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Separation And Release Agreement Template for England and Wales

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Key Requirements PROMPT example:

Separation And Release Agreement

"I need a Separation and Release Agreement for a senior sales director who is leaving our tech company due to restructuring, with a settlement payment of £75,000 and garden leave provisions starting March 2025."

Document background
The Separation and Release Agreement is utilized when an employment relationship is being terminated by mutual consent or as part of a negotiated exit. This document is crucial in English and Welsh employment law as it provides legal certainty to both parties by clearly defining the terms of separation and preventing future disputes. It must comply with specific statutory requirements, including the provision of independent legal advice to the employee. The agreement typically covers financial settlements, confidentiality obligations, post-employment restrictions, and mutual releases of claims, while ensuring protection for both employer and employee interests.
Suggested Sections

1. Parties: Identification of employer and employee with full legal names and addresses

2. Background: Brief context of employment relationship and reason for separation

3. Definitions: Key terms used throughout the agreement including defined terms for Employer, Employee, Termination Date, etc.

4. Termination Date: Specific date employment ends and final working day if different

5. Payment Terms: Details of all payments including salary, benefits, and settlement sum

6. Tax Treatment: Tax implications of payments and indemnities

7. Release of Claims: Waiver of claims against employer and related entities

8. Confidentiality: Obligations regarding confidential information and terms of the agreement

Optional Sections

1. Garden Leave: Terms of garden leave period and obligations during this time

2. Reference: Terms of employment reference and agreement on how future employment inquiries will be handled

3. Post-termination Restrictions: Non-compete and other restrictive covenants that survive employment termination

4. Company Property: Provisions regarding return of company assets, equipment, and documents

Suggested Schedules

1. Schedule 1: Payment Details: Detailed breakdown of all payments and benefits to be provided

2. Schedule 2: Claims Being Settled: Comprehensive list of specific claims being waived under the agreement

3. Appendix 1: Adviser's Certificate: Independent legal adviser's confirmation of advice given as required by Section 203 ERA

4. Appendix 2: Agreed Reference: Template of agreed employment reference to be provided to future employers

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 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
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Industries

Employment Rights Act 1996: Primary legislation covering statutory employment rights, notice periods, unfair dismissal, and minimum statutory requirements for termination. Section 203 specifically addresses requirements for validly waiving statutory claims.

Equality Act 2010: Ensures the separation agreement doesn't discriminate based on protected characteristics and that release clauses are non-discriminatory.

Companies Act 2006: Sets out trading disclosure and company communications requirements, including necessary company details that must appear on legal documents.

Employment Tribunals Act 1996: Governs the waiver of rights to bring claims before employment tribunals and related procedural requirements.

TUPE Regulations 2006: Transfer of Undertakings (Protection of Employment) Regulations - relevant if the separation involves business transfers or reorganizations.

ACAS Code of Practice: Provides best practice guidelines for handling terminations and employment separations.

Data Protection Act 2018: Governs the handling of personal data post-employment and ensures compliance with data protection principles.

UK GDPR: Supplements the Data Protection Act 2018 with additional requirements for processing and protecting personal data in the UK context.

Common Law Principles: Legal principles regarding restraint of trade, confidentiality, and post-termination restrictions developed through case law.

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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