A separation and settlement contract is a legal document which is drafted when an employee leaves an organization in which he is working. The contract states the settlement amount that the employee would be receiving in terms of his dues and compensation outstanding towards him. The contract is documentary evidence that the employee has left the organization and is relived from all his duties and responsibilities.
Sample Separation and Settlement Contract
Separation and settlement contract number: SS 45
Effective date of contract: 10th of December 2011
This separation and settlement contract has been drafted and entered between Tim Lee referred to as the employee and Gas Garments Limited referred to as the employer. As per the contract, Tim Lee who was working in the position of an assistant manager in Gas Garments is separating from the organization. The employer promises to pay the settlement amount to the employee.
Details of the employee:
Residential address: 32 Aspen High Road,
Miami, Las Vegas 7865
Contact number: 398235
Mobile number: 934514
E mail id: email@example.com
Details of the employer:
Official address: 41 High School Road,
Miami, Las Vegas 7843
Office Contact number: 396752
Fax number: 396754
E mail id: firstname.lastname@example.org
Following are terms and conditions that both the parties need to agree to:
- The employer will pay the employee all the outstanding incentives that the employee is supposed to receive.
- The employee has to pay his one month’s basic salary, if he does not serve the notice period.
- The employee will have to submit his mobile phone, laptop and any other asset that he has received from Gas Garments.
Signature of the employee: Signature of the employer:
Tim Lee Kim Bee
(On behalf of Gas Garments Limited)