Document background
This document is utilized when an employer and employee mutually agree to end their employment relationship, typically as part of a voluntary redundancy program or organizational restructuring. A Voluntary Severance Agreement under Australian law serves as a comprehensive record of the separation terms, protecting both parties' interests while ensuring compliance with federal and state employment legislation. It outlines severance payments, statutory entitlements, tax treatments, and ongoing obligations, while providing clarity on the termination process. The agreement is particularly important in the Australian context as it must align with Fair Work Act requirements and other relevant employment laws. It should be customized based on factors such as the employee's seniority, length of service, and specific industry requirements.
