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(03) 9650 4555 A deed of release is a signed agreement between an employer and employee which creates legally enforceable terms of a termination. The basis of the agreement is that the employer offers financial compensation in exchange for legal obligations.
Common terms within a deed of release include: a payment offered to the employee, confidentiality surrounding the termination, restrictions on the employee’s ability to sue the employer for unfair dismissal purposes and control on the use of the employer’s confidential information. A deed of release usually favours the employer as they restrict an employee from commencing legal proceedings.
An employee has the right to seek legal advice before signing the deed of release, and the ability to negotiate terms within the deed. If negotiated properly, a deed of release is more convenient for both parties and bypasses any further need for mediation or litigation. However, once the deed is freely signed, it becomes legally enforceable and both parties are bound by the terms within.
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Contact UsUsually, once a deed of release is signed, it is accepted to have been agreed by both parties and legally enforceable. However, you may be able to have your deed of release set aside depending on all of the facts and circumstances surrounding your matter; specifically, whether there was any duress, undue influence and unconscionable bargaining involved.
If there is a favourable non-disparagement clause and your former employer has made disparaging comments following your departure, you should seek legal advice as to how you may be able to bring a claim against your former employer.
If your former employer is not caught under a breach of a non-disparagement clause, you should consult a lawyer to review the content of the DOR to assess if there are any alternative avenues available.
You have the right to seek legal advice before signing the deed of release. You may also refuse to sign the deed and negotiate terms of the settlement.
If the deed of release includes a term which requires the ex-employee to discontinue the ongoing claim, you will need to discontinue the claim to receive the compensation. However, if there is no express clause requiring the employee to discontinue, you should seek legal advice regarding the ability to continue the ongoing claim.
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For additional employment law information please see our pro-bono site Employment Law Online :www.employmentlawonline.com.au