The Work Separation Agreement is a crucial document used in Irish employment contexts when formally ending an employment relationship, whether through mutual agreement, redundancy, or other circumstances. It serves to protect both employer and employee interests by clearly documenting the terms of separation, including financial settlements, confidentiality requirements, and post-employment obligations. The agreement must comply with Irish employment law, including the Unfair Dismissals Acts, Redundancy Payments Acts, and relevant tax legislation. It typically includes provisions for payment calculations, treatment of benefits, return of company property, and ongoing obligations. This document is particularly important in situations where the employment termination involves senior employees, complex compensation arrangements, or potential legal risks that need to be carefully managed.
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1. Parties: Identifies and defines the employer and employee entering into the agreement
2. Background: Sets out the context of the employment relationship and the circumstances leading to separation
3. Definitions: Defines key terms used throughout the agreement
4. Termination Date: Specifies the official end date of employment and final working day
5. Payment Provisions: Details all payments to be made, including final salary, notice pay, and any ex-gratia payments
6. Tax Treatment: Addresses the tax implications of all payments and specifies which portions are subject to tax
7. Company Property: Requirements for returning company property and documents
8. Confidentiality: Ongoing obligations regarding confidential information
9. Full and Final Settlement: Confirms that the agreement represents a full and final settlement of all claims
10. Employee Warranties: Employee confirmations regarding return of property, confidential information, and other obligations
11. Reference: Terms regarding the provision of employment references
12. Governing Law: Specifies Irish law as governing law and jurisdiction
13. Execution: Signature blocks and execution provisions
1. Garden Leave: Include when the employee is to remain employed but not attend work during notice period
2. Post-termination Restrictions: Include when enforcing non-compete or non-solicitation provisions
3. Outplacement Support: Include when the employer is providing career transition services
4. Legal Costs: Include when the employer is contributing to the employee's legal costs for reviewing the agreement
5. Share Options/Awards: Include when addressing the treatment of existing share options or awards
6. Continuing Obligations: Include when specific ongoing duties or obligations exist beyond standard confidentiality
7. Announcement: Include when parties agree on specific internal/external communications about the departure
8. Independent Legal Advice: Include when specifically requiring the employee to obtain independent legal advice
1. Schedule 1 - Payment Calculations: Detailed breakdown of all payment components including salary, benefits, and statutory entitlements
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Post-termination Restrictions: Detailed terms of any continuing restrictions on employee activities
4. Appendix A - Form of Reference: Agreed form of employment reference
5. Appendix B - Resignation Letter: Template or actual resignation letter if required
6. Appendix C - Certificate of Independent Legal Advice: Form for legal advisor to confirm independent advice given
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