parties to the agreement

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

3. Definitions: Defines key terms used throughout the agreement

4. Termination Date: Specifies the official end date of employment and final working day

5. Separation Terms: Details the core terms of the separation including notice period and transition arrangements

6. Financial Settlement: Outlines all financial elements including final salary, leave entitlements, and any additional payments

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

8. Mutual Obligations: Details the responsibilities of both parties during the transition period

9. Return of Property: Lists company property to be returned and timeline

10. Confidentiality: Outlines ongoing confidentiality obligations

11. Non-Disparagement: Mutual commitment to maintain professional communication about the separation

12. Release and Waiver: Mutual release of claims, subject to terms of the agreement

13. References: Agreement on the handling of future employment references

14. Governing Law: Specifies that Australian law governs the agreement

15. Execution: Signing provisions and attestation

Optional Sections

1. Post-Employment Restrictions: Non-compete and non-solicitation provisions, if applicable to the role

2. Intellectual Property: Specific IP provisions for roles involving creation of IP

3. Ongoing Cooperation: Terms for future assistance in litigation or knowledge transfer, if needed

4. Benefits Continuation: Details of any benefits extending beyond termination

5. Equity/Share Treatment: Handling of stock options or share schemes if applicable

6. Outplacement Services: Details of career transition support if provided

7. Legal Advice: Acknowledgment of independent legal advice if provided

8. Media Communication: Specific provisions for public announcements if needed for senior roles

9. Garden Leave: Terms of garden leave if applicable during notice period

Suggested Schedules

1. Schedule 1 - Financial Entitlements: Detailed breakdown of all financial components including calculations

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

3. Schedule 3 - Handover Plan: Detailed transition plan and knowledge transfer requirements

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

5. Appendix B - Reference Letter: Agreed form of reference letter if applicable

6. Appendix C - Announcement Template: Approved internal/external communication templates if required

Authors

Alex Denne

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

Relevant legal definitions



































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Relevant Industries

Professional Services

Financial Services

Technology

Healthcare

Education

Manufacturing

Retail

Telecommunications

Mining and Resources

Construction

Legal Services

Consulting

Media and Entertainment

Real Estate

Non-Profit

Relevant Teams

Human Resources

Legal

Executive Leadership

Finance

Operations

Sales

Marketing

Information Technology

Research and Development

Business Development

Product Development

Customer Service

Administration

Strategy

Relevant Roles

Chief Executive Officer

Senior Executive

Department Manager

Project Manager

Senior Professional

Technical Specialist

Senior Sales Representative

Business Development Manager

Financial Controller

Operations Manager

Human Resources Director

Legal Counsel

Marketing Director

Research Scientist

Senior Engineer

Product Manager

Account Director

Department Head

Regional Manager

Senior Consultant

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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