The Work Separation Agreement is a crucial document used in Malta when formally ending an employment relationship, whether through mutual agreement, redundancy, or other circumstances. It provides a legally robust framework under Maltese employment law for documenting the terms of separation, including financial settlements, continuing obligations, and waivers of claims. This agreement is particularly important given Malta's comprehensive employment protection framework and the need to ensure compliance with the Employment and Industrial Relations Act. It helps prevent future disputes by clearly documenting all aspects of the separation, from final payments to post-employment restrictions, while taking into account specific Maltese legal requirements regarding notice periods, statutory entitlements, and tax implications.
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1. Parties: Identification of the employer and employee, including full legal names and addresses
2. Background: Brief history of employment relationship, reason for separation, and purpose of the agreement
3. Definitions: Definitions of key terms used throughout the agreement
4. Termination Date: Specification of the official employment termination date and last working day if different
5. Final Payment: Details of final salary, notice pay, and statutory entitlements
6. Severance Payment: Terms and calculation of any severance or ex-gratia payments
7. Tax and Social Security: Treatment of payments for tax and social security purposes
8. Full and Final Settlement: Confirmation that payments represent full and final settlement of all claims
9. Waiver of Claims: Employee's waiver of employment-related claims against the employer
10. Confidentiality: Ongoing obligations regarding confidential information
11. Reference: Terms regarding employment references and responding to inquiries
12. Governing Law: Specification of Maltese law as governing law and jurisdiction
13. Execution: Signature blocks and execution requirements
1. Garden Leave: Terms of garden leave if applicable during notice period
2. Company Property: List of items to be returned and process for return
3. Ongoing Projects: Handover requirements for ongoing work or projects
4. Post-termination Restrictions: Non-compete and non-solicitation clauses if applicable
5. Share Options/Benefits: Treatment of existing share options or benefits
6. Legal Advice: Confirmation of independent legal advice if provided
7. Announcement: Terms regarding internal and external communication of departure
8. Outplacement Support: Details of any career transition services provided
9. Director Resignations: Required resignations from director or officer positions if applicable
1. Schedule 1 - Payment Calculation: Detailed breakdown of all payments including salary, notice pay, and severance
2. Schedule 2 - Company Property: Itemized list of company property to be returned
3. Schedule 3 - Benefits Summary: Summary of treatment of various benefits and entitlements
4. Schedule 4 - Post-termination Restrictions: Full details of any post-employment restrictive covenants
5. Appendix A - Certificate of Compliance: Employee declaration of compliance with agreement terms
6. Appendix B - Reference Template: Agreed form of employment reference
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