A Termination Agreement is essential when formally documenting the end of an employment relationship in Australia. This document is typically used when employment is terminated by mutual agreement, redundancy, or as part of a negotiated exit. The agreement must comply with Australian employment law, including the Fair Work Act 2009, National Employment Standards, and relevant state legislation. It covers crucial aspects such as termination payments, notice periods, final entitlements, confidentiality obligations, and mutual releases. The document protects both employer and employee interests by clearly defining rights, obligations, and benefits upon termination, while ensuring all legal requirements are met. This agreement is particularly important for managing legal risk and providing certainty to all parties involved in the employment separation.
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1. Parties: Identifies and defines the employer and employee parties to the agreement
2. Background: Outlines the context of the employment relationship and reason for termination
3. Definitions: Defines key terms used throughout the agreement
4. Termination Date: Specifies the effective date of employment termination
5. Final Payment: Details the breakdown and timing of all final payments including salary, leave entitlements, and other benefits
6. Return of Company Property: Lists company property to be returned and timeline for return
7. Confidentiality Obligations: Confirms ongoing confidentiality obligations post-employment
8. Non-Disparagement: Mutual obligations regarding non-disparagement
9. Release and Waiver: Mutual release of claims between parties
10. Continuing Obligations: Identifies which employment contract obligations survive termination
11. Tax Treatment: Clarifies tax treatment of termination payments
12. Governing Law: Specifies applicable law and jurisdiction
13. Execution: Signature blocks and execution details
1. Redundancy Payment: Include when termination is due to redundancy, detailing redundancy payment calculations
2. Post-Employment Restrictions: Include when enforcing non-compete or non-solicitation provisions
3. Reference and Announcements: Include when parties agree on specific terms for references or public announcements
4. Outplacement Services: Include when employer provides career transition support
5. Share Options/Long-Term Incentives: Include when addressing treatment of equity-based compensation
6. Legal Advice: Include when confirming employee has received independent legal advice
7. Garden Leave: Include when employee will be on garden leave before final termination
8. Intellectual Property: Include when specific IP assignments or obligations need addressing
9. Assistance with Handover: Include when specific handover obligations are required
1. Schedule 1 - Payment Calculation: Detailed breakdown of all termination payments and entitlements
2. Schedule 2 - Company Property Register: Comprehensive list of company property to be returned
3. Schedule 3 - Continuing Obligations: Detailed list of surviving terms from employment contract
4. Schedule 4 - Certificate of Independent Legal Advice: Form for legal advisor to certify advice given
5. Appendix A - Deed of Release: Formal release of claims document
6. Appendix B - Handover Plan: Detailed plan for transition of duties and responsibilities
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