The Employee Mutual Separation Agreement is a crucial document used in Nigerian business contexts when an employer and employee agree to part ways amicably. It's particularly relevant in situations where both parties wish to formalize the termination of employment through mutual consent rather than unilateral termination or resignation. The agreement must comply with Nigerian labour laws, including the Labour Act and relevant employment regulations. It typically includes comprehensive details about final settlements, benefits, confidentiality requirements, and mutual releases. This document is especially important for protecting both parties' interests and preventing future disputes by clearly documenting all separation terms. The agreement should be drafted in accordance with Nigerian legal requirements and best practices, with consideration for any industry-specific regulations or company policies.
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1. Parties: Identification of the employer and employee, including full legal names and addresses
2. Background: Brief history of employment relationship, current position, and mutual decision to separate
3. Definitions: Key terms used throughout the agreement
4. Effective Date of Separation: Clear statement of when employment relationship will terminate
5. Final Payment and Benefits: Details of salary, benefits, and other compensation up to separation date
6. Separation Payment: Amount, timing, and terms of any additional payment or settlement
7. Tax and Statutory Deductions: Treatment of tax and other statutory deductions on payments
8. Company Property: Requirements for return of company property and documents
9. Confidentiality Obligations: Ongoing confidentiality obligations post-separation
10. Full and Final Settlement: Mutual release of claims and waiver of rights
11. References: Agreement on handling of employment references
12. Governing Law: Specification of Nigerian law as governing law
13. General Provisions: Standard boilerplate clauses including severability, entire agreement, etc.
1. Non-Competition: Restrictions on working for competitors - include for senior positions or when employee had access to sensitive information
2. Non-Solicitation: Restrictions on soliciting employees/customers - include for client-facing or management roles
3. Intellectual Property Rights: Specific provisions for IP created during employment - include for technical or creative roles
4. Garden Leave: Terms of any garden leave period - include if employee will be paid but not working during notice period
5. Share Options/Equity: Treatment of any share options or equity - include if employee has share-based compensation
6. Continuing Obligations: Any ongoing duties post-separation - include for senior roles or specific projects
7. Legal Representation: Acknowledgment of right to seek legal counsel - include for complex agreements or senior positions
8. Outplacement Support: Details of any career transition services - include if part of separation package
1. Schedule 1 - Calculation of Final Payment: Detailed breakdown of final payment including salary, leave, and other entitlements
2. Schedule 2 - Company Property Checklist: List of company property to be returned
3. Schedule 3 - Benefits Summary: Summary of benefits and their treatment post-separation
4. Appendix A - Release Form: Detailed release of claims form to be signed
5. Appendix B - Reference Template: Agreed format and content of employment reference
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