This Agreement is made on this ________day of ________, BETWEEN
XYZ, having its registered office at ___________, hereafter referred to as ‘the Company’;
ABC, residing at _________________, hereafter referred to as ‘the Employee’
(A) ABC is employed by XYZ under the terms of Service Agreement dated _______. It is hereby intended that ABC’s employment be terminated with effect from ____________.
(B) In accordance with the termination, XYZ and ABC are desirous of entering into this compromise agreement. The purpose of this agreement is to settle any claims by ABC arising out of employment with XYZ.
BOTH PARTIES SET FORTH THEIR SIGNATURE ON THE FOLLOWING CONDITIONS:
1. Termination of Employment
XYZ shall terminate ABC’s employment with effect from __________.
2.1 The Company shall pay all outstanding salary inclusive of holiday pay to the Employee within 7 days from the date of this compromise agreement. The said amount will be less any tax and national insurance contributions up to and including the date of termination.
2.2 Severance Payment
In addition to outstanding payments to be made in accordance with paragraph 2 above, the Company shall pay the Employee as compensation for loss of employment the sum of $____ as Severance Payment, within 14 days of signing this compromise agreement, from which the Company will deduct applicable taxes and other federal and state contributions.
2.3 Insurance & Health Care Coverage
As per compromise agreements, the Company shall maintain all health care coverage, including dental coverage and all life insurance policies for the Employee up to and including the date of termination.
3. Company Vehicles
The Employee agrees to return on _______ day of _____ the Company’s vehicle bearing registration no. ______________ to the Company along with any documentation related to the vehicle. The Employee undertakes to return the said vehicle in a satisfactory condition at the Company’s premises at ____________________________.
4. Resignation from Director/Officer
4.1 According to compromise agreements the Employee shall resign as a director/officer of the Company and any of its associated companies with effect from __________. The Employee shall do so by tendering a letter of resignation in accordance with draft in the Schedule attached to this agreement.
4.2 The Employee shall complete all acts and formalities that the Company may require in relation to the Employee’s resignation. This will include all other offices, branches, and affiliates where the Employee may have been appointed during the course of employment.
5.1 The Employee and the Company shall not directly or indirectly publish or communicate disparaging remarks in writing or otherwise, on any matters concerning each other.
5.2 The Employee agrees to keep all the terms of the compromise agreement confidential and shall not disclose it to any other employee of the Company or third party, expect if required by law.
6.1 The Employee shall return any and all property of the Company that the Employee may have in his/her possession on the date of termination. This includes and is not limited to equipment, records, documents, and computer software. The Employee undertakes not to make any copies of the Company's property, and shall return all originals, copies, and extracts that may have been made during the course of employment.
7. Legal Expenses
Legal expenses related to the preparation and negotiation of the compromise agreement will be paid by the Company.
Upon signing the compromise agreement, the Employee agrees that the terms included are in full and final settlement and there are no further claims that he/she can make against the company. However, this is not limited to the Employee’s rights to claims under law for wrongful, dismissal, disability or racial discrimination, or breach of the Fair Labor Standards Act FLSA.
9. Acknowledgement of Legal Advice for Employee
The Employee declares that he/she has received legal advice from a qualified lawyer on the terms and conditions of this compromise agreement from __________________.
This compromise agreement supersedes all prior compromise agreements, warranties, representations, whether oral or written and is binding on both parties.
For and on behalf of XYZ
For and on behalf of ABC