Mutual release clause

QUESTION Dear HR Community, I have been asked about a mutual release letter from an employee in my organisation. I’ve heard about a mutual release clause which can be included in a letter terminating contracts. Such clauses usually state that neither party can have claims against each other after the contract is terminated. Is it common to have such a clause in agreements between employees and employers? And can we issue a mutual release letter? If anyone has done so please share the circumstances and contents of such a clause or letter. We are a financial institution. Thank you so much. Nancy     REPLIES & COMMENTS     Hi Nancy, I have come across resignation circumstances where both parties mutually agree to waive serving notice period and or the payment-in-lieu of notice. This is usually stipulated in the employment contract. You will have to state the notice period requirement, however, mutually agree to waive…. Also, state that all employee benefits will cease on (date). However, do take into consideration if the employee has balance leave. Then he or she has to utilise such leaves and mutually agree to waive any notice period… Regards Sharon     Hi Nancy, I […]