Document background
The Employee Severance Agreement is a crucial document used in Nigeria when formalizing the end of an employment relationship, particularly in situations involving redundancy, mutual separation, or negotiated exits. This document is essential for protecting both employer and employee interests while ensuring compliance with Nigerian employment legislation, including the Labour Act, Pension Reform Act, and Employee's Compensation Act. It is typically used when companies need to document severance terms, outline post-employment obligations, and provide clarity on final benefits and payments. The agreement becomes particularly important in cases involving senior executives, long-term employees, or situations where significant severance packages are being offered. It helps prevent future disputes by clearly documenting all aspects of the separation, from financial terms to ongoing obligations.
