Employment Deed of Release

What is a deed of release of employment​?

An employment deed of release is a legally binding agreement used in Australia to formally settle and finalise matters arising from the end of an employment relationship, including claims, demands or disputes. The main purpose of this document is to record the termination of employment and confirm that both parties release each other from future legal claims connected with the employment or its termination.

A deed of release employment sample is widely used in Australia by startups, established businesses, online companies and sole traders to terminate employment in a compliant way. In most cases, the employee agrees to release the employer from existing or potential claims arising from the employment or its termination, usually in exchange for a settlement payment or other benefits.

A compliant Fair Work Deed of Release defines the conditions under which the employer is being released from any claims, demands or disputes related to the employment or its termination, including:

• scope of release;
• amount of compensation;
• confidentiality obligation s;
• details of the parties involved; and
• applicable law.

When should this employment deed of release be used?

A solid deed of release employment sample is a practical legal solution when:

• ending employment relations in the case of a redundancy;
• termination of a fixed-term employment contract;
• ending the employment contract due to failure to pass the probation period;
• termination of employment because the employee failed to comply with internal policies, etc.

What should be included in the deed of release employment template?

The full and complete deed of release of employment must include a number of important elements:

Details of the Parties

This is one of the most important sections of the document since it defines the party who is being released, such as an employer, and the party who provides the release, such as an employee. The document must include their full legal names, ABN and ACN numbers (for the employer), registered business address or mailing address, contact email and phone number.

Scope of Release

It is not sufficient to simply state that the employer is being released from all claims. The scope of release is more detailed in nature, thus the following components should be addressed:

• Who is released? It is evident that the employer is the one who is being released under this deed of release employment. However, parties may also include a wider scope, such as the employer’s successors, officers, employees, partners, contractors or agents, who could also be covered by such a release.
• Which claims are being covered? The concept of a claim is a broad, therefore the document should give some clarity on which types of claims are covered. The parties may cover claims for loss, damage or injury that relates to employment or its termination, claims that are currently known and claims that may be unknown, any demands, damages and disputes.

Compensation

To make a deed of release Fair Work Act 2009 compliant, an employer is required to pay compensation to an employee. Such compensation is not the same as an employee’s entitlements associated with their work and employment, including wages, salaries, bonuses and other entitlements. The compensation under the employment deed of release is the other type of compensation that should be paid on top of such entitlements. Besides, Australian law does not prescribe a specific threshold or amount for such compensation.

Obligations of the Parties

In Australia, the employment deed of release template usually includes the list of additional obligations parties should additionally follow:

• Confidentiality Obligations. Parties are usually required to keep matters discussed and agreed upon in the text of this deed confidential, including the amount and nature of any consideration and the circumstances of the employment.
• Employment Reference. Parties may agree that the employer is required to provide an employment reference letter following termination of employment. This is optional, though lots of employment deeds of release in Australia tend to have that clause.
• Job Placement Assistance. An employer can agree to provide assistance to a former employee in seeking new employment opportunities elsewhere.
• Non-disparagement. This is a mutual obligation for both parties not to disparage, denigrate or harm each other’s reputation.

Australian Deed of Release Employment Checklist

After this deed is ready, parties have to complete a few additional steps to finalise the document.

Read the Document

Both parties must carefully read the document to make sure it correctly reflects their initial intentions. For an employee, it is highly recommended to take additional legal advice to ensure that they, as the weaker party in employment relations, understand the consequences of signing this deed.

Sign and Date the Document

After that, parties must sign this deed of release employment Australia to make it legally binding. Without either party’s signature, the document is not enforceable in the court. It is advisable to sign the document in two identical copies, one copy per person.

There is generally no requirement to register or notarise the document. However, each party’s signature should be additionally witnessed by at least one witness. A suitable witness should be at least 18 years old, of sound mind, and not directly interested in the outcome of the transaction.

Comply with the Document

Once this deed of release termination of employment template has been signed, parties must comply with its provisions. Therefore, it is important to periodically review the document to remain aware of any ongoing limitations and restrictions.

Since an employer is required to pay compensation to an employee for such a release, the payment should be made in full within the timeline stipulated in the document.

How to customise this employment deed of release with FasterDraft?

To get a fully customisable document template, follow a few easy steps below:

1. Click the “Create Document” button.
2. Answer simple questions in the form.
3. Select a template’s format – deed of release employment template PDF or Word.
4. E-sign online.
5. Make a payment.

The document is ready for instant download immediately after the purchase.