A Severance Agreement And General Release is a crucial document in Australian employment law, typically used when an employment relationship is terminated through redundancy, mutual agreement, or as part of dispute resolution. The agreement serves multiple purposes: it documents the financial terms of the separation, ensures compliance with statutory obligations, provides legal protection through mutual releases, and establishes clear post-employment obligations. This document is essential for risk management and provides certainty for both parties, particularly in complex terminations or when significant severance payments are involved. The agreement must comply with Australian employment legislation, including the Fair Work Act 2009, various discrimination laws, and relevant state-based employment regulations.
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1. Parties: Identification of the employer and employee parties to the agreement
2. Background: Context of the employment relationship and reason for termination
3. Definitions: Key terms used throughout the agreement
4. Termination Date: Specific date and circumstances of employment termination
5. Severance Payment: Details of the severance amount, payment method, and timing
6. Statutory Entitlements: Confirmation of payment of all statutory entitlements including annual leave, long service leave, and notice period
7. Tax Treatment: Specification of how payments will be treated for tax purposes
8. General Release: Comprehensive release of claims by the employee against the employer
9. Confidentiality: Obligations regarding confidentiality of the agreement and company information
10. Non-Disparagement: Mutual obligations not to make negative statements about each other
11. Return of Company Property: Requirements and timeline for returning all company property
12. References: Agreement on the provision of employment references
13. Continuing Obligations: Survival of relevant employment agreement obligations
14. Governing Law: Specification of governing law and jurisdiction
15. Execution: Signature blocks and execution requirements
1. Non-Competition: Restrictions on working for competitors, used for senior executives or when existing restraints need modification
2. Non-Solicitation: Restrictions on soliciting employees or customers, used when there's significant client/employee relationship risk
3. Intellectual Property: Additional IP provisions, used when the employee was involved in creating IP
4. Equity/Share Rights: Treatment of existing share rights or options, used when employee has equity participation
5. Outplacement Services: Provision of career transition services, used in larger severance packages
6. Legal Advice: Acknowledgment of independent legal advice, used in complex agreements or with senior executives
7. Media Communications: Agreed approach to external communications, used for senior executives or public-facing roles
8. Future Cooperation: Obligations to assist with transitions or future legal matters, used when ongoing cooperation might be needed
9. Benefits Continuation: Extension of certain employment benefits, used in more generous severance packages
10. Mutual Release: Where employer also releases claims against employee, used in complex separations
1. Schedule 1 - Payment Details: Detailed breakdown of all payment components including statutory entitlements, ex-gratia payments, and timing
2. Schedule 2 - Company Property: Itemized list of company property to be returned
3. Schedule 3 - Continuing Obligations: Specific obligations from employment agreement that survive termination
4. Schedule 4 - Agreed Reference: Form of agreed employment reference
5. Appendix A - Deed of Release: Formal deed of release if separate from main agreement
6. Appendix B - Certificate of Independent Legal Advice: Form for legal advisor to certify advice given to employee
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