Deed of Release (Termination)

A Deed of Release (Termination) can be used when you have terminated an employee.

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Last updated October 23, 2025

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Suitable for Australia

Deed of Release  (Termination)

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What is a deed of release (termination)?

A deed of release (termination) is a legal document signed when an employee leaves, finalising all outstanding issues and preventing future claims between the employer and employee.
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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.


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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?

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Can I refuse to sign a deed of release?

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What are the risks for an employee in signing a deed of release?

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Does signing a deed of release prevent all future claims by the employee?

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Can a deed of release prevent an underpayment or unpaid wages claim?

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Does a deed of release settlement attract superannuation?

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How is a deed of release different from a termination letter?

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What steps are required for a deed of release to be valid?

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Who can witness a deed of release?

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Should a deed of release be reviewed before signing?

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What's the most common mistake employers make with a deed of release?

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How long does a deed of release take?

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How much does a deed of release cost, template versus a lawyer?

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View Sample Deed of Release (Termination)

Deed of Release  (Termination)
risk level indicator at Medium level

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.

Meet Our Users

Articles about Deed of Release (Termination)

What Is A Release Deed?
By Raja Abbas|Dec 3, 2024

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?
By Paul Taylor|Nov 26, 2025

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)
By Ilyas Omari|May 14, 2025

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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By Lawpath|

terminate-discretionary-trust

Article about terminate-discretionary-trust

What Is A Deed Of Priority?
By Paul Taylor|Jun 2, 2025

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?
By Paul Taylor|May 24, 2024

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?
By Angela Omari|Mar 15, 2022

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
By Shantelle Dang|Nov 26, 2025

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?
By Daniel Alkurdi|May 24, 2024

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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