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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What is a deed of release (termination)?
What is a deed of release (termination)?

Is a deed of release legally binding?
Is a deed of release legally binding?
Yes, provided it's properly executed as a deed, not just signed like an ordinary contract, and signed voluntarily by both parties.
Unlike ordinary contracts, a deed doesn't need consideration to be enforceable, but it does need signing, and usually witnessing, in the way the document specifies. A deed signed under pressure, or without the employee understanding what they're giving up, can be set aside.

How does a deed of release protect employers?
How does a deed of release protect employers?
A deed of release stops a former employee bringing most employment-related claims, including unfair dismissal, once they've signed voluntarily and received something in exchange, usually a final payment.
It gives the employer a documented, enforceable end point to the relationship instead of an ongoing risk of a claim resurfacing months later. It works best combined with confidentiality and non-disparagement clauses covering the departure itself.
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Frequently asked questions
Can an employer require an employee to sign a deed of release?
keyboard_arrow_upCan I refuse to sign a deed of release?
keyboard_arrow_upWhat are the risks for an employee in signing a deed of release?
keyboard_arrow_upDoes signing a deed of release prevent all future claims by the employee?
keyboard_arrow_upCan a deed of release prevent an underpayment or unpaid wages claim?
keyboard_arrow_upDoes a deed of release settlement attract superannuation?
keyboard_arrow_upHow is a deed of release different from a termination letter?
keyboard_arrow_upWhat steps are required for a deed of release to be valid?
keyboard_arrow_upWho can witness a deed of release?
keyboard_arrow_upShould a deed of release be reviewed before signing?
keyboard_arrow_upWhat's the most common mistake employers make with a deed of release?
keyboard_arrow_upHow long does a deed of release take?
keyboard_arrow_upHow much does a deed of release cost, template versus a lawyer?
keyboard_arrow_upView 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.
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