An employment Deed of Release is a legal expression used to settle disputes or prevent them from arising in the first place. A Deed of Release is often a win/win situation as both parties come to a mutual agreement and grounding of compromise. The term ‘Deed of Release’ means just that, to release the other party of obligations or future liability.
This liability can come from contractual claims or most commonly, claims which have arisen from a termination of employment. A deed does not always involve the deliverance of money it can also include a promise to carry out a specific act or deal. However, in terms of a redundancy settlement it typically included all entitlements; long service leave, sick leave and personal leave accrued to the date of termination.
In terms of a Deed of Release as a redundancy settlement. The deed acts as a security blanket for the employer as once the employee has agreed, accepted and signed the terms of the agreement it prevents any further claims to the company or employer.
It is recommended for an employer terminating their employee that the termination payment by explicitly stated in the Deed of Release. This protects the employer from having a claim brought against them, especially an unfair dismissal application at the Fair Work Commission. A well-executed Deed of Release meets the needs and protects both the employee and the employer for future action being brought against either of them. To ensure that the Deed of Release is fair and covers all relevant bases, it is best to seek legal advice.
When creating and employment deed of release, It is the role of an employer to include the following:
- Prohibition of further legal proceedings
- Confidentiality agreement
- Terms of the release
- Terms governing payment, specifically that of a time frame
- A commitment by the terminated employee to adhere to the terms
When engaging in a Deed of Release it is best to seek legal advice from a specialised solicitor. For any requires about deeds, as an employee or employer, contact JFM Law on (02) 9199 8597 for a no obligation chat. If you would rather get in contact through email, send your question through or by email at wehelp@jfmlaw.com.au.
More information
Join our ADLV Law (formerly Andreyev Lawyers) team as we answer your FAQs about Deeds of Release. To access the transcript, click here.
