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Early Termination Of Employment Contract

Early Termination Of Employment Contract Template for New Zealand

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Key Requirements PROMPT example:

Early Termination Of Employment Contract

"I need an Early Termination of Employment Contract for a senior software developer in New Zealand who has agreed to leave by mutual consent, with garden leave from February 1, 2025, and including post-employment restrictions on working with competitors for 6 months."

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Document background
The Early Termination of Employment Contract is utilized when both employer and employee agree to end their employment relationship before the originally intended term or notice period. This document is essential in New Zealand's employment landscape, where it must comply with the Employment Relations Act 2000 and related legislation. It is typically used in situations of mutual separation, restructuring, or when parties agree to expedite the end of employment. The agreement provides legal protection for both parties by clearly documenting the terms of separation, including final payments, handover requirements, and ongoing obligations. It should be customized to address specific circumstances while ensuring compliance with New Zealand employment law requirements regarding notice periods, final pay calculations, and procedural fairness.
Suggested Sections

1. Parties: Identification of the employer and employee, including full legal names and addresses

2. Background: Brief context about the existing employment relationship and mutual agreement to terminate early

3. Definitions: Key terms used throughout the agreement including 'Termination Date', 'Final Pay', 'Confidential Information'

4. Termination Date: Specific date when employment will end and confirmation of notice period arrangements

5. Final Pay and Entitlements: Details of final salary, holiday pay, and other entitlements to be paid

6. Company Property: Requirements for return of company property, equipment, 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 Treatment: Clarification of tax treatment of payments

10. Execution: Signing provisions including acknowledgment of legal advice

Optional Sections

1. Garden Leave: Include when employee is to remain employed but not attend work during notice period

2. Reference: Include when parties agree on provision of employment reference

3. Post-Employment Restrictions: Include when existing restraints of trade or non-compete clauses continue to apply

4. Mutual Non-Disparagement: Include when parties agree not to make negative statements about each other

5. Ongoing Cooperation: Include when employee's assistance may be needed for handover or future matters

6. Legal Costs: Include when employer agrees to contribute to employee's legal costs

Suggested Schedules

1. Schedule 1 - Calculation of Final Payment: Detailed breakdown of all final payments including salary, holiday pay, and any special payments

2. Schedule 2 - Company Property Register: List of all company property to be returned

3. Appendix A - Deed of Release: Formal release of claims between parties

4. Appendix B - Reference Letter: Agreed form of reference letter if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 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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Relevant Industries

Technology

Financial Services

Manufacturing

Retail

Healthcare

Education

Professional Services

Construction

Hospitality

Mining

Agriculture

Transportation

Telecommunications

Media and Entertainment

Energy

Relevant Teams

Human Resources

Legal

People Operations

Employee Relations

Talent Management

Executive Leadership

Payroll

Compliance

Risk Management

Relevant Roles

HR Manager

HR Director

Legal Counsel

Employment Relations Manager

People Operations Manager

Chief Human Resources Officer

HR Business Partner

Talent Management Director

Employee Relations Specialist

Compensation and Benefits Manager

HR Operations Manager

Chief Executive Officer

Chief Operating Officer

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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