The Employee Termination Agreement Template is designed for use under English and Welsh law when formally ending an employment relationship. This document is essential when implementing redundancies, negotiating mutual separations, or managing dismissals. It includes crucial elements such as termination date, final compensation, benefit arrangements, confidentiality provisions, and claims releases. The agreement helps ensure compliance with UK employment legislation while protecting both employer and employee interests. It should be customized based on specific circumstances and reviewed by legal counsel before use.
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1. Parties: Identification of employer and employee with full legal names and addresses
2. Background: Brief context of employment relationship and reason for termination
3. Definitions: Key terms used throughout the agreement
4. Termination Date: Specific date employment will end and final working day if different
5. Final Payment Terms: Details of salary, benefits, and other payments due
6. Company Property: Requirements for return of company assets
7. Confidentiality Obligations: Ongoing duties regarding confidential information
8. Full and Final Settlement: Waiver of claims and settlement terms
1. Garden Leave: Terms of garden leave when employee is put on paid leave during notice period
2. Reference: Terms of employment reference to be provided when agreed as part of settlement
3. Post-termination Restrictions: Non-compete and other restrictive covenants for senior employees or those with access to sensitive information
4. Share Options: Treatment of existing share options or awards when employee participates in share schemes
1. Schedule 1 - Payment Calculation: Detailed breakdown of final payment including tax treatment
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Ongoing Obligations: Detail of continuing obligations post-employment
4. Appendix A - Form of Reference: Agreed form of reference if applicable
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