Employee Release Of Claims

Employee Release Of Claims Template for England and Wales

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Key Requirements PROMPT example:

"I need an Employee Release of Claims for a senior software developer who is leaving by mutual agreement on March 15, 2025, with a settlement payment of £50,000 and an agreed reference, including post-termination restrictions for 6 months."

Document background

An Employee Release of Claims is utilized when ending an employment relationship in England and Wales, typically as part of a settlement agreement. It provides legal certainty for employers by documenting the employee's agreement not to pursue specified claims in exchange for agreed compensation. The document must comply with strict statutory requirements, including the need for independent legal advice, specific wording for valid waivers, and proper consideration. It's commonly used in redundancy situations, mutual separations, or resolution of workplace disputes, protecting both parties by clearly defining the terms of separation and the scope of claims being released.

Suggested Sections

1. Parties: Identification of the employer and employee

2. Background: Context of employment and circumstances leading to release

3. Definitions: Key terms used throughout the agreement

4. Release of Claims: Comprehensive list of claims being waived, including statutory and contractual claims

5. Payment Terms: Details of any settlement payment, including amount, timing, and method of payment

6. Confidentiality: Obligations regarding confidentiality of agreement terms and company information

7. Acknowledgments: Employee confirmation of understanding, voluntary nature, and receipt of independent legal advice

Optional Sections

1. Reference Provision: Terms of employment reference, used when agreed as part of settlement

2. Post-termination Restrictions: Non-compete and other restrictions, included if new or modified restrictions agreed

3. Company Property: Requirements for return of company property, included if employee has company assets

4. Tax Indemnity: Employee's tax obligations and indemnities, included for payments above £30,000

5. Ongoing Obligations: Surviving terms from employment contract, used when certain terms need to continue

Suggested Schedules

1. Schedule of Claims: Detailed list of specific claims being released under various employment legislation

2. Adviser's Certificate: Independent legal adviser's confirmation of advice given, as required by law

3. Reference Template: Agreed form of reference if applicable

4. Payment Schedule: Breakdown of payment amounts and timing if payment is to be made in installments

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

alex.den.21@genieai.co

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Authors

Alex Denne

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