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The Redundancy Settlement Agreement is a crucial document used in Nigerian employment law when an organization needs to terminate employment due to position redundancy. This typically occurs during corporate restructuring, economic downturns, or technological changes that lead to workforce reduction. The document serves as a legally binding contract that protects both employer and employee interests by clearly defining the terms of separation, including financial compensation, benefits continuation, and mutual obligations. It must comply with Nigerian labor laws, particularly the Labour Act and Employees Compensation Act, while addressing tax implications, pension arrangements, and any applicable industry-specific requirements. The agreement is essential for preventing future disputes and providing clear documentation of the settlement terms agreed upon by all parties.

1. Parties: Identifies the employer and employee, including full legal names and addresses

2. Background: Sets out the context of the employment relationship, reason for redundancy, and basis for the settlement

3. Definitions: Defines key terms used throughout the agreement

4. Termination Date: Specifies the official end date of employment and final working day

5. Payment Terms: Details the redundancy payment, calculation method, and payment timeline

6. Tax Treatment: Explains the tax implications of the settlement payments

7. Company Property: Lists company property to be returned and deadline for return

8. Confidentiality: Outlines confidentiality obligations regarding the agreement and company information

9. Full and Final Settlement: Confirms that the agreement represents full and final settlement of all claims

10. Employee Warranties: Employee confirmations regarding disclosure of information and absence of other employment offers

11. Reference: Terms regarding the provision of employment references

12. Legal Advice: Confirmation that the employee has received independent legal advice

13. Governing Law: Specifies Nigerian law as governing law and jurisdiction

14. Execution: Signature blocks and execution requirements