The Employee Severance Agreement is a crucial document used in Ireland when formally terminating an employment relationship, whether through redundancy, mutual agreement, or other circumstances. It serves as a legally binding contract that protects both employer and employee interests by clearly documenting the terms of separation, including financial arrangements, continuing obligations, and waivers of claims. This agreement must comply with Irish employment law, including the Redundancy Payments Acts, Unfair Dismissals Acts, and relevant tax legislation. It typically includes provisions for severance payments, statutory entitlements, benefit arrangements, confidentiality obligations, and post-employment restrictions. The document is particularly important in situations involving senior employees, redundancies, or where there is a need to ensure a clean break in the employment relationship while minimizing the risk of future disputes.
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1. Parties: Identification of the employer and employee, including full legal names and addresses
2. Background: Context of the employment relationship and reason for termination
3. Definitions: Definitions of key terms used throughout the agreement
4. Termination Date: Specific date of employment termination and final working day
5. Payment Terms: Details of severance package, including statutory redundancy, ex-gratia payments, and payment timing
6. Tax Treatment: Treatment of payments for tax purposes and employer's position on tax indemnity
7. Company Property: Requirements for return of company property and intellectual property rights
8. Confidentiality: Ongoing obligations regarding confidential information
9. Full and Final Settlement: Waiver of claims and full settlement provisions
10. Employee Warranties: Employee confirmations regarding return of property, confidential information, and other obligations
11. Reference: Agreement on the form and content of employment references
12. Governing Law: Confirmation that the agreement is governed by Irish law
1. Garden Leave: Used when the employee is placed on garden leave during notice period
2. Post-termination Restrictions: Include if enforcing existing or new non-compete or non-solicitation provisions
3. Outplacement Support: When outplacement services are being provided as part of the package
4. Share Options/Awards: Required if employee has share options or awards that need to be addressed
5. Legal Costs: Include when employer is contributing to employee's legal costs for reviewing the agreement
6. Continuing Directors' Duties: Necessary if employee was also a director of the company
7. Communications: Include if parties agree on specific internal/external communications about the departure
8. Medical Insurance: Used when addressing continuation or termination of medical benefits
1. Schedule 1 - Payment Calculations: Detailed breakdown of all payments including statutory redundancy, ex-gratia, and benefits calculations
2. Schedule 2 - Resignation Letter: Template resignation letter to be signed by employee
3. Schedule 3 - Certificate of Independent Legal Advice: Confirmation from employee's legal advisor that terms have been explained
4. Schedule 4 - Reference Letter: Agreed form of reference to be provided
5. Schedule 5 - Company Property List: Itemized list of company property to be returned
6. Appendix A - Existing Post-termination Restrictions: Copy of relevant restrictions from employment contract that survive termination
Relevant legal definitions
Agreement
Board
Business
Confidential Information
Company
Company Property
Claims
Effective Date
Employee
Employer
Employment Contract
Group
Intellectual Property Rights
Notice Period
Outstanding Remuneration
Parties
Payment Date
Personal Data
Post-termination Restrictions
Reference
Severance Payment
Statutory Redundancy Payment
Subsidiary
Tax
Termination Date
Termination Payment
Waiver
Board
Business
Confidential Information
Company
Company Property
Claims
Effective Date
Employee
Employer
Employment Contract
Group
Intellectual Property Rights
Notice Period
Outstanding Remuneration
Parties
Payment Date
Personal Data
Post-termination Restrictions
Reference
Severance Payment
Statutory Redundancy Payment
Subsidiary
Tax
Termination Date
Termination Payment
Waiver
Clauses
Interpretation
Duration of Employment
Termination
Severance Payment
Payment Terms
Statutory Entitlements
Tax Indemnity
Company Property Return
Confidentiality
Intellectual Property
Data Protection
Non-Disparagement
Post-termination Restrictions
Full and Final Settlement
Waiver of Claims
References
Legal Costs
Warranties
Garden Leave
Announcements
Entire Agreement
Severability
Third Party Rights
Variation
Assignment
Notices
Counterparts
Governing Law and Jurisdiction
Duration of Employment
Termination
Severance Payment
Payment Terms
Statutory Entitlements
Tax Indemnity
Company Property Return
Confidentiality
Intellectual Property
Data Protection
Non-Disparagement
Post-termination Restrictions
Full and Final Settlement
Waiver of Claims
References
Legal Costs
Warranties
Garden Leave
Announcements
Entire Agreement
Severability
Third Party Rights
Variation
Assignment
Notices
Counterparts
Governing Law and Jurisdiction
Relevant Industries
Financial Services
Technology
Manufacturing
Retail
Healthcare
Professional Services
Education
Construction
Telecommunications
Media
Pharmaceuticals
Energy
Transportation
Hospitality
Real Estate
Relevant Teams
Human Resources
Legal
Finance
Executive Leadership
Operations
Information Technology
Sales
Marketing
Research and Development
Customer Service
Administration
Product Development
Compliance
Risk Management
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Director
Senior Manager
Department Head
Team Leader
Professional Staff
Administrative Staff
Technical Specialist
Sales Representative
Operations Manager
Project Manager
Executive Assistant
Research Scientist
Software Developer
Account Manager
Human Resources Manager
Financial Analyst
Marketing Manager
Customer Service Representative
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