An Employment Separation Agreement is a crucial document used in New Zealand when formally ending an employment relationship by mutual agreement. It's typically used in situations involving redundancy, mutual separation, or negotiated exits, providing a clear framework for the termination process while ensuring compliance with New Zealand employment law. The agreement protects both employer and employee interests by documenting all separation terms, including final payments, confidentiality obligations, and post-employment restrictions. It helps prevent future disputes by clearly outlining each party's rights and obligations, incorporating requirements from the Employment Relations Act 2000 and other relevant New Zealand legislation. This document is particularly important for managing legal risk and ensuring a professional, well-documented conclusion to the employment relationship.
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1. Parties: Identifies the employer and employee who are parties to the agreement
2. Background: Sets out the context of the employment relationship and the circumstances leading to separation
3. Definitions: Defines key terms used throughout the agreement
4. Termination Date: Specifies the official end date of employment and final working day
5. Final Payment: Details the calculation and components of the final payment, including salary, leave entitlements, and any special payments
6. Company Property: Lists company property to be returned and deadline for return
7. Confidentiality: Confirms ongoing obligations regarding confidential information
8. Non-Disparagement: Mutual obligations to refrain from making negative statements about each other
9. Release and Waiver: Mutual release of claims, subject to exceptions required by law
10. Tax Treatment: Clarifies tax handling of payments and employer obligations
11. Governing Law: Confirms New Zealand law governs the agreement
12. Execution: Signing provisions and declaration of independent legal advice
1. Garden Leave: Used when employee will remain employed but not work during notice period
2. Post-Employment Restrictions: Include when implementing non-compete or non-solicitation provisions
3. Reference: Include when agreeing to provide a reference and its form
4. Outplacement Support: Used when providing career transition services
5. Share Options/Benefits: Include when addressing treatment of employee share schemes or long-term benefits
6. Redundancy Payment: Include when separation is due to redundancy
7. Medical Insurance Continuation: Used when extending medical benefits post-employment
8. Ongoing Cooperation: Include when employee's assistance may be needed for transition or future matters
1. Schedule 1 - Final Payment Calculation: Detailed breakdown of all payment components including holiday pay, notice pay, and special payments
2. Schedule 2 - Company Property Register: Itemized list of company property to be returned
3. Schedule 3 - Confidential Information: Specific details of confidential information and intellectual property
4. Appendix A - Reference Letter: Agreed form of reference letter if applicable
5. Appendix B - Handover Plan: Detailed plan for transitioning responsibilities
6. Appendix C - Benefits Summary: Summary of treatment of various benefits and entitlements post-employment
Relevant legal definitions
Clauses
Relevant Industries
Technology
Financial Services
Manufacturing
Retail
Healthcare
Professional Services
Education
Construction
Hospitality
Mining
Agriculture
Transportation
Media and Entertainment
Telecommunications
Real Estate
Energy
Relevant Teams
Human Resources
Legal
Finance
Operations
Sales
Marketing
Information Technology
Research and Development
Customer Service
Production
Administration
Executive Leadership
Quality Assurance
Supply Chain
Business Development
Relevant Roles
Chief Executive Officer
Managing Director
Department Manager
Senior Executive
Project Manager
Technical Specialist
Sales Representative
Administrative Assistant
Operations Manager
Financial Controller
Human Resources Manager
Marketing Director
Software Developer
Account Manager
Research Scientist
Production Supervisor
Customer Service Representative
Business Analyst
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