Adam Frankel
General Counsel · Technology & AI
15+ years as General Counsel to technology, cloud & AI companies
RESCISSION OF AN EMPLOYMENT AGREEMENT
THIS AGREEMENT IS MADE BETWEEN ____________________________ (hereinafter referred to as the Company), a company incorporated under the Indian Companies Act and with its Registered Office at ____________________ AND Mr. _______________________________ s/d/o ___________________________, (hereinafter referred to as the Employee). Both Parties together referred to as the Parties.
WHEREAS the Employee has been in the service of the Company for a period of _______ years, pursuant to an agreement executed between the parties hereto dated _______.
AND WHEREAS under clause 13 of the Agreement, it is stated that if the Employee commits misconduct, the Company may terminate the services of the Employee. As per the said clause, a notice was duly served on the Employee asking him for an explanation, or in the alternative to show cause as to why his services should not be terminated. The Employee has not replied to the said notice with a satisfactory explanation, and the period of notice has ended.
NOW IT IS AGREED BETWEEN THE PARTIES AS FOLLOWS:
The employment of the Employee with the Company under the Agreement shall cease from the date hereof, and from the same date all provisions of the Agreement shall cease to be effective.
In consideration of the sum of Rs. ____________ paid by the Company to the Employee (receipt of which the Employee hereby acknowledges), the Employee releases the Company from all claims and demands under the said agreement, whether relating to salary, allowance, compensation, damages or otherwise.
The Employee shall, on or before the ________ day of _________, hand over possession of the quarters occupied by him under the said agreement; and if he defaults, he shall pay the Company, as liquidated damages, the sum of Rs. ____ for every day after that date during which he keeps possession thereof.
IN WITNESS WHEREOF, the parties have executed this agreement on the date set forth above.
For the Company
Signature: _______________
Name: _______________
Designation: _______________
The Employee
Signature: _______________
Name: _______________
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About this template
What is this template?
This document is a formal agreement to end an employment relationship specifically citing a prior misconduct notice and the expiry of a show-cause period. It is not a standard resignation letter; it contains a specific financial release and a penalty clause for failing to vacate company quarters.
When should you use it?
Use this template when an employee has failed to provide a satisfactory explanation for misconduct and both parties want to settle all dues and housing issues. Use a Settlement Agreement instead if the termination is for redundancy or mutual convenience without a misconduct background.
What's inside
| Clause | Name | What it does |
|---|---|---|
| First operative clause | Termination of Agreement | Ceases the employment relationship and renders all provisions of the original agreement ineffective from the date of this document. |
| Second operative clause | Release of Claims | Releases the Company from all claims for salary, allowances, and damages in exchange for a specific sum paid in Rupees. |
| Third operative clause | Vacation of Quarters | Obliges the Employee to hand over company quarters by a specific date or pay daily liquidated damages in Rupees. |
Who it's for
- an Indian company terminating an employee for misconduct after a show cause notice period has expired
- an employer requiring an employee to vacate company housing as part of a termination settlement
- an employee accepting a final settlement payment in exchange for waiving all future claims against the employer
How long it runs and how it's signed
How long
Used once
Signed by
Company Representative, Employee
Witness
Not required
Notarisation
Not required
Law it's drafted under
Governed by
Indian Companies Act
Categories
Jurisdiction
India
Document info
GitLaw document. Document created on Fri Jun 26th, 2026. Last updated on Mon Jun 29th, 2026.
This document is public
Licensed under CC BY 4.0 (Attribution).
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