For employees and employers
Deed of release: what you sign away, and whether a lawyer should read it first
A deed of release is the document an employer asks you to sign when it wants an exit to be final: you take a payment, you give up any claims, and both sides walk away. Sometimes that is a fair trade. Sometimes the payment is a fraction of what the claim was worth, or the deed contains a restraint, a confidentiality clause or a non-disparagement term that will bite later. The one thing everyone agrees on is that it is very hard to undo after signing.
Updated . General information, not legal advice.
Time limits that apply
| What | Limit | Source |
|---|---|---|
| If a claim is still open while you consider the deed | The 21-day dismissal deadlines keep running; signing does not pause them, and lodging does not breach a deed you have not signed | Fair Work Act ss 394(2), 366 |
Do you need a lawyer for this?
Advice usually pays for itself when
- You have not signed yet and the deed follows a dismissal, redundancy or resignation where you think you may have had a claim.
- The deed contains a restraint, a confidentiality term that covers the facts of your treatment, or a clause requiring you to resign rather than be dismissed.
- The payment is significant and the tax treatment matters, or it is described as a payment in lieu of something you dispute.
- You are an employer drafting a deed and want it to actually hold.
The free route is usually enough when
- The deed simply confirms the final pay and entitlements you are owed anyway, with no extra payment and no claim you were considering.
- You have already decided to accept and the amount is small, and you only want to understand the words. The free tool explains the standard terms.
What does a deed of release actually do?
It records an agreement: the employer pays an amount, and in return you release it from all claims arising from your employment and its ending, usually including claims you do not yet know about. It commonly adds mutual confidentiality about the terms, sometimes about the circumstances, a non-disparagement clause each way, an agreed reference or statement of service, and a confirmation that final entitlements have been paid. Once executed, a court will generally hold you to it. The narrow exceptions, such as a deed signed under real duress or induced by a misrepresentation, are hard to make out. Treat the signature as final because in practice it is.
What should I check before signing?
What claims you are releasing, and whether any of them was worth more than the payment. Whether the payment is on top of your final entitlements or dressed up as including them. Whether a restraint has been slipped in, and whether it is wider than the one in your contract. What the confidentiality clause covers, because a clause that stops you describing how you were treated is different from one that keeps the settlement figure private, and confidentiality cannot lawfully stop you speaking to a regulator or getting legal advice. Whether you are being asked to resign, and what that does to any claim or to future benefits. And the tax line: how the payment is characterised affects what you keep.
How do employers use deeds well?
A deed is only as good as the process around it. An employer that hands over a deed with a two-day deadline and no encouragement to get advice weakens its own document, because pressure is the main thing that lets a deed be challenged later. A short, plain deed that clearly identifies the payment, the claims released and any restraint, given with a reasonable time to consider it and a recommendation to seek advice, is far more likely to hold. Employers should also avoid confidentiality terms that overreach into regulator reporting or, in harassment matters, into silencing a complainant, since those attract scrutiny and may be unenforceable.
Can a deed be challenged after signing?
Rarely, and only on established grounds: the deed was signed under duress, it was induced by a misrepresentation, you lacked capacity, or the deed does not on its plain words cover the claim you now want to bring. Regret is not a ground. Discovering later that the claim was worth more is not a ground. Some statutory rights cannot be released at all, and a deed that purports to release them is ineffective to that extent. Whether any of this applies to you is a legal question, and the honest answer for most people who signed without advice is that the deed stands. That is why the advice window is before the signature.
When does a review pay for itself?
Almost always when there is an extra payment attached, because the payment is the employer's estimate of your claim and a lawyer can tell you whether it is a fair one. When there is any restraint or broad confidentiality term. When the exit was contested and you are being asked to characterise it as a resignation. And for employers, when the deed needs to be robust. Liquid Employment Lawyers is FairWork Mate's paid legal partner for deed reviews, an Australian employment law firm rather than a free government service, and it explains scope and fees up front. Set against a claim that can no longer be brought, a review is a small cost.
What is the free route?
The Fair Work Ombudsman on 13 13 94 confirms the final entitlements you are owed regardless of any deed, free. FairWork Mate's deed of release review tool explains the standard clauses and flags the ones that commonly cause trouble, and the redundancy and unfair dismissal guides help you value the claim you might be releasing. All free general information, not legal advice. FairWork Mate is not affiliated with the Fair Work Commission or the Ombudsman.
Free FairWork Mate tools for this
Talk to Liquid Employment Lawyers about this
Share a few details and their team will be in touch to talk it through. No obligation, and you decide whether to go further after that first conversation.
Liquid Employment Lawyers is an Australian employment law firm and FairWork Mate's paid referral partner, not free Fair Work advice. They discuss scope and any fees with you directly. FairWork Mate is not affiliated with the Fair Work Commission or the Fair Work Ombudsman. For free general guidance, use the tools above or call the Fair Work Ombudsman on 13 13 94.
Prefer to read about the partnership first? About Liquid Employment Lawyers
Common questions
How long do I have to consider a deed?
Whatever the employer allows, but a very short deadline is a pressure tactic and can weaken the deed. Ask for time in writing. Remember that any 21-day claim deadline keeps running while you consider it.
Can I lodge a claim and still negotiate a deed?
Yes. Lodging inside the 21 days protects your position, and a settlement at conciliation is usually recorded in a deed or terms of settlement anyway. Lodging is not a breach of a deed you have not signed.
Does confidentiality stop me talking to the Ombudsman or a lawyer?
No. A confidentiality clause cannot lawfully prevent you reporting to a regulator, giving evidence, or getting legal or financial advice, whatever the wording says.
Is Liquid Employment Lawyers free?
No. It is an Australian employment law firm and FairWork Mate's paid referral partner. Enquiring is free and there is no obligation. The free official route for entitlements is the Fair Work Ombudsman on 13 13 94.
Official sources
FairWork Mate AI
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General information and estimates only — not legal, financial or tax advice. Always check your specific award, agreement or contract, or a qualified professional, before you rely on the result.
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