Early Termination Of Employment Contract Template for England and Wales

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Key Requirements PROMPT example:

Early Termination Of Employment Contract

"I need an Early Termination of Employment Contract for a senior software developer who is leaving by mutual agreement, with a termination date of March 15, 2025, including garden leave provisions and specific clauses about ongoing project confidentiality."

Document background
An Early Termination of Employment Contract is used when both parties agree to end an employment relationship earlier than originally planned or contracted. This document, governed by English and Welsh law, is essential for protecting both employer and employee interests during the termination process. It typically includes provisions for final payments, notice periods, confidentiality obligations, and the return of company property. The agreement ensures compliance with UK employment legislation while providing a clear framework for the termination process and helping to minimize the risk of future disputes.
Suggested Sections

1. Date and Parties: Identification of employer and employee with full details

2. Background: Brief context of employment and reason for early termination

3. Definitions: Key terms used in the agreement

4. Termination Date: Specific date employment will end

5. Payment Terms: Details of final salary, notice pay, and other payments

6. Company Property: Requirements for return of company property

7. Confidentiality: Ongoing obligations regarding confidential information

8. Signing Block: Execution provisions and signature spaces

Optional Sections

1. Garden Leave: Terms of garden leave when employee is to remain employed but not attend work during notice period

2. Reference: Terms of employment reference to be provided when agreed as part of termination package

3. Post-termination Restrictions: Reminder of existing restrictions or new agreed restrictions when contract contains restrictive covenants

4. Legal Advice: Confirmation of independent legal advice when agreement includes settlement of potential claims

Suggested Schedules

1. Schedule 1: Payment Calculation: Detailed breakdown of all payments due

2. Schedule 2: Company Property List: Itemized list of company property to be returned

3. Schedule 3: Post-termination Restrictions: Full text of any continuing restrictions

4. Appendix A: Form of Reference: Agreed form of reference if applicable

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

Clauses
Relevant Industries
Relevant Teams
Relevant Roles
Industries

Employment Rights Act 1996: Primary legislation governing notice periods, statutory minimum notice requirements, protection against unfair dismissal, and calculation of final payments

Equality Act 2010: Legislation ensuring protection against discriminatory termination, compliance with equality provisions, and consideration of reasonable accommodations

Employment Protection (Consolidation) Act 1978: Covers employee rights during termination and procedural requirements for employment termination

Employment Act 2002: Outlines disciplinary and grievance procedures and statutory dispute resolution procedures

Working Time Regulations 1998: Governs accrued holiday pay calculations and holiday entitlement considerations during termination

National Minimum Wage Act 1998: Ensures compliance with final pay calculations and wage-related settlements

Data Protection Act 2018 and UK GDPR: Regulates handling of employee data post-termination and privacy considerations

Contract Law Principles: Common law principles regarding breach of contract and constructive dismissal considerations

Company Policies: Internal organizational procedures and policies affecting termination processes

Collective Agreements: Any applicable union or collective bargaining agreements that may affect termination terms

Industry Regulations: Sector-specific regulations that may impact employment termination

Restrictive Covenants: Post-employment restrictions and confidentiality obligations that need to be addressed in termination

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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