Deed of Release (Termination)
A Deed of Release (Termination) can be used when you have terminated an employee.
Last updated October 23, 2025
Suitable for Australia
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Frequently asked questions
Can I force an employee to sign a Deed of Release?
An employer cannot force or induce an employee to sign a Deed of Release, otherwise it can be set aside as being entered under undue influence or duress. However, if an employee was forced to sign a Deed of Release upon termination of employment, you should seek legal advice to determine whether you can be compensated against your former employer. This can be set aside by a court when an application is made. But, this is determined on the facts and circumstances of your case.
How legally enforceable is a Deed of Release?
A Deed of Release is a legally binding agreement that is entered between an employer and employee, on termination of employment. If there is uncertainty over some of the terms of the Deed of Release, it is important to get legal advice to determine the meaning and effect of that clause and whether they are enforceable to your case. If this particular clause is not enforceable, the lawyer can order that the term be removed or narrowed.
Should a lawyer review my Deed of Release?
It is important you speak to a lawyer before signing a Deed of Release. A Deed of Release will prevent you from making claims against your former employer so it is important to understand the extent of the clause and what you are giving up, in exchange for a lump sum payment. A lawyer should determine whether this Deed of Release will impose a blanket ban on all claims against your former employer or only for specific disputes. Also, lawyers should review the Deed of Release to determine whether your employer will provide you with a reference for future job applications. This will be very important if you want to continue working in the same industry.
Other documents you may need:
View Sample Deed of Release (Termination)
The Legal Risk Score of a Deed of Release (Termination) Template is Medium
Our legal team have marked this document as medium risk considering:
- The document includes a comprehensive release clause that could prevent an employee from pursuing any further claims related to their employment or its termination, potentially limiting legal recourse in unforeseen circumstances.
- Confidential information is heavily protected, requiring the employee to refrain from disclosing or using any such information post-termination, which could restrict future employment opportunities or personal projects that might relate to the knowledge gained.
- The document must be signed as a deed in order to be effective.
Users familiar with legal documents might find this deed relatively standard in its protections for the employer, but should be cautious of the extensive commitments and releases required from the employee.
Articles about Deed of Release (Termination)
What Is A Release Deed?
A deed of release is important as it ensures both parties are fully aware of the agreements and terms of a settlement. This article will cover everything you need to know about release deeds.
Should Employees Sign a Deed of Release?
Being an employer can be challenging. As employees come and go, it's good to know when a deed of release is useful. Read more about when to use one here.
What is a Deed of Settlement? (2025 Update)
Looking for an alternative to litigation? Find out how a deed of settlement can provide a negotiated resolution to your legal dispute here.
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What Is A Deed Of Priority?
It's likely you'll come across an important legal document known as a Deed of Priority at some point. Read more about what they are and how they work here.
What Is a Golden Handshake?
Some employment contracts contain a 'golden handshake' clause. Read this guide for a brief rundown of what you need to know about them.
What is the Difference Between Deeds and Agreements?
Interested in learning more about the differences between deeds and agreements? This blog will explain everything you need to know.
What Employees Must Do After Employment Ends
The end of an employer-employee relationship does not mean the end of employee obligations. Find out what employee obligations exist post-employment here.
What Is an Anticipatory Breach?
An anticipatory breach is a breach of contract that is yet to occur. Find out what options each party has in this article.
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