Document background
The Mutual Termination of Employment agreement is used when both employer and employee in New Zealand agree to end their employment relationship amicably. This document is particularly relevant when parties wish to formalize their agreement to part ways on mutually acceptable terms, outside of standard resignation or dismissal processes. It provides legal protection for both parties under New Zealand employment law, particularly the Employment Relations Act 2000, by clearly documenting the agreed terms of separation, including final payments, confidentiality obligations, and mutual releases. The agreement helps prevent future disputes by establishing clear terms for the separation and ensuring all statutory obligations are met. It's commonly used during restructuring, career changes, or when both parties agree that the employment relationship has run its course.
