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Voluntary Severance Agreement Template for Ireland

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Key Requirements PROMPT example:

Voluntary Severance Agreement

"I need a Voluntary Severance Agreement for a senior software developer in our Dublin tech company, including provisions for ongoing project handover until March 2025 and protection of intellectual property rights."

Document background
The Voluntary Severance Agreement is a crucial document used in Irish employment law contexts when an employer and employee mutually agree to terminate their employment relationship outside of standard resignation or dismissal procedures. This document is typically used during corporate restructuring, voluntary redundancy programs, or when negotiating an amicable separation with senior employees. The agreement comprehensively addresses severance payments, benefits continuation, confidentiality requirements, and waivers of claims, all while ensuring compliance with Irish employment legislation, including the Employment Rights Act 2015 and Unfair Dismissals Acts. The document provides legal certainty for both parties and helps prevent future disputes by clearly documenting all agreed terms and conditions of the separation.
Suggested Sections

1. Parties: Identification of the employer and employee, including registered addresses and company/personal details

2. Background: Context of the employment relationship and reason for voluntary severance

3. Definitions: Definitions of key terms used throughout the agreement

4. Termination Date: Specific date of employment termination and final working day arrangements

5. Severance Payment: Details of the severance package, including amount, calculation method, and payment timing

6. Tax Treatment: Explanation of tax implications and treatment of the severance payment

7. Company Property: Requirements for return of company property and documentation

8. Confidentiality: Ongoing obligations regarding confidential information

9. Employee Warranties: Employee confirmations regarding property return, confidentiality, and other obligations

10. Waiver of Claims: Employee's waiver of claims against the employer, subject to statutory restrictions

11. Reference: Arrangements for providing employment references

12. Continuing Obligations: Surviving terms from the employment contract that remain in effect

13. Entire Agreement: Confirmation that this agreement supersedes previous agreements regarding the subject matter

14. Governing Law: Specification of Irish law as governing law and jurisdiction

15. Execution: Signature blocks and execution requirements

Optional Sections

1. Garden Leave: Include when the employee will be placed on garden leave before termination

2. Post-Termination Restrictions: Include when enforcing or modifying existing post-employment restrictions

3. Director Resignations: Include when the employee holds director positions that need to be resigned

4. Share Options/Awards: Include when dealing with existing share schemes or equity arrangements

5. Intellectual Property: Include when specific IP assignments or confirmations are needed

6. Legal Advice: Include when the employee has received independent legal advice (recommended for enforceability)

7. Announcement: Include when parties need to agree on internal/external communications

8. Outplacement Support: Include when outplacement services are part of the severance package

9. Medical Insurance: Include when addressing continuation or termination of medical benefits

Suggested Schedules

1. Schedule 1: Payment Calculation: Detailed breakdown of severance payment calculation

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

3. Schedule 3: Waiver of Claims: Detailed list of statutory and common law claims being waived

4. Schedule 4: Post-Termination Restrictions: Full text of any post-termination restrictions that continue to apply

5. Schedule 5: Legal Adviser's Certificate: Certificate from independent legal adviser regarding advice given

6. Appendix A: Reference Template: Agreed form of reference to be provided

7. Appendix B: Resignation Letters: Template resignation letters for any directorships

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

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