A Contract Separation Agreement is essential when formally terminating an employment relationship in Nigeria, providing a legally sound framework that protects both employer and employee interests. This document is typically used when employment is being terminated by mutual agreement, during restructuring, or in situations requiring a formal separation framework. The agreement must comply with Nigerian labour laws and typically includes provisions for final compensation, benefits, confidentiality, non-disparagement, and release of claims. It's particularly important in cases involving senior positions, sensitive information, or significant severance packages. The document helps prevent future disputes by clearly documenting all separation terms and ensuring all aspects of the termination are handled in accordance with Nigerian legal requirements.
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1. Parties: Identification of the employer and employee, including full legal names and addresses
2. Background: Brief history of employment relationship, reason for separation, and context of the agreement
3. Definitions: Definitions of key terms used throughout the agreement
4. Effective Date of Separation: Clear statement of when employment relationship ends
5. Final Payment and Benefits: Details of final salary, severance pay, and other monetary entitlements
6. Company Property: Requirements for return of company property and documentation
7. Confidentiality Obligations: Ongoing obligations regarding confidential information
8. Non-Disparagement: Mutual agreements not to make negative statements about each other
9. Release of Claims: Mutual release of legal claims between parties
10. Tax Matters: Treatment of tax obligations for separation payments
11. Reference and Communications: Agreement on how future employment references will be handled
12. Governing Law: Specification of Nigerian law as governing law
13. Dispute Resolution: Process for resolving any disputes arising from the agreement
14. Entire Agreement: Confirmation that this document represents the complete agreement
15. Execution: Signature blocks and execution requirements
1. Post-Employment Restrictions: Non-compete and non-solicitation clauses, used for senior positions or when protecting business interests
2. Intellectual Property Rights: Additional IP provisions, used when employee was involved in creative or innovative work
3. Share Options/Equity: Treatment of any share options or equity, used when employee has share-based compensation
4. International Considerations: Additional provisions for expatriate employees or international implications
5. Ongoing Cooperation: Terms for transition assistance or future cooperation, used when handover is complex
6. Legal Representation: Acknowledgment of independent legal advice, recommended for senior executives
7. Garden Leave: Terms of any garden leave period, used when employee is placed on paid leave before departure
8. Medical Benefits Extension: Details of continued medical coverage, if applicable
1. Schedule 1 - Payment Calculation: Detailed breakdown of all financial payments including salary, benefits, and severance
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Benefits Summary: Comprehensive list of benefits and their treatment post-separation
4. Schedule 4 - Outstanding Obligations: List of any outstanding obligations or commitments
5. Appendix A - Release Form: Standard form for release of claims
6. Appendix B - Confidentiality Agreement: Detailed confidentiality terms and obligations
7. Appendix C - Reference Template: Agreed format and content for future employment references
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