The Mutual Separation Agreement serves as a crucial legal document in Nigerian employment law contexts where both employer and employee agree to terminate their employment relationship on mutually acceptable terms. This document is typically used when parties wish to end the employment relationship amicably, often in situations involving corporate restructuring, career transitions, or other non-contentious circumstances. It encompasses essential elements required under Nigerian labour law, including financial settlements, benefit arrangements, confidentiality provisions, and release of claims. The agreement provides legal protection for both parties by clearly documenting the terms of separation and ensuring compliance with relevant Nigerian employment legislation. It's particularly important in preventing future disputes by establishing a clear record of the agreed separation terms and mutual obligations.
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1. Parties: Identification of the employer and employee, including their full legal names and addresses
2. Background: Brief history of the employment relationship, including start date and current position
3. Definitions: Definitions of key terms used throughout the agreement
4. Separation Date: Specification of the effective date of employment termination
5. Final Payment and Benefits: Details of salary, allowances, and benefits payable up to the separation date
6. Separation Package: Details of severance payment, ex-gratia payments, and other separation benefits
7. Tax Treatment: Clarification of tax implications and responsibilities for all payments
8. Company Property: Requirements for return of company property and documents
9. Confidentiality Obligations: Ongoing confidentiality obligations post-employment
10. Full and Final Settlement: Confirmation that the agreement represents full and final settlement of all claims
11. References: Agreement on the nature and content of employment references
12. Governing Law: Specification that Nigerian law governs the agreement
13. Execution: Signature blocks and execution requirements
1. Garden Leave: Include when the employee will be on garden leave prior to the separation date
2. Non-Compete Obligations: Include when there are post-employment competition restrictions
3. Non-Solicitation: Include when restricting employee from soliciting clients or staff
4. Outplacement Support: Include when the company is providing career transition services
5. Share Options/Awards: Include when dealing with existing employee share schemes
6. Medical Coverage Extension: Include when extending medical benefits beyond separation
7. Legal Counsel: Include when the employee has been advised to seek independent legal advice
8. Handover Requirements: Include when specific handover protocols are needed
9. Public Announcements: Include for senior employees where communication of departure needs managing
1. Schedule 1 - Payment Calculations: Detailed breakdown of all payments including final salary, severance, and benefits
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Benefits Summary: Details of benefit entitlements and their treatment post-separation
4. Appendix A - Resignation Letter: Standard format resignation letter to be signed by employee
5. Appendix B - Release of Claims: Detailed release of all employment-related claims
6. Appendix C - Reference Template: Agreed format and content of employment reference
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