Document background
The Simple Severance Agreement is a crucial document used in Nigeria when terminating an employment relationship by mutual agreement or as part of a planned separation. This document is essential for protecting both employer and employee interests while ensuring compliance with Nigerian labor laws, including the Labour Act and Employee Compensation Act. The agreement typically comes into play during corporate restructuring, voluntary departures, or negotiated exits, providing a clear framework for severance payments, benefits, tax treatment, and ongoing obligations. It's particularly important in the Nigerian context where employment relationships are heavily regulated and formal documentation is crucial for legal compliance and risk management. The Simple Severance Agreement helps prevent future disputes by clearly documenting all aspects of the separation, including financial terms, confidentiality requirements, and release of claims.
