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.
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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
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
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
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