A deed of release is a legal agreement between two parties, typically an employer and an employee, which serves to settle a dispute between them. A deed of release is often utilised when an employee is considering or has made a claim against their employer for issues such as wrongful termination, unpaid entitlements, or discrimination. It serves to outline the terms and conditions agreed upon by both parties, often including releases, confidentiality, non-disparagement and other legal provisions. By signing a deed of release, both parties agree to resolve the matter and waive any further legal action related to the issues in dispute.
Benefits of a Deed of Release
For employers, the main benefits of entering into a deed of release is that it can provide to resolve the dispute quickly and without the need for costly and time-consuming litigation. By negotiating and agreeing upon the terms of the deed of release, the employer can often avoid the risk on unfavorable judgment in court or the negative publicity that can arise from a prolonged legal dispute. The employer also retains the ability to determine both the monetary and non-monetary provisions offered to the employee under the deed.
Provisions to include in a Deed of Release
Below are some of the most common provisions found in a deed of release:
-
- Release: The release clause is typically the most crucial provision in the deed of release. It generally serves to prohibit the employee from pursuing or initiating any legal action against their employer. By agreeing to this clause, an employee is essentially waiving their right to bring future claims against their employer. However, it’s worth noting that certain claims such as workers compensation and superannuation claims cannot be waived.
-
- Confidentiality: The confidentiality clause requires the employee to return to their employer any confidential material in their possessions. It also prevents an employee from using or disclosing any of the employer’s confidential information which was obtained during their employment. This provision safeguards the employer’s sensitive information and prevents the misuse of confidential information by former employees.
-
- Non-disparagement: The non-disparagement clause prohibits a former employee from making any statements that could negatively impact the employer’s reputation. This provision helps mitigate any reputational risks that may arise from disputes with former employees.
Key takeaways
A deed of release can provide a quick and a cost-effective way to resolve disputes between employers and employees.
For more information on a deed of release or if you think a deed of release may be beneficial to your business, National Employment & Labour Lawyers have a dedicated team who can assist you with your employment matters. We offer a free and confidential initial consultation, where we can discuss your situation and provide you with tailored advice.Get in touch with us today!
Disclaimer: The information contained in this article is of a general nature and is not intended to be relied upon as, nor to be a substitute for, specific legal or professional advice.
