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Independent Contractor Termination Agreement And Release for Australia

Independent Contractor Termination Agreement And Release Template for Australia

An Australian-compliant legal document designed to formally terminate an independent contractor relationship while providing mutual releases for both parties. This agreement encompasses the termination terms, final payment arrangements, ongoing obligations, and comprehensive releases under Australian federal and state laws. It ensures compliance with the Independent Contractors Act 2006 (Cth) and related legislation, while providing clear terms for the conclusion of the contractor relationship, including provisions for confidentiality, return of property, and any post-termination obligations.

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What is a Independent Contractor Termination Agreement And Release?

The Independent Contractor Termination Agreement And Release is essential for Australian businesses seeking to formally and legally conclude their relationships with independent contractors. This document is particularly relevant in situations where parties wish to achieve a clean break while protecting their respective interests. It addresses requirements under Australian law, including the Independent Contractors Act 2006 (Cth), Fair Work Act 2009 (Cth), and relevant state legislation. The agreement typically includes provisions for final payments, mutual releases, ongoing obligations, and the return of company property. It's designed to prevent future disputes by clearly documenting the terms of separation and any continuing obligations, while ensuring compliance with Australian legal requirements for contractor relationships.

What sections should be included in a Independent Contractor Termination Agreement And Release?

1. Parties: Identifies and defines the parties to the agreement, including the company and the independent contractor

2. Background: Recitals explaining the existing contractor relationship, reference to the original agreement, and the mutual decision to terminate

3. Definitions: Defines key terms used throughout the agreement

4. Termination Date: Specifies the effective date of termination and final day of engagement

5. Final Payment and Settlement: Details of any final payments, including outstanding invoices and agreed settlement amounts

6. Mutual Release: Comprehensive mutual release of claims between parties

7. Return of Property: Requirements for returning company property, documents, and materials

8. Continuing Obligations: Identifies obligations that survive termination (e.g., confidentiality, intellectual property)

9. Tax Matters: Addresses tax implications and responsibilities

10. Confidentiality: Reinforces ongoing confidentiality obligations post-termination

11. General Provisions: Standard boilerplate clauses including governing law, entire agreement, and severability

What sections are optional to include in a Independent Contractor Termination Agreement And Release?

1. Transition Services: Used when the contractor needs to provide handover or transition assistance

2. Non-Disparagement: Include when parties wish to prevent negative statements about each other

3. Reference and Announcements: Include when parties agree on how to communicate the termination to third parties

4. Post-Termination Restrictions: Used when reinforcing or modifying existing non-compete or non-solicitation provisions

5. Dispute Resolution: Include when parties want specific dispute resolution procedures

6. Insurance and Indemnification: Include when there are specific ongoing insurance or indemnity requirements

7. Amendment of Previous Agreements: Used when modifying rather than completely terminating certain aspects of the original agreement

What schedules should be included in a Independent Contractor Termination Agreement And Release?

1. Schedule 1 - Original Contractor Agreement: Copy or reference to the original independent contractor agreement being terminated

2. Schedule 2 - Final Payment Calculation: Detailed breakdown of final payments, including any outstanding fees and settlement amounts

3. Schedule 3 - Company Property Register: List of company property to be returned by the contractor

4. Schedule 4 - Surviving Obligations: Detailed list of obligations that continue after termination

5. Appendix A - Release Deed: Formal deed of release detailing the specific claims being released by both parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

Ƶ

Sector

Cost

Free to use
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Relevant Industries

Technology

Construction

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Creative Industries

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Relevant Teams

Legal

Human Resources

Procurement

Operations

Finance

Compliance

Risk Management

Contract Administration

Project Management Office

Executive Leadership

Relevant Roles

Chief Executive Officer

Human Resources Director

Legal Counsel

Operations Manager

Project Manager

Procurement Manager

Contract Administrator

Business Unit Director

Finance Manager

Department Head

Managing Director

Chief Operating Officer

HR Business Partner

Compliance Officer

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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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