Contracts and Deeds of Release

Contracts and Deeds of Release

For any agreement reached between employers and employees it is critical to properly record terms to ensure their enforceability, this most often arises either in the form of a contract or deed of release.

Difference between a Contract and Deed of Release

The main differences between a contract and a deed are:

• A deed does not have to contain consideration for both parties which is a necessary element for a contract;

• A deed can be operative before it is signed by both parties which is generally not the case for a contractual document; and

• The statutory limitation period for a contract is 6 years but it is 12 years for a deed.

Deeds of release and settlement are often used in proceedings brought for unfair dismissal, general protections and workplace discrimination.

Deed of Release, Termination and Settlement

Because releases are often provided in the deed document from claims that an employee could make or may have been able to make in the future, it is important to understand the risks and each provision.

For more information on this topic, see our in-depth article here.

The article, the content and references made are intended to keep an audience updated with information. It is not intended that the article or part of it should be relied upon as advice. Information provided may not apply to in all circumstances or in particular situations. If you do want particular advice or you have any questions, we welcome you to contact us on (02) 9189 5905 or at general@cdclaw.com.au