The Employee Release Agreement is commonly used in England and Wales when employment relationships are terminated by mutual agreement or as part of a settlement. This document serves to protect both employer and employee interests by clearly defining termination terms, including financial arrangements, confidentiality obligations, and mutual releases of claims. It must comply with UK employment law requirements, including the Employment Rights Act 1996 and the Equality Act 2010. The agreement becomes legally binding only after the employee receives independent legal advice, making it an essential tool for managing employment terminations while minimizing legal risks.
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1. Parties: Identifies the employer and employee entering into the agreement
2. Background: Sets out the context of the employment relationship and reason for termination
3. Definitions: Defines key terms used throughout the agreement
4. Termination Date: Specifies the official end date of employment
5. Payment Terms: Details all payments to be made to the employee
6. Tax Treatment: Explains tax implications of payments
7. Claims Release: Employee's waiver of claims against employer
8. Confidentiality: Obligations regarding confidential information
1. Garden Leave: Terms of garden leave provisions during notice period
2. Reference: Terms of employment reference to be provided
3. Post-termination Restrictions: Restrictive covenants and non-compete obligations
4. Company Property: Provisions regarding return of company assets and property
1. Schedule 1: Claims: List of statutory claims being settled under the agreement
2. Schedule 2: Payment Breakdown: Detailed breakdown of all payments to be made
3. Appendix 1: Adviser's Certificate: Independent legal adviser's certification of advice given
4. Appendix 2: Agreed Reference: Form of agreed reference template if applicable
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