Resignation Agreement And General Release for India

Resignation Agreement And General Release Template for India

A comprehensive legal document governed by Indian law that formalizes an employee's voluntary resignation from their position and includes a mutual release of claims between the employer and employee. The agreement details the terms of separation, including final settlement of dues, benefits, confidentiality obligations, and other post-employment responsibilities. It ensures compliance with Indian labor laws, including the Industrial Disputes Act 1947 and relevant state-specific regulations, while providing legal protection for both parties through carefully drafted release provisions and settlement terms.

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What is a Resignation Agreement And General Release?

The Resignation Agreement and General Release is a crucial document used in Indian employment contexts when an employee voluntarily terminates their employment relationship with their employer. It serves multiple purposes: documenting the formal resignation, establishing clear terms for the separation, detailing final settlements and benefits, and providing mutual releases to prevent future legal disputes. The agreement must comply with Indian contract law, labor regulations, and state-specific employment requirements. It typically includes provisions for final payments, benefit calculations, confidentiality obligations, and the return of company property. This document is particularly important for ensuring a smooth transition and protecting both parties' interests by clearly documenting all aspects of the separation and obtaining a mutual release of claims.

What sections should be included in a Resignation Agreement And General Release?

1. Parties: Identification of the employer and employee, including their legal names, addresses, and relevant registration/identification numbers

2. Background: Brief history of employment relationship, current circumstances leading to resignation, and purpose of the agreement

3. Definitions: Key terms used throughout the agreement including 'Effective Date', 'Settlement Amount', 'Claims', 'Confidential Information'

4. Resignation Terms: Formal confirmation of resignation, effective date, and handling of notice period

5. Final Settlement: Details of all payments including salary, benefits, bonuses, and other compensation due to the employee

6. Release and Waiver: Comprehensive release of claims by employee against employer and related entities

7. Company Property: Requirements for return of all company property, documents, and data

8. Confidentiality Obligations: Ongoing obligations regarding confidential information and trade secrets

9. References and Communications: Agreement on how future employment references will be handled and internal/external communications about the resignation

10. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes

11. General Provisions: Standard contract clauses including entire agreement, amendments, severability, and counterparts

What sections are optional to include in a Resignation Agreement And General Release?

1. Non-Competition and Non-Solicitation: Restrictions on future employment and client/employee solicitation, typically included for senior positions or when employee had access to sensitive information

2. Equity and Stock Options: Treatment of any outstanding equity compensation, included when employee has stock options or other equity-based compensation

3. Assistance with Transition: Terms for employee's cooperation in transitioning duties, included when handover is complex or critical

4. Benefits Continuation: Details about post-employment benefits continuation, if applicable

5. Mutual Non-Disparagement: Mutual agreements not to make negative statements, often included for senior positions

6. Legal Fees: Provisions regarding payment of legal fees for agreement review, included when employer agrees to cover employee's legal costs

7. Outplacement Services: Terms of any career transition support provided by employer, included as part of separation package

What schedules should be included in a Resignation Agreement And General Release?

1. Schedule A - Final Settlement Calculation: Detailed breakdown of all payments including salary, gratuity, leave encashment, and other benefits

2. Schedule B - Company Property Checklist: List of all company property to be returned including devices, documents, access cards, etc.

3. Schedule C - Ongoing Benefits Summary: Details of any benefits continuing post-employment including insurance coverage periods

4. Schedule D - Confidential Information Definition: Comprehensive list of what constitutes confidential information

5. Appendix 1 - Release Claims: Detailed list of claims being released by the employee

6. Appendix 2 - Handover Plan: Timeline and details for transitioning responsibilities and projects

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

India

Publisher

Genie AI

Document Type

Release Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Manufacturing

Financial Services

Healthcare

Retail

Telecommunications

Professional Services

Education

Construction

Real Estate

Pharmaceuticals

Media and Entertainment

Energy and Utilities

Hospitality

E-commerce

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Research and Development

Administration

Corporate Affairs

Compliance

Executive Leadership

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Senior Manager

Project Manager

Software Engineer

Sales Executive

HR Manager

Department Head

Regional Director

Account Manager

Technical Lead

Operations Manager

Research Analyst

Marketing Manager

Administrative Officer

General Manager

Vice President

Industries
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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