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Termination Agreement

Termination Agreement Template for Australia

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Key Requirements PROMPT example:

Termination Agreement

"I need a Termination Agreement for a mutual separation with an IT developer in our Sydney office, effective March 15, 2025, including standard confidentiality provisions and a 3-month non-compete clause."

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Document background
A Termination Agreement is essential when formally documenting the end of an employment relationship in Australia. This document is typically used when employment is terminated by mutual agreement, redundancy, or as part of a negotiated exit. The agreement must comply with Australian employment law, including the Fair Work Act 2009, National Employment Standards, and relevant state legislation. It covers crucial aspects such as termination payments, notice periods, final entitlements, confidentiality obligations, and mutual releases. The document protects both employer and employee interests by clearly defining rights, obligations, and benefits upon termination, while ensuring all legal requirements are met. This agreement is particularly important for managing legal risk and providing certainty to all parties involved in the employment separation.
Suggested Sections

1. Parties: Identifies and defines the employer and employee parties to the agreement

2. Background: Outlines the context of the employment relationship and reason for termination

3. Definitions: Defines key terms used throughout the agreement

4. Termination Date: Specifies the effective date of employment termination

5. Final Payment: Details the breakdown and timing of all final payments including salary, leave entitlements, and other benefits

6. Return of Company Property: Lists company property to be returned and timeline for return

7. Confidentiality Obligations: Confirms ongoing confidentiality obligations post-employment

8. Non-Disparagement: Mutual obligations regarding non-disparagement

9. Release and Waiver: Mutual release of claims between parties

10. Continuing Obligations: Identifies which employment contract obligations survive termination

11. Tax Treatment: Clarifies tax treatment of termination payments

12. Governing Law: Specifies applicable law and jurisdiction

13. Execution: Signature blocks and execution details

Optional Sections

1. Redundancy Payment: Include when termination is due to redundancy, detailing redundancy payment calculations

2. Post-Employment Restrictions: Include when enforcing non-compete or non-solicitation provisions

3. Reference and Announcements: Include when parties agree on specific terms for references or public announcements

4. Outplacement Services: Include when employer provides career transition support

5. Share Options/Long-Term Incentives: Include when addressing treatment of equity-based compensation

6. Legal Advice: Include when confirming employee has received independent legal advice

7. Garden Leave: Include when employee will be on garden leave before final termination

8. Intellectual Property: Include when specific IP assignments or obligations need addressing

9. Assistance with Handover: Include when specific handover obligations are required

Suggested Schedules

1. Schedule 1 - Payment Calculation: Detailed breakdown of all termination payments and entitlements

2. Schedule 2 - Company Property Register: Comprehensive list of company property to be returned

3. Schedule 3 - Continuing Obligations: Detailed list of surviving terms from employment contract

4. Schedule 4 - Certificate of Independent Legal Advice: Form for legal advisor to certify advice given

5. Appendix A - Deed of Release: Formal release of claims document

6. Appendix B - Handover Plan: Detailed plan for transition of duties and responsibilities

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Accrued Entitlements
Business
Business Day
Confidential Information
Commencement Date
Company
Company Property
Completion Date
Continuing Obligations
Deed of Release
Effective Date
Employee
Employer
Employment Contract
Final Payment
Garden Leave
Intellectual Property
Notice Period
Parties
Release
Restraint Period
Restraint Area
Separation Date
Termination Date
Termination Payment
Outstanding Wages
Prior Agreements
Professional Services
Related Bodies Corporate
Statutory Entitlements
Superannuation
Trade Secrets
Unvested Benefits
Relevant Industries

Financial Services

Technology

Healthcare

Manufacturing

Retail

Professional Services

Education

Mining

Construction

Telecommunications

Government

Non-Profit

Media and Entertainment

Agriculture

Transportation and Logistics

Relevant Teams

Human Resources

Legal

Finance

Operations

Senior Management

Executive Leadership

Information Technology

Sales

Marketing

Research and Development

Administration

Customer Service

Production

Quality Assurance

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Human Resources Director

Legal Counsel

Department Manager

Project Manager

Sales Representative

Software Developer

Marketing Manager

Operations Manager

Administrative Assistant

Customer Service Representative

Financial Analyst

Research Scientist

Production Supervisor

Account Manager

Business Development Manager

Executive Assistant

Industries
Fair Work Act 2009 (Cth): Primary legislation governing employment relationships, termination of employment, notice periods, and unfair dismissal provisions in Australia
National Employment Standards (NES): Minimum employment entitlements including termination notice periods and redundancy pay requirements
Privacy Act 1988 (Cth): Governs the handling of personal information and privacy obligations during and after employment termination
Income Tax Assessment Act 1997: Covers taxation of termination payments and their proper categorization (e.g., genuine redundancy payments, unused leave entitlements)
Australian Contract Law: Common law principles governing contract formation, validity, and enforcement, ensuring the termination agreement is legally binding
Competition and Consumer Act 2010 (including Australian Consumer Law): Relevant for ensuring no unfair contract terms and proper business conduct in termination arrangements
Corporations Act 2001: Relevant for termination of executive employment and director positions in corporate contexts
State-specific Industrial Relations Acts: Additional state-based requirements for employment termination where applicable
Superannuation Guarantee (Administration) Act 1992: Ensures proper treatment of superannuation obligations in termination circumstances
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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