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Agreement Not To Sue Employer

Agreement Not To Sue Employer Template for Australia

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Agreement Not To Sue Employer

"I need an Agreement Not to Sue Employer drafted for a senior software developer who is leaving our tech company on March 15, 2025, following a dispute over intellectual property rights, with a settlement payment of $75,000 and continued health benefits for 6 months."

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Document background
The Agreement Not To Sue Employer is a critical legal document used in Australian employment contexts when resolving disputes or terminating employment relationships. It provides a formal framework for employers and employees to settle potential claims and achieve finality in their legal relationship. The agreement is commonly used following workplace disputes, redundancies, or negotiated exits, offering both parties certainty and closure. It must be carefully drafted to comply with Australian employment law, including federal and state legislation, and typically requires both parties to obtain independent legal advice. The document includes specific details about claims being released, consideration provided, and ongoing obligations, while ensuring that certain statutory rights that cannot be contracted out of are preserved. This type of agreement is particularly valuable in preventing future litigation while providing fair compensation for the release of claims.
Suggested Sections

1. Parties: Identifies and defines the employer and employee who are parties to the agreement

2. Background: Sets out the context of the agreement, including relevant employment history and any disputes or claims

3. Definitions: Defines key terms used throughout the agreement

4. Release and Covenant Not to Sue: Core provision where the employee agrees not to pursue legal action for specified claims

5. Consideration: Details the payment or other consideration being provided in exchange for the release

6. Acknowledgments: Employee's confirmation of understanding the agreement and having received legal advice

7. Confidentiality: Obligations regarding keeping the agreement and its terms confidential

8. Non-Disparagement: Mutual obligations not to make negative statements about each other

9. Entire Agreement: Confirms this document represents the complete agreement between parties

10. Governing Law: Specifies that Australian law governs the agreement

11. Execution: Formal signing section including witnessing requirements

Optional Sections

1. Exceptions to Release: Used when certain claims are specifically excluded from the release (e.g., workers' compensation)

2. Return of Company Property: Include when there is outstanding company property to be returned

3. Ongoing Obligations: Used when certain employment obligations continue post-termination

4. Medicare Considerations: Required if the release involves medical-related claims

5. Reference Provision: Include when parties agree on terms for future employment references

6. Cooperation in Transition: Used when employee's assistance is needed for transition of duties

7. Tax Treatment: Include when tax implications need to be specifically addressed

8. Mutual Release: Used when employer also provides release to employee

Suggested Schedules

1. Schedule 1 - Specified Claims: Detailed list of specific claims being released

2. Schedule 2 - Payment Details: Breakdown of any settlement payments and timing

3. Schedule 3 - Company Property: Itemized list of company property to be returned

4. Appendix A - Legal Advice Certificate: Certificate from legal representative confirming independent advice

5. Appendix B - Deed of Release: Formal release document if separate from main agreement

Authors

Alex Denne

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Professional Services

Financial Services

Manufacturing

Technology

Healthcare

Retail

Mining

Construction

Education

Hospitality

Telecommunications

Transport and Logistics

Agriculture

Energy and Utilities

Media and Entertainment

Relevant Teams

Human Resources

Legal

Compliance

Risk Management

Employee Relations

Corporate Affairs

Executive Leadership

Industrial Relations

Operations

Administration

Relevant Roles

Human Resources Director

HR Manager

Legal Counsel

Employment Lawyer

HR Business Partner

Compliance Officer

Risk Manager

Employee Relations Manager

Chief Human Resources Officer

General Counsel

HR Administrator

Chief Legal Officer

Industrial Relations Manager

Talent Management Director

Operations Manager

Industries
Fair Work Act 2009 (Cth): Primary federal legislation governing employment relationships and workplace rights in Australia. Important for understanding which rights cannot be waived through a deed of release.
Australian Consumer Law (Schedule 2 of the Competition and Consumer Act 2010): Relevant for ensuring the agreement doesn't contain unfair contract terms and meets requirements for consumer protection.
Workers Compensation Acts (State-specific): State-based legislation that may affect the ability to release workers' compensation claims through such an agreement.
Contract Law Acts (State-specific): Governs the formation and enforcement of contracts, including requirements for consideration and capacity to contract.
Age Discrimination Act 2004 (Cth): Ensures the agreement doesn't discriminate based on age and considers rights that cannot be waived.
Privacy Act 1988 (Cth): Relevant for handling personal information in the agreement and any confidentiality provisions.
Limitation Act (State-specific): Sets time limits for bringing legal actions and may affect the scope of claims that can be released.
Work Health and Safety Act 2011 (Cth): Relevant for understanding which workplace safety obligations and rights cannot be contracted out of.
Teams

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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