The Mutual Termination of Employment agreement is utilized when both employer and employee in Malta mutually agree to end their employment relationship amicably. This document is essential for ensuring legal compliance with Maltese employment law while protecting both parties' interests. It should be used when there is genuine mutual consent to terminate the employment contract, rather than in cases of unilateral termination or dismissal. The agreement typically includes comprehensive details about final settlements, benefit calculations, post-employment obligations, and confidentiality requirements. It must comply with the Employment and Industrial Relations Act and other relevant Maltese legislation, making it particularly important to have proper legal review and documentation of the mutual agreement to prevent future disputes.
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1. Parties: Identification of the employer and employee, including full legal names, addresses, and registration/identification numbers
2. Background: Brief overview of the employment relationship, including start date, position, and mutual decision to terminate
3. Definitions: Definitions of key terms used throughout the agreement
4. Termination Date: Clear specification of the employment termination date and last working day
5. Final Payment and Benefits: Details of salary, notice pay, pro-rated bonuses, and other benefits due until termination
6. Tax and Social Security: Confirmation that all payments will be subject to applicable tax and social security deductions
7. Company Property: Requirements for returning company property and documents
8. Confidentiality: Ongoing obligations regarding confidential information
9. Full and Final Settlement: Confirmation that the agreement represents full and final settlement of all claims
10. Governing Law: Confirmation that the agreement is governed by Maltese law
11. Execution: Signature blocks and execution requirements
1. Garden Leave: Include when the employee will be placed on garden leave during notice period
2. Post-termination Restrictions: Include when enforcing existing or negotiating new non-compete or non-solicitation clauses
3. Reference: Include when parties agree on the content and format of future employment references
4. Legal Advice: Include when the employee has received independent legal advice on the agreement
5. Announcement: Include when parties agree on how the departure will be communicated
6. Share Options/Long-term Incentives: Include when addressing treatment of existing share options or long-term incentive plans
7. Outplacement Support: Include when the employer is providing career transition services
8. Medical Insurance Extension: Include when continuing medical benefits beyond termination
1. Schedule 1 - Payment Calculation: Detailed breakdown of all payments including salary, notice pay, leave encashment, and other benefits
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Ongoing Benefits: Details of any benefits continuing post-termination
4. Appendix A - Existing Employment Contract: Copy of relevant sections from existing employment contract being terminated
5. Appendix B - Legal Rights Summary: Summary of employee's legal rights under Maltese law
Relevant legal definitions
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Financial Services
Technology
Manufacturing
Retail
Healthcare
Professional Services
Tourism and Hospitality
Education
Construction
Transportation and Logistics
Gaming and iGaming
Maritime
Telecommunications
Pharmaceuticals
Energy
Relevant Teams
Human Resources
Legal
Finance
Operations
Information Technology
Sales
Marketing
Administration
Research and Development
Customer Service
Business Development
Compliance
Risk Management
Relevant Roles
Chief Executive Officer
Managing Director
Department Head
Senior Manager
Project Manager
Software Developer
Financial Analyst
HR Manager
Sales Representative
Marketing Executive
Operations Manager
Administrative Assistant
Technical Specialist
Customer Service Representative
Research Analyst
Account Manager
Legal Counsel
Product Manager
Business Development Manager
Executive Assistant
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