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Termination Agreement Form for the United Kingdom

Termination Agreement Form Template for England and Wales

A Termination Agreement Form is a legally binding document used in England and Wales to formally end an employment relationship between an employer and employee. It sets out the terms and conditions of the termination, including final payments, ongoing obligations, and any post-employment restrictions. The document ensures compliance with UK employment law while protecting both parties' interests and providing clarity on the termination process.

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What is a Termination Agreement Form?

The Termination Agreement Form is essential when formally concluding an employment relationship in England and Wales. This document is typically used when both parties have agreed to end the employment relationship, whether through mutual agreement, redundancy, or other circumstances. It includes crucial details such as termination date, final payments, benefits, ongoing obligations, and any settlement terms. The agreement ensures compliance with UK employment law while providing legal protection for both employer and employee. It's particularly important for documenting the terms of separation and preventing future disputes.

What sections should be included in a Termination Agreement Form?

1. Parties: Identification and details of the contracting parties

2. Background: Context of the employment relationship and reason for termination

3. Definitions: Key terms used throughout the agreement

4. Termination Date: Specific date when employment ends and notice period details

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

6. Company Property: Requirements for return of company assets and intellectual property

7. Confidentiality Obligations: Ongoing duties regarding confidential information and trade secrets

What sections are optional to include in a Termination Agreement Form?

1. Garden Leave: Terms and conditions of garden leave during notice period, if applicable

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

3. Reference Provision: Terms regarding future employment references and agreed form of reference

4. Legal Advice: Confirmation of independent legal advice and adviser details

5. Settlement Terms: Specific terms of any settlement agreement including waiver of claims

What schedules should be included in a Termination Agreement Form?

1. Schedule of Payments: Detailed breakdown of all termination payments including salary, benefits, and compensation

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

3. Post-termination Obligations: Detailed listing of ongoing obligations and restrictions after employment ends

4. Claims Release: Enumeration of statutory and contractual claims being waived under the agreement

5. Agreed Form of Reference: Template or agreed wording for future employment references

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

Jurisdiction

England and Wales

Publisher

Genie AI

Document Type

Cancellation Letter

Sector

Sales

Cost

Free to use
Relevant legal definitions

























Clauses






























Industries

Employment Rights Act 1996: Core employment legislation covering statutory notice periods, rights upon termination, and unfair dismissal provisions. This is fundamental for any termination agreement.

Equality Act 2010: Ensures protection against discriminatory termination, covers protected characteristics, and mandates equal treatment requirements in termination processes.

Employment Protection (Consolidation) Act 1978: Outlines employee rights during termination and statutory payment requirements that must be considered in termination agreements.

Contracts of Employment Act 1963: Establishes basic contractual principles and requirements for written statement of terms that affect termination agreements.

Companies Act 2006: Governs corporate authority for termination and director responsibilities in the termination process.

GDPR and Data Protection Act 2018: Regulates the handling of personal data post-termination and sets data retention requirements that must be addressed in termination agreements.

Common Law Principles: Encompasses contractual interpretation, breach of contract principles, and duty of good faith considerations in termination agreements.

Trade Union and Labour Relations (Consolidation) Act 1992: Covers collective agreements and trade union consultation requirements that may affect termination processes.

Limitation Act 1980: Sets time limits for legal actions related to termination agreements and associated claims.

Tax Legislation: Governs the tax treatment of termination payments and associated financial considerations in termination agreements.

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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