Yeah it's a Takedown: Do you need a Deed of Release?

I don't think you're ready for the takedown

Break you into pieces in a world of pain

‘Cause you’re all the same

Yeah, it's a takedown

Takedown by Huntri/x or Twice, from K-Pop Demon Hunters

How does a girl band that sing sweetly to heaps of fans and also have a side gig where they kill monsters and/or boy bands (aka K-Pop Demon Hunters) relate to the world of employment law? Easy.

When a new leader/CEO is put in place, what’s one of the first things that happens? They “refresh” the executive team.  Some people make the cut, and others are “moved on”.

But how are those executives moved on? There’s usually no real performance or conduct issue.  There may be an argument for redundancy i.e. the role is no longer required to be done by anyone, if the new leader has a new direction or strategy.  But that doesn’t usually work if you’re the Chief Financial Officer or Head of Human Resources – those types of roles are usually still required in an organisation. So there’s no valid reason under employment law…..but they just don’t fit with the new CEO or they didn’t meet some sort of loyalty test.

So, how does a new leader gear up and take them down? Through Deeds of Release.

I'ma gear up and take you down

Woah-oh, da-da-da, down

It's a takedown

Woah-oh, da-da-da, down

I'ma take it down

Woah-oh, da-da-da, down

It's a takedown

Woah-oh, da-da-da, down (Take it down)

Why use a Deed of Release?

Usually those at executive levels are not covered by unfair dismissal laws because they are earning above the high income threshold (as at 1 July 2025 this is $183,100 per annum, but it is indexed yearly).  However, executives are still covered by general protections laws, discrimination law, workers’ compensation and minimum requirements under the Fair Work Act 2009 (Cth).

An employer can terminate an employment contract by providing the relevant notice period in the Executive’s employment contract and by giving notice in accordance with any terms in that contract.

However, for additional security, many employers use a Deed of Release.  This is a legal document that formally releases one party from obligations, claims or liabilities to another party.  This means that in exchange for giving up any rights to pursue legal claims against an employer, the executive is provided with some favourable terms that are set out in the Deed of Release.

A Deed of Release can be used to settle certain disputes rather than going to court.  It can also release parties from some contractual obligations e.g. relating to restraints, the vesting of shares or paying of bonuses.  It can also be used to waive any potential or actual claims for damages or compensation.  It is often used to finalise employment terminations so that both parties can walk away from the relationship.

What is included in a Deed of Release?

The Deed of Release must clearly set out the parties involved, what claims or obligations are being released and be properly signed and witnessed.

Most Deeds include some sort of compensation to give up rights or claims.  This could include monetary compensation such as salary or damages (subject to relevant tax requirements), shares, bonuses, leave liabilities etc and include payment of the costs of outplacement services or legal expenses.  (I’ve been asked to include the cost of tickets to see the Wicked musical in a Deed of Release…but that’s a story for another time).

Generally there are requirements for mutual confidentiality and mutual non-disparagement, with agreed statements to be made to outside parties such as other employees or to media outlets about the reasons for the ending of the employment relationship.

In exchange, the Executive generally agrees not to bring any claims against an employer.  However, some matters cannot be excluded within a Deed of Release.  This includes statutory superannuation payment claims and workers’ compensation claims.  It is recommended that legal advice is sought on exact terms of a Deed of Release.

Conclusion

Used appropriately, a Deed of Release can be a good option for all parties – everyone is able to exit the relationship with dignity, and with (mostly) what they want, and are then able to move on – it’s a “golden handshake”.

We're goin' up, up, up, it's our moment

You know together we're glowing

Gonna be, gonna be golden

Golden by Huntri/x (K Pop Demon Hunters)

The alternative can be a world of pain – gear up for a very messy court case, as well as a public relations nightmare, with a lot of time and money spent on fighting each other – with everyone trying to take each other down.

I'm 'bout to switch up these vibes,

I finally opened my eyes

It's time to kick you straight back into the night

I don't think you're ready for the takedown

Break you into pieces in a world of pain

‘Cause you’re all the same

Yeah, it's a takedown

Remotely Legal can assist employers and boards on all aspects of employment law, including advising on difficult people issues, reviewing policies and assisting with enterprise bargaining.  Remotely Legal can train your boards and management teams on how to deal with incidents and investigations.  Remotely Legal can also be your fully outsourced HR and people legal team.

RL Investigations, part of Remotely Legal, are a team of highly experienced and qualified lawyers and investigators, who can function as your independent, external investigation team providing fast, comprehensive and reliable investigation reports, workplace culture reviews and suggestions for organisational improvement. RL Investigations can also help your internal HR or investigation team to improve their investigations and assist decision makers in considering the right factors when making key decisions.

This blog is general advice only.  Please obtain legal advice in relation to your specific circumstances.  This blog was written by a human so please seek permission if you wish to copy any of it.