Exit Agreement Template for Ireland

An Exit Agreement is a legally binding contract that formalizes the end of an employment relationship in Ireland. This document ensures both you and your employer have clear expectations about termination terms, payments, and ongoing obligations while complying with Irish employment law and EU regulations.

When do you need this document?

You need an Exit Agreement when ending employment through mutual consent, redundancy, or other circumstances requiring formal documentation. This document is essential for senior executives, employees with access to confidential information, or situations involving substantial settlement payments. It's particularly valuable when departures could lead to disputes about restrictive covenants, intellectual property rights, or statutory entitlements. Many employers require Exit Agreements to protect against future employment tribunal claims or breach of confidentiality issues.

Key legal considerations

Your Exit Agreement must clearly specify termination dates, payment calculations, and tax treatment of all settlements. Payment terms should include salary, notice pay, holiday entitlements, and any ex-gratia payments, with clear deductions for tax and PRSI contributions. The agreement should address post-employment restrictions like non-compete clauses, confidentiality obligations, and return of company property. Consider including provisions for reference letters, outplacement services, and healthcare continuation where applicable. Any claim waivers must be carefully drafted to ensure they don't breach your statutory rights under Irish employment law.

Legal requirements in Ireland

Irish Exit Agreements must comply with the Unfair Dismissals Acts 1977-2015, ensuring any dismissal follows fair procedures and legitimate grounds. Under the Redundancy Payments Acts 1967-2014, you're entitled to statutory redundancy payments calculated on service length and weekly pay. The Organisation of Working Time Act 1997 governs payment for unused annual leave, while GDPR and the Data Protection Act 2018 regulate how your personal data is handled post-termination. The Employment Equality Acts 1998-2015 ensure your exit doesn't involve discrimination on protected grounds. Tax treatment follows the Taxes Consolidation Act 1997, with specific rules for termination payments and benefits. If you're a whistleblower, the Protected Disclosures Act 2014 provides additional protections that cannot be waived in exit agreements.