The Form Settlement Agreement and Release is a critical document used in Irish employment law context when an employer and employee wish to formally resolve employment-related disputes or agree to terms for the termination of employment. It serves as a legally binding contract that provides certainty and finality for both parties, typically including monetary compensation in exchange for the employee waiving their right to pursue various employment-related claims. The document must comply with Irish statutory requirements, including the necessity for the employee to receive independent legal advice. It addresses various aspects including financial settlement, confidentiality, non-disparagement, and the return of company property, while ensuring compliance with Irish employment legislation, tax laws, and data protection requirements. This type of agreement is particularly valuable in situations involving senior executives, redundancies, or where there are potential disputes that parties wish to resolve amicably.
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1. Parties: Identifies all parties to the agreement, including full legal names and addresses
2. Background: Recitals explaining the context of the dispute or circumstances leading to the settlement
3. Definitions: Defines key terms used throughout the agreement
4. Settlement Payment: Details the amount, timing, and method of settlement payment, including tax treatment
5. Release of Claims: Comprehensive release of all claims by the employee against the employer and related parties
6. Company Property: Obligations regarding return of company property and documentation
7. Confidentiality: Obligations to keep the agreement and its terms confidential
8. Non-Disparagement: Mutual obligations not to make derogatory statements about each other
9. Tax Indemnity: Employee's indemnity regarding tax treatment of settlement payment
10. Legal Advice: Confirmation that independent legal advice was received
11. Entire Agreement: Confirmation that this document represents the entire agreement between parties
12. Governing Law: Specifies Irish law as governing law and Irish courts' jurisdiction
13. Execution: Signature blocks and execution provisions
1. Garden Leave: Provisions relating to any garden leave period, used when employee is placed on paid leave during notice period
2. Post-termination Restrictions: Reaffirmation or modification of existing post-termination restrictive covenants, used when original employment contract contained restrictions
3. Reference: Terms regarding the provision of employment references, used when agreed as part of settlement
4. Announcement: Agreed internal/external communications about the departure, used in senior executive departures
5. Share Options/Benefits: Treatment of outstanding share options or benefits, used when employee has equity or benefit entitlements
6. Outplacement Support: Details of any career transition support, used when this forms part of the settlement package
7. Ongoing Cooperation: Obligations to assist with handover or future inquiries, used in complex roles or litigation contexts
8. Legal Costs: Provisions regarding payment of legal costs, used when employer is contributing to employee's legal fees
1. Schedule 1 - Claims: Detailed list of statutory and common law claims being settled
2. Schedule 2 - Payment Details: Breakdown of settlement payment components and tax treatment
3. Schedule 3 - Company Property: Itemized list of company property to be returned
4. Appendix 1 - Adviser's Certificate: Independent legal adviser's certification of advice given
5. Appendix 2 - Resignation Letter: Form of resignation letter to be signed by employee
6. Appendix 3 - Agreed Reference: Text of agreed employment reference, if applicable
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