Employee Exit Agreement Template for England and Wales

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Key Requirements PROMPT example:

Employee Exit Agreement

"Need an Employee Exit Agreement for our Senior Software Developer who is leaving voluntarily, including standard non-compete clauses and provisions for a £10,000 ex-gratia payment, with the termination date set for March 15, 2025."

Document background

The Employee Exit Agreement is a crucial document used in England and Wales when employment relationships are terminated, whether through mutual agreement, redundancy, or other circumstances. It provides legal certainty for both parties by clearly defining the terms of separation, including financial settlements, continuing obligations, and waiver of claims. This agreement is particularly important for protecting both employer and employee interests, ensuring compliance with UK employment law, and preventing future disputes. The document typically requires independent legal advice for the employee to ensure enforceability.

Suggested Sections

1. Parties: Identification of employer and employee

2. Background: Context of employment and reason for termination

3. Definitions: Key terms used throughout the agreement

4. Termination Date: Specified date of employment termination and confirmation of employment end

5. Final Payment: Details of final salary, benefits, and any termination payments including tax treatment

6. Company Property: Return of company assets, property, and data

7. Confidentiality: Ongoing obligations regarding confidential information and trade secrets

8. Waiver of Claims: Employee's waiver of employment-related claims and statutory rights

Optional Sections

1. Garden Leave: Terms of garden leave during notice period, including duties and restrictions

2. Post-termination Restrictions: Non-compete, non-solicitation, and other restrictive covenants

3. Reference: Terms and format of employment reference to be provided

4. Outplacement Support: Details of career transition assistance and support services

5. Director Resignations: Terms of resignation from director and officer positions

Suggested Schedules

1. Schedule 1: Payment Calculation: Detailed breakdown of all payments including salary, benefits, and statutory entitlements

2. Schedule 2: Company Property List: Comprehensive inventory of company items to be returned

3. Schedule 3: Post-termination Restrictions: Detailed terms of restrictive covenants and non-compete obligations

4. Appendix A: Form of Reference: Agreed template of employment reference

5. Appendix B: Certificate of Compliance: Employee declaration of compliance with return of property and information

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

alex.den.21@genieai.co

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