Arising out of the busy and vibrant economies of the world such as The United Kingdom, Russia and South Africa is the growing trend of Mutual Separation Agreements (MAS) in Employment Law.

What is a mutual separation agreement?

In layman terms, mutual separation agreements are arrangements where both parties to an employment contract, that is, the employee and employer, come to agreeable terms as to how to end the employment relationship.

MSAs are primarily characterized by joint/shared acceptance to the terms of the agreement by both the employer and employee and as such, are mutually beneficial to the parties.

Primarily in the Ugandan setting, employers are often dictators as and when it comes to formation and determination of contracts of employment. However the Employment Act 2006, though not perfect, sets out a number of safeguards for employees not to be exploited by Employers in the workspace. Meaning this may be relevant to you and your work relationship.

Applicability of mutual separation agreement.

In the prevalent Ugandan workspace, any employee is haunted by the prospect of being dismissed or terminated from their job especially due to misconduct. The Employment Act provides for the summary dismissal of any employee that has been guilty of gross misconduct. The same Act also provides that the said employee would still be eligible to a disciplinary hearing and it goes on to define the way such hearing has to be conducted.

Even after such a hearing, an employee that feels that they were wrongly dismissed can now plead their case before the Labor Officer who, more often than not, shall side with the Employee unless the Employer can prove their case completely.

Few to no employers, if any, are willing to take on a person that was fired for misconduct at their former workplace especially if the misconduct was gross. And any employee would seek redress from the Labor officer if they believed the dismissal was unfair.

In such circumstances, where both the employee and employer are likely to lose from the pending termination of contract, it is wise to enter into a MSA.

By entering such an arrangement, the employer steers clear of the troubles that come with dispute resolution in the Labor office or court of law. Then the employee is able to get something out especially a certificate of

What are the main terms in a mutual separation agreement?

There is no clear cut law or regulations that govern mutual separation agreements in Uganda. However, considering that the relationship between an employee and employer is contractual in nature, the law on contract can be used to regulate such an arrangement.

The most important clauses to include in a mutual separation agreement are as follows: 1. A termination date: this clause basically stipulates when the employment relationship will come to an end.

2. Non-disparagement Clause: this basically prohibits both parties from commenting negatively about each other.

3. Non-disclosure clause: the agreement may include a clause that prevents the employee from working for a company competition for a specified period.

4. Severance Pay clause: for most employers, the primary purpose of the agreement requires the employee to waive any potential legal claims. In exchange of this waiver, an employee separation agreement can

The termination of an employment contract can be as bloody and painful as any divorce. But it doesn’t have to be. After all, it’s not personal, it’s business. Mutual Separation agreements provide a smooth and soft exit for employees as they allow former employees to leave with their dignity intact and hope for future employment elsewhere and to the employer, a peace of mind, free of any bad press, or prospective legal proceedings and costs.

In conclusion therefore, these agreements in the long run accord protection to the employer and employee against frivolous or non-frivolous lawsuits that could arise. Happy Reading!