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Mutual Consent Termination for Ireland

Mutual Consent Termination Template for Ireland

A Mutual Consent Termination agreement under Irish law is a formal document that records the agreed termination of employment between an employer and employee. This agreement outlines the terms and conditions of the employment termination, including the termination date, final payments, benefits, confidentiality obligations, and mutual releases. It ensures compliance with Irish employment legislation, including the Unfair Dismissals Acts and Terms of Employment (Information) Act, while providing legal certainty and protection for both parties. The document typically includes provisions for final settlements, treatment of company property, and any post-termination obligations.

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Mutual Consent Termination

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What is a Mutual Consent Termination?

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.

What sections should be included in a Mutual Consent Termination?

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

What sections are optional to include in a Mutual Consent Termination?

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

What schedules should be included in a Mutual Consent Termination?

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

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

Ireland

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions




















Clauses

























Relevant Industries

Financial Services

Technology

Manufacturing

Retail

Professional Services

Healthcare

Education

Construction

Telecommunications

Media

Pharmaceuticals

Transportation

Energy

Real Estate

Relevant Teams

Human Resources

Legal

Compliance

People Operations

Employee Relations

Industrial Relations

Corporate Services

Management

Relevant Roles

HR Director

HR Manager

Legal Counsel

Employment Lawyer

HR Business Partner

Compliance Officer

People Operations Manager

Employee Relations Manager

HR Administrator

Chief Human Resources Officer

General Counsel

Department Manager

Line Manager

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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