Help, I was given a deed of release — what is it and do I need to sign one?

Signing it ends your ability to claim — permanently

If your employment has ended — through redundancy, a negotiated exit, or a settled dispute — you may be given a deed of release to sign, often alongside a final payment. It can look routine, and employers often present it that way. But a deed of release is a binding legal contract, and once you sign it, you generally can't change your mind.

What a deed of release actually is

In essence, it's an agreement where you accept a payment (or other terms) in exchange for permanently giving up your right to bring certain legal claims against your employer — commonly unfair dismissal, general protections, discrimination, or breach of contract claims arising from your employment or its end. It usually also includes confidentiality and non-disparagement clauses, restricting what you can say about the terms of your exit or about your former employer.

What you might be giving up

Depending on how it's worded, signing a deed can release your right to bring a claim you didn't even know you had at the time. This is exactly why these documents need careful reading — a broadly worded release can cover far more than the specific dispute that prompted it. Some claims, such as certain personal injury or workers' compensation claims, generally can't be validly released this way, but the boundaries of what can and can't be released depend on the specific wording and your circumstances.

Why there's an "independent legal advice" clause

Most deeds include a clause requiring you to confirm you've had the opportunity to obtain independent legal advice before signing. This protects both sides — it supports the deed being enforceable, and it's meant to ensure you actually understand what you're agreeing to. Many employers will contribute a fixed amount toward that advice, sometimes several hundred dollars, precisely because they expect you to get it. If that's on offer, it's worth using — declining it doesn't get you a better outcome, it just means you sign without understanding the fine print.

What to check before you sign

• Exactly which claims are being released — is it limited to your termination, or does it cover everything, everywhere, forever?
• Whether the payment reflects what you might genuinely be owed or entitled to claim;
• What the confidentiality and non-disparagement clauses actually restrict you from saying, and to whom;
• Whether there's a reference clause, and whether it says what you were told it would say; and
• Whether there's a deadline to sign, and whether that's a genuine deadline or pressure tactic.

Do you have to sign it?

No. A deed of release is a proposal, not an instruction — you're free to negotiate its terms, or decline to sign at all, though declining may mean the associated payment doesn't proceed either. Before you sign anything, or before you refuse, it's worth understanding exactly what you'd be giving up and whether the terms on offer are fair.

This article is general information only and does not constitute legal advice. What a deed of release covers, and whether its terms are fair, depends entirely on its specific wording — speak with one of our employment lawyers before you sign.

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