The idea behind a deed of release is to release you (or former employer) from obligations or further claims in return for money or other consideration to your employee (or ex-employee). It is sometimes called “go away money” or “commercial settlement” because it saves you time or money.
It is a legally binding agreement between you and your employee or ex-employee. Usually you would negotiate a financial sum so they agree not to exercise their usual rights and pursue any further claims, for example, taking you to the Fair Work Commission.
A deed of release can also apply to confidentiality, use or return of company property, references or other obligations after the end of employment. For example, a non-disparagement clause prevents the employee from saying or doing anything negative afterwards that might affect your company or reputation.
Employsure advisers will help you craft a legal deed of release. For peace of mind, please call our 24 hour Advice Line now on 1300 651 415.