Employee Separation Agreement for Ireland

Employee Separation Agreement Template for Ireland

A legally binding document governed by Irish employment law that formalizes the termination of employment between an employer and employee. The agreement outlines the terms and conditions of the separation, including termination date, final payments, benefits, statutory entitlements, and any additional compensation. It addresses confidentiality obligations, post-employment restrictions, and provides mutual releases of claims. The document ensures compliance with Irish employment legislation, including the Unfair Dismissals Acts, Redundancy Payments Acts, and relevant equality laws, while protecting both parties' interests during the separation process.

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What is a Employee Separation Agreement?

The Employee Separation Agreement is a crucial document used in Ireland when formally ending an employment relationship, whether through mutual agreement, redundancy, or other circumstances. It serves to document all aspects of the employment termination, including financial settlements, continuing obligations, and mutual releases. The agreement must comply with Irish employment law, including the Unfair Dismissals Acts 1977-2015, Redundancy Payments Acts 1967-2014, and equality legislation. It typically includes provisions for final payments, treatment of benefits, confidentiality obligations, and non-disparagement clauses. This document is particularly important for protecting both employer and employee interests by providing clarity and certainty regarding the separation terms while ensuring all statutory requirements are met.

What sections should be included in a Employee Separation Agreement?

1. Parties: Identifies the employer and employee, including their full legal names and addresses

2. Background: States the context of the agreement, including employment start date, position, and reason for separation

3. Definitions: Defines key terms used throughout the agreement

4. Termination Date: Specifies the official end date of employment and final working day if different

5. Final Payment: Details the employee's final salary, including any pro-rata payments for partial periods

6. Statutory Entitlements: Outlines payments for accrued but unused annual leave, public holidays, and other statutory entitlements

7. Company Property: Lists company property to be returned and deadline for return

8. Confidentiality Obligations: Reiterates ongoing confidentiality obligations post-employment

9. Non-Disparagement: Mutual commitments to refrain from making negative statements about each other

10. Tax Indemnity: Clarifies tax treatment of payments and related indemnities

11. Full and Final Settlement: Confirms that the agreement represents full and final settlement of all claims

12. Governing Law: Specifies that Irish law governs the agreement

13. Entire Agreement: Confirms this document represents the entire agreement between parties

What sections are optional to include in a Employee Separation Agreement?

1. Severance Payment: Details of any ex-gratia payment being made, used when offering payment beyond statutory requirements

2. Reference: Terms regarding the provision of employment references, included when agreed to provide a reference

3. Post-Termination Restrictions: Restatement or modification of existing restrictive covenants, used when relevant to employee's role

4. Legal Costs: Agreement to contribute to employee's legal costs, included when employer is contributing to legal fees

5. Outplacement Support: Details of any career transition services offered, included when providing such support

6. Share Options/Awards: Treatment of existing share options or awards, included for employees with equity compensation

7. Garden Leave: Terms of any garden leave period, used when employee will not be working during notice period

8. Insurance Benefits: Continuation or termination of insurance benefits, included when relevant benefits exist

9. Announcement: Agreed internal/external communications about departure, used for senior employees

10. Resignation from Directorships: Terms for resigning from corporate positions, used for director-level employees

What schedules should be included in a Employee Separation Agreement?

1. Schedule 1 - Payment Calculation: Detailed breakdown of all payments including statutory, contractual, and ex-gratia amounts

2. Schedule 2 - Company Property: Itemized list of company property to be returned

3. Schedule 3 - Claims Being Settled: Comprehensive list of statutory and contractual claims being waived

4. Schedule 4 - Continuing Obligations: Details of post-employment obligations including confidentiality and restrictive covenants

5. Appendix A - Adviser's Certificate: Certificate from employee's legal adviser confirming independent advice given

6. Appendix B - Letter of Resignation: Template resignation letter if resignation is the formal reason for departure

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

Jurisdiction

Ireland

Publisher

Genie AI

Cost

Free to use
Relevant Industries

Technology

Financial Services

Manufacturing

Retail

Healthcare

Professional Services

Education

Construction

Telecommunications

Pharmaceutical

Energy

Media and Entertainment

Hospitality

Transportation and Logistics

Real Estate

Relevant Teams

Human Resources

Legal

Finance

Payroll

Compliance

Executive Leadership

Information Technology

Operations

Administration

Risk Management

Relevant Roles

Chief Executive Officer

Managing Director

Department Head

Senior Manager

Project Manager

Team Leader

Software Developer

Sales Representative

Account Manager

Administrative Assistant

Human Resources Manager

Financial Analyst

Operations Manager

Marketing Executive

Research Scientist

Customer Service Representative

Technical Support Specialist

Business Development Manager

Product Manager

Legal Counsel

Industries
Unfair Dismissals Acts 1977-2015: Sets out the framework for fair dismissal procedures and employees' rights regarding termination of employment, including grounds for dismissal and remedies available to employees
Redundancy Payments Acts 1967-2014: Governs statutory redundancy payments and procedures, including calculation of payments and qualification criteria
Payment of Wages Act 1991: Regulates the payment of wages and final settlements, including timing and method of payment
Employment Equality Acts 1998-2015: Ensures the separation agreement doesn't discriminate based on any of the nine protected grounds under Irish equality law
General Data Protection Regulation (GDPR) and Data Protection Act 2018: Governs the handling of employee personal data during and after employment, including retention periods and privacy rights
Minimum Notice and Terms of Employment Acts 1973-2005: Specifies minimum notice periods for termination of employment based on length of service
Organisation of Working Time Act 1997: Regulates payment for unused annual leave and public holidays upon termination
Taxes Consolidation Act 1997: Governs taxation of termination payments, including tax treatment of ex-gratia payments and redundancy lump sums
Industrial Relations Acts 1946-2015: Provides framework for resolving any disputes that may arise during the separation process
Protected Disclosures Act 2014: Ensures protection of whistleblowers and prevents any gagging clauses that might prevent protected disclosures
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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