The Labor Release Form is a crucial document used in the Indian employment context when formally concluding an employment relationship. It serves multiple purposes: documenting the termination of employment, confirming settlement of all dues and obligations, and providing mutual releases from future claims. This document must comply with various Indian labor laws including the Industrial Disputes Act 1947, Payment of Wages Act 1936, and relevant state-specific legislation. It's particularly important in scenarios involving voluntary resignation, mutual separation, or termination of employment where a clear record of settlement and release is required. The form typically includes details of final settlements, statutory benefits, company property return, and continuing obligations, making it an essential tool for risk management and legal compliance in employment terminations.
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1. Date and Parties: Identification of the employer and employee with full legal names and addresses
2. Background: Brief description of the employment relationship, including start date, position, and reason for termination
3. Definitions: Key terms used in the release form including 'Company', 'Employee', 'Claims', 'Settlement Amount'
4. Settlement Amount: Details of the total settlement amount being paid to the employee
5. Acknowledgment of Payments: Employee's confirmation of receiving all dues including salary, benefits, and statutory payments
6. Release of Claims: Comprehensive release clause where employee waives all claims against the employer
7. Return of Company Property: Confirmation of return of all company assets, documents, and confidential information
8. Continuing Obligations: Surviving obligations such as confidentiality and non-disclosure
9. General Terms: Standard clauses including governing law, jurisdiction, and entire agreement
10. Execution: Signature blocks for both parties and witnesses
1. Non-Compete Obligations: Include when the employee was subject to non-compete restrictions that continue post-employment
2. Benefits Continuation: Include when certain benefits continue for a period post-termination
3. Stock Options/Share-Based Benefits: Include when employee has stock options or share-based compensation
4. Gratuity Declaration: Include when employee has completed 5 years of service and is eligible for gratuity
5. Contractor Release: Include when employee was engaged through a contractor
6. Legal Consultation Acknowledgment: Include when employee has received legal advice before signing
1. Schedule A - Settlement Calculation: Detailed breakdown of the settlement amount including salary, notice pay, and other components
2. Schedule B - List of Company Property: Itemized list of company property to be returned
3. Schedule C - Statutory Benefits Statement: Statement of statutory benefits like PF, gratuity calculations
4. Appendix 1 - Employee Details: Complete employment details including designation history, salary history
5. Appendix 2 - Surviving Obligations: Detailed list of obligations that survive post termination
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Information Technology
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Healthcare
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Education
Telecommunications
Real Estate
Hospitality
Automotive
Energy
Media and Entertainment
Relevant Teams
Human Resources
Legal
Compliance
Employee Relations
Corporate Secretarial
Administration
Risk Management
Relevant Roles
HR Manager
Legal Counsel
HR Director
Compliance Officer
Employee Relations Manager
HR Business Partner
Legal Manager
Company Secretary
HR Operations Manager
Labor Relations Specialist
HR Administrator
Legal Associate
HR Compliance Manager
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