A Mutual Consent Termination agreement is used when both employer and employee agree to end their employment relationship amicably under Irish law. This document type is particularly valuable when parties wish to document a clean break and ensure all aspects of the termination are clearly agreed upon. It typically becomes relevant in scenarios such as agreed departures, career changes, or business restructuring where both parties have reached a mutual understanding. The agreement comprehensively addresses termination terms, financial settlements, ongoing obligations, and releases, while ensuring compliance with Irish employment legislation. Key elements include final payment calculations, treatment of benefits, confidentiality provisions, and mutual waivers of claims. The document provides legal certainty and protection for both parties while maintaining professional relationships.
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1. Parties: Identification of the employer and employee with full legal names and addresses
2. Background: Brief context of the employment relationship and mutual decision to terminate
3. Definitions: Key terms used throughout the agreement
4. Termination Date: Specific date when employment relationship will end
5. Final Payment: Details of salary, benefits, and other payments due up to termination date
6. Company Property: Requirements for return of company property and documents
7. Confidentiality: Ongoing obligations regarding confidential information
8. Full and Final Settlement: Confirmation that the agreement represents full and final settlement of all claims
9. Tax Indemnity: Employee's responsibility for personal tax liabilities
10. Governing Law: Confirmation of Irish law as governing law
11. Entire Agreement: Confirmation that this document represents the entire agreement between parties
1. Garden Leave: Used when employee will remain on payroll but not attend work until termination date
2. Reference: Terms regarding future employment references, if agreed
3. Post-termination Restrictions: If existing restrictive covenants are to be maintained or modified
4. Outplacement Support: If employer is providing career transition services
5. Legal Costs: If employer is contributing to employee's legal costs in reviewing agreement
6. Announcement: If parties agree to specific internal/external communications about the departure
7. Share Options/Awards: Treatment of any existing share schemes or long-term incentives
1. Schedule 1 - Payment Calculation: Detailed breakdown of final payment including salary, benefits, holiday pay, and any ex-gratia payments
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Continuing Obligations: Extract of relevant clauses from employment contract that survive termination
4. Appendix A - Certificate of Independent Legal Advice: Confirmation from employee's legal advisor that terms were explained
5. Appendix B - Form of Settlement Agreement: Standard waiver of claims under Irish employment legislation
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Employee Relations
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