The Redundancy Agreement is a crucial document used in Irish employment law contexts when an employee's position becomes redundant due to organizational restructuring, economic circumstances, or other legitimate business reasons. This agreement is designed to comply with Irish statutory requirements, particularly the Redundancy Payments Acts 1967-2014 and related employment legislation. It typically becomes necessary when an employer needs to formalize the termination of employment due to redundancy, ensuring all statutory obligations are met while potentially offering enhanced terms. The agreement includes essential details such as termination dates, payment calculations, benefit arrangements, and mutual obligations, serving as a legally binding document that protects both parties' interests and helps prevent future disputes. The Redundancy Agreement should be used in conjunction with proper consultation processes and must reflect any collective agreements or industry-specific requirements applicable under Irish law.
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1. Parties: Identification of the employer and employee, including full legal names and addresses
2. Background: Context of the redundancy situation and confirmation that proper consultation has taken place
3. Definitions: Key terms used throughout the agreement including 'Termination Date', 'Statutory Redundancy Payment', and other relevant definitions
4. Termination of Employment: Confirmation of the redundancy and termination date
5. Payments: Details of statutory redundancy payment, notice pay, and any additional payments
6. Tax Treatment: Explanation of tax treatment of various payments and employer's position on tax indemnity
7. Company Property: Requirements for return of company property and handling of company information
8. Employee Obligations: Ongoing confidentiality obligations and other continuing duties
9. Full and Final Settlement: Waiver of claims and full settlement provisions
10. References: Agreement on the form and content of employment references
11. Governing Law: Confirmation that the agreement is governed by Irish law
1. Enhanced Redundancy Package: Used when offering payments above statutory minimum, including calculation method and conditions
2. Post-Termination Restrictions: Include when maintaining existing or imposing new restrictive covenants
3. Outplacement Support: When offering career transition or outplacement services
4. Garden Leave: Include if employee will be placed on garden leave during notice period
5. Company Benefits Continuation: Used when extending certain benefits beyond termination date
6. Legal Costs: Include when employer is contributing to employee's legal costs for reviewing agreement
7. Re-employment/Re-engagement: Terms regarding potential future employment with the company or group
8. Collective Agreement References: Include when redundancy terms are affected by collective agreements
1. Schedule 1 - Payment Calculations: Detailed breakdown of all payments including statutory redundancy, notice pay, and any ex-gratia payments
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Continuing Benefits: Details of any benefits continuing post-employment and their duration
4. Appendix A - Adviser's Certificate: Certificate from employee's legal adviser confirming independent advice
5. Appendix B - Resignation Letter: Template resignation letter if required as part of the process
6. Appendix C - Reference Template: Agreed form of reference to be provided to future employers
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