The Mutual Termination Agreement is used when both employer and employee agree to end their employment relationship amicably under Maltese law. This document is particularly relevant in situations such as voluntary departures, restructuring, or when parties wish to negotiate a clean break from the employment relationship. It ensures compliance with Malta's Employment and Industrial Relations Act and related legislation while protecting both parties' interests. The agreement typically includes details about final payments, benefit settlements, confidentiality obligations, and mutual releases. It's particularly important in Malta's business environment where maintaining good relationships and legal compliance are crucial for both employers and employees in the relatively small business community.
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1. Parties: Identification of the employer and employee with full legal names and addresses
2. Background: Brief description of the employment relationship, reference to original employment contract, and mutual decision to terminate
3. Definitions: Definitions of key terms used in the agreement
4. Termination Date: Specification of the exact date when the employment relationship will end
5. Final Payments: Details of final salary, pro-rated bonuses, and outstanding benefits to be paid
6. Company Property: Requirements for return of company property including equipment, documents, and access cards
7. Confidentiality: Ongoing obligations regarding confidential information
8. Full and Final Settlement: Mutual release of claims and confirmation that the agreement represents full and final settlement
9. Tax Indemnity: Clarification of tax responsibilities for any payments made under the agreement
10. Governing Law: Confirmation that the agreement is governed by Maltese law
11. Entire Agreement: Confirmation that this document represents the entire agreement between the parties
1. Post-Termination Restrictions: Restatement or modification of any non-compete or non-solicitation obligations, if applicable from original contract
2. Reference: Agreement on the form and content of future employment references
3. Outplacement Support: Details of any career transition or outplacement support being provided
4. Garden Leave: Terms of any garden leave period before the termination date
5. Legal Costs: Agreement on payment of legal fees for reviewing the agreement
6. Announcement: Agreed form of internal and external communications regarding the departure
7. Share Options/Benefits: Treatment of any outstanding share options, long-term incentives or benefits
8. Resignation from Directorships: Process for resignation from any corporate directorships or offices held
1. Schedule 1 - Payment Calculation: Detailed breakdown of all payments to be made under the agreement
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Agreed Reference: Template of agreed employment reference if applicable
4. Appendix A - Resignation Letter: Template or copy of formal resignation letter
5. Appendix B - Public Announcement: Agreed form of any public or internal announcement if applicable
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