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Mutual Severance Agreement

Mutual Severance Agreement Template for Ireland

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Key Requirements PROMPT example:

Mutual Severance Agreement

"I need a Mutual Severance Agreement for a senior software developer in our Dublin office who will be leaving amicably on March 15, 2025, with standard post-termination restrictions and an agreed reference."

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Document background
The Mutual Severance Agreement is a crucial document used in Irish employment law context when an employer and employee agree to terminate their employment relationship on mutually acceptable terms. It is typically used in situations where both parties wish to achieve a clean break and obtain certainty regarding their respective rights and obligations. The agreement covers essential elements such as termination payments, tax treatment, confidentiality obligations, and mutual releases of claims. It must comply with Irish employment legislation, including the Unfair Dismissals Acts, Redundancy Payments Acts, and relevant tax laws. This document is particularly important in protecting both parties' interests by clearly documenting the agreed terms of separation and preventing future disputes.
Suggested Sections

1. Parties: Identifies the employer and employee entering into the agreement

2. Background: Sets out the context of the employment relationship and the circumstances leading to the severance agreement

3. Definitions: Defines key terms used throughout the agreement

4. Termination Date: Specifies the official end date of employment and any garden leave arrangements

5. Severance Payment: Details the severance package, including amounts, payment timing, and tax treatment

6. Accrued Rights: Addresses payment of salary, unused holiday pay, and other entitlements up to the termination date

7. Company Property: Requirements for returning company property and documents

8. Confidentiality: Ongoing obligations regarding confidential information

9. Employee Warranties: Employee confirmations regarding company property, confidential information, and other matters

10. Waiver and Release: Mutual releases of claims between the parties

11. Tax Indemnity: Employee's indemnity for tax liabilities related to the severance payment

12. Legal Advice: Confirmation that the employee has received independent legal advice

13. General Provisions: Standard boilerplate clauses including governing law, entire agreement, and third party rights

14. Execution: Signature blocks and execution requirements

Optional Sections

1. Post-Termination Restrictions: Additional or modified restrictive covenants, used when existing restrictions need modification or new ones are required

2. Ongoing Cooperation: Requirements for the employee to assist with handover or future inquiries, used when there are ongoing projects or potential litigation

3. Reference: Terms regarding future employment references, included when agreed as part of the settlement

4. Share Options/Awards: Treatment of existing share options or awards, included if the employee participates in share schemes

5. Outplacement Support: Details of any career transition services provided, included if part of the severance package

6. Insurance Continuation: Provisions regarding continued insurance coverage, if applicable

7. Public Announcements: Agreement on internal/external communications about the departure, used for senior executives or sensitive departures

8. Garden Leave: Detailed provisions for garden leave period, if applicable

Suggested Schedules

1. Schedule 1 - Calculation of Severance Payment: Detailed breakdown of severance payment components including statutory and ex-gratia amounts

2. Schedule 2 - Certificate of Independent Legal Advice: Form to be completed by the employee's legal advisor

3. Schedule 3 - Settlement Agreement Adviser's Certificate: Confirmation from the legal adviser that appropriate advice has been given

4. Schedule 4 - Company Property List: Itemized list of company property to be returned

5. Appendix A - Resignation Letter: Template resignation letter to be signed by the employee

6. Appendix B - Agreed Reference: Text of agreed employment reference, if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºÚÁÏÊÓƵ | 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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