An End of Service Agreement is commonly used in England and Wales when employment is terminated by mutual agreement or as part of a negotiated exit. The document protects both employer and employee interests by clearly defining the terms of separation, including financial settlements, continuing obligations, and waiver of claims. It is particularly important for senior positions or situations involving sensitive information or potential disputes. The agreement must comply with UK employment law requirements and typically requires independent legal advice for the employee to be valid.
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1. Parties: Identification of the employer and employee entering into the agreement
2. Background: Brief context of employment relationship and reason for termination
3. Definitions: Key terms used throughout the agreement
4. Termination Date: Specific date employment ends and final working day if different
5. Payment Provisions: Details of final salary, benefits, and any termination payments
6. Tax Treatment: Tax implications of payments and who bears responsibility
7. Waiver of Claims: Employee's waiver of employment-related claims
8. Continuing Obligations: Ongoing duties including confidentiality and intellectual property
1. Garden Leave: Terms of garden leave if applicable during notice period
2. Post-termination Restrictions: Non-compete and non-solicitation provisions for senior employees or those with access to sensitive information
3. Reference: Terms of employment reference to be provided when agreed as part of settlement
4. Company Property: Return of company assets and equipment when employee has company property in possession
5. Share Options: Treatment of existing share options or awards when employee participates in share schemes
1. Schedule of Claims: Comprehensive list of potential claims being waived
2. Adviser's Certificate: Independent legal adviser's confirmation of advice given
3. Payment Schedule: Detailed breakdown of all payments to be made
4. Reference Template: Agreed form of reference if applicable
5. Post-termination Restrictions: Detailed restrictions from employment contract being preserved
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