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General Release For Employment Termination for the United Kingdom

General Release For Employment Termination Template for England and Wales

A General Release for Employment Termination is a legally binding document under English and Welsh law that formally ends an employment relationship between an employer and employee. It typically includes terms of separation, financial settlements, confidentiality obligations, and mutual releases of claims. The document must comply with UK employment legislation, including the Employment Rights Act 1996 and the Equality Act 2010, and requires independent legal advice to be valid. It provides legal protection for both parties by clearly defining the terms of separation and preventing future employment-related claims.

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General Release For Employment Termination

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What is a General Release For Employment Termination?

The General Release For Employment Termination is a crucial document used when ending employment relationships in England and Wales. It's typically implemented when parties wish to achieve a clean break and prevent future disputes. The document combines elements of statutory requirements, contractual obligations, and negotiated terms to create a comprehensive settlement. It must comply with UK employment law and includes specific provisions about termination payments, tax treatment, confidentiality, and waiver of claims. This agreement is particularly important in situations involving senior employees, redundancies, or where there might be potential disputes, as it provides certainty and protection for both parties.

What sections should be included in a General Release For Employment Termination?

1. Parties: Identification of employer and employee

2. Background: Context of employment and reason for termination

3. Definitions: Key terms used in the agreement

4. Termination Date: Specified date of employment termination

5. Payment Terms: Details of final salary, benefits, and any settlement payment

6. Tax Treatment: Tax implications of payments

7. Claims Released: Specific claims being waived by the employee

8. Confidentiality: Obligations regarding confidential information

9. Governing Law: Jurisdiction and applicable law

What sections are optional to include in a General Release For Employment Termination?

1. Reference Provision: Terms of employment reference to be provided by the employer

2. Garden Leave: Terms and conditions of any garden leave period prior to termination

3. Post-termination Restrictions: Non-compete and other restrictive covenants that survive termination

4. Company Property: Provisions regarding the return of company assets and property

5. Legal Fees: Terms regarding employer's contribution to employee's legal fees

What schedules should be included in a General Release For Employment Termination?

1. Schedule of Claims: Detailed list of statutory and contractual claims being waived

2. Payment Schedule: Breakdown of all payments and benefits to be made

3. Certificate of Independent Legal Advice: Confirmation from legal advisor that appropriate advice has been given

4. Post-termination Restrictions: Full terms of any continuing restrictions after employment ends

5. Company Property List: Detailed inventory of company items to be returned

Authors

Alex Denne

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

Jurisdiction

England and Wales

Document Type

Release Agreement

Cost

Free to use
Relevant legal definitions

















Clauses






























Industries

Employment Rights Act 1996: Primary legislation covering basic employment rights, unfair dismissal provisions, statutory notice periods, and redundancy payments. Section 203 specifically governs settlement agreements requirements including independent legal advice.

Equality Act 2010: Legislation ensuring protection against discrimination based on protected characteristics, crucial for ensuring the release agreement doesn't contain discriminatory elements.

Employment Relations Act 1999: Covers employee rights regarding representation in disciplinary/grievance meetings and collective bargaining provisions.

Companies Act 2006: Relevant for director's duties and corporate authority requirements in employment termination situations.

Data Protection Act 2018 and UK GDPR: Governs the handling of personal data, data privacy rights, and retention requirements for employment records during and after termination.

Working Time Regulations 1998: Legislation governing holiday pay calculations and working time restrictions that need to be considered in final settlement calculations.

Contracts (Rights of Third Parties) Act 1999: Addresses third-party rights considerations in contractual agreements including employment termination documents.

Limitation Act 1980: Sets out time limits for bringing claims and influences warranty periods in release agreements.

Income Tax (Earnings and Pensions) Act 2003: Tax legislation governing the treatment of termination payments and National Insurance considerations in settlement agreements.

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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