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Termination Addendum Template for New Zealand

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Key Requirements PROMPT example:

Termination Addendum

"I need a Termination Addendum for a mutual separation agreement with our senior software developer, including a 3-month notice period and continuing confidentiality obligations, with the termination to take effect from March 15, 2025."

Document background
The Termination Addendum is a crucial document used in New Zealand employment contexts when an employment relationship is being ended. It serves as a formal modification to an existing employment agreement, documenting the mutually agreed terms of separation or unilateral termination in compliance with New Zealand employment law. This document should be used whenever an employment relationship is being terminated, whether by mutual agreement, redundancy, or other circumstances. The addendum typically includes essential information such as termination date, notice period, final payments, ongoing obligations, and return of company property. It ensures legal compliance while providing clarity and protection for all parties involved, particularly considering the requirements of the Employment Relations Act 2000 and other relevant New Zealand legislation.
Suggested Sections

1. Parties: Identification of the employer and employee, including full legal names and positions

2. Background: Reference to the original employment agreement, reason for the addendum, and context of the termination

3. Definitions: Key terms used in the addendum, including reference to defined terms in the original agreement

4. Termination Date: Clear specification of the last day of employment

5. Notice Period: Details of notice period being given or payment in lieu of notice

6. Final Payment: Breakdown of final payment including salary, holiday pay, and other entitlements

7. Return of Company Property: Requirements and timeline for returning company assets and materials

8. Confidentiality: Confirmation of ongoing confidentiality obligations post-employment

9. Execution: Signature blocks and execution details for all parties

Optional Sections

1. Redundancy Payment: Include when termination is due to redundancy, specifying calculation and payment terms

2. Garden Leave: Include when employee is to remain employed but not attend work during notice period

3. Post-Employment Restrictions: Include when reinforcing or modifying existing restraint of trade or non-compete clauses

4. References: Include when specifying arrangements for future employment references

5. Ongoing Benefits: Include when certain benefits will continue post-employment

6. Mutual Release: Include when parties agree to release each other from future claims

7. Assistance with Transition: Include when employee is required to assist with handover or knowledge transfer

8. Legal Advice: Include when acknowledging that parties have had opportunity to seek independent legal advice

Suggested Schedules

1. Schedule 1 - Final Payment Calculation: Detailed breakdown of all final payments including holiday pay, outstanding wages, and any special payments

2. Schedule 2 - Company Property Register: List of all company property to be returned and confirmation of return

3. Schedule 3 - Handover Plan: Detailed plan for transition of duties and responsibilities

4. Appendix A - Compliance Certificate: Confirmation of compliance with all termination requirements and return of property

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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