Employee Severance Agreement Template for New Zealand

The Employee Severance Agreement is a crucial document used in New Zealand employment law contexts when an employment relationship is being terminated by mutual agreement or through redundancy. It serves to formalize the separation terms while protecting both parties' interests and ensuring compliance with New Zealand legislation, particularly the Employment Relations Act 2000, Holidays Act 2003, and Privacy Act 2020. This agreement typically includes provisions for severance payments, statutory entitlements, confidentiality obligations, and mutual releases, while incorporating New Zealand's unique requirements for good faith dealings and fair process. The document is essential for managing organizational change, restructuring, or individual employment separations in a legally compliant and professionally managed manner.

1. Parties: Identification of the employer and employee, including full legal names and addresses

2. Background: Brief context of the employment relationship and circumstances leading to the severance agreement

3. Definitions: Key terms used throughout the agreement, including 'Termination Date', 'Severance Payment', and other relevant definitions

4. Termination of Employment: Specific details about the termination, including the effective date and nature of separation

5. Severance Payment: Details of the severance payment amount, calculation method, and payment timing

6. Statutory Entitlements: Outline of all statutory entitlements including holiday pay, long service leave, and other accrued benefits

7. Tax Treatment: Explanation of how the severance payment and other amounts will be treated for tax purposes

8. Company Property: Requirements for returning company property and handling of company information

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

10. Non-Disparagement: Mutual obligations to refrain from making negative statements about each other

11. Release and Waiver: Mutual release of claims and legal rights, subject to statutory limitations

12. Continuing Obligations: Any obligations that survive the termination of employment

13. Execution: Signature blocks and attestation requirements