Document background
A Severance Contract is a crucial document used in Australian employment relations when terminating employment relationships, particularly in cases of redundancy, mutual separation, or negotiated exits. This agreement is designed to comply with Australian federal and state employment laws, including the Fair Work Act 2009 and relevant state legislation. It is typically used when an employer wishes to provide a formal framework for employment termination that includes additional benefits beyond statutory minimums, while securing certain protections such as confidentiality and release of claims. The document comprehensively addresses payment terms, timing, tax implications, ongoing obligations, and mutual releases, providing clarity and certainty for both parties while minimizing the risk of future disputes.
