Employment Severance Agreement

Bahman Eslamboly

Form reviewed by Bahman Eslamboly, Attorney at FindLegalForms

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A Severance Agreement details the mutual agreement between an employer and employee in which employee’s relationship with employer is severed. This agreement sets out the specific terms of the agreement including the date of termination, obligations the company agrees to fulfill and any severance bonus employee will receive. It also sets out the specifics regarding continuing insurance coverage and employee’s waiver of any claims against the company. It is imperative that a Severance Agreement is set out in writing rather than by oral representation. A well-written Severance Agreement will prove invaluable in the event there are misunderstandings between the parties regarding the termination of employment.

This Severance Agreement contains the following important provisions:
  • Parties: Sets out the names of the employer and employee, type of entity and date of agreement;
  • Termination Date: Specific date of termination of employment;
  • Existing Company Obligations: Detailed obligations of company including payment of salary, reimbursement of expenses and accrued vacation and sick time;
  • Employee Obligations: Existing obligations of employee including return of all company property (cell phone, computer, software, computer files and confidential information) which are set out in detail on a schedule to this agreement;
  • Severance Bonus/Health Insurance: Amount of any severance bonus due employee and eligibility of continuing health benefits;
  • Release/Waiver of Claims: Employee releases company from all claims and causes of action and waives any rights or claims under the Age Discrimination in Employment Act;
  • Non-Solicitation: Employee agrees not to solicit any company employee for at least one year from the date of this agreement;
  • Confidentiality: Neither employer nor employee will disclose any terms or conditions set out under this Severance Agreement except to those specifically listed, i.e., spouse or attorney;
  • Signatures: Both employer and employee must sign and date this Severance Agreement.

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This attorney-prepared packet contains:
  1. General Information
  2. Step-by-Step Instructions
  3. Severance Agreement
State Law Compliance: This form complies with the laws of all states

Employment Severance Agreement

Product Details

Product Employment Severance Agreement
Country United States
Pages 10
Dimensions Designed for Letter Size (8.5" x 11")
Printer compatibility Designed to print on all ink-jet and laser printers
Editable Yes (.doc, .wpd and .rtf)
Format Microsoft Word
Adobe PDF
WordPerfect
Rich Text Format
Platform Windows Compatible
Mac Compatible
Linux Compatible
Availability In Stock. Instant Download
Usage Unlimited number of prints
Category Severance & Termination Agreements
Product number #28145
Download time Less than 1 minute (approx.)
Document Access Via secret online address
Email with download links
Email with attachment upon request
Refund Policy 60 days, no-questions asked, 100% money back guarantee

Frequently Asked Questions

An Employment Severance Agreement is a legal document that outlines the terms of an employee's separation from their employer. It details the obligations of both parties, including severance pay, health insurance coverage, and any waivers of claims.

Having a written Severance Agreement is crucial as it provides clear documentation of the terms agreed upon by both the employer and employee. This can help prevent misunderstandings and disputes regarding the termination of employment.

A Severance Agreement should include the parties involved, the termination date, existing obligations of both the employer and employee, details about severance pay, health insurance coverage, and any confidentiality or non-solicitation clauses.

Yes, employees can negotiate the terms of their Severance Agreement before signing. It is advisable to discuss any concerns or desired changes with the employer to reach a mutually agreeable solution.

If you choose not to sign the Severance Agreement, you may forfeit any severance pay or benefits outlined in the agreement. It is important to understand the implications of not signing before making a decision.

Is This Form Right For You?

Use This Form If:

  • Individuals who are being laid off or terminated may require a severance agreement to ensure they receive any owed severance pay and benefits. This document outlines the terms of their separation from the company, providing clarity on what they are entitled to after their employment ends.
  • Situations requiring a formalized separation between an employer and employee often arise during downsizing or restructuring. A severance agreement can help both parties understand their rights and obligations, reducing the likelihood of disputes in the future.
  • To comply with legal standards, employers may need to provide a severance agreement to employees who are leaving the company under specific circumstances. This ensures that the employer fulfills their obligations while protecting their interests against potential claims.
  • For those negotiating their exit from a company, having a severance agreement in place can provide peace of mind. It clearly sets out the terms of the departure, including any severance bonuses and health insurance benefits, which can be crucial for the employee's transition.
  • Employers looking to protect their business interests may utilize a severance agreement to include non-solicitation and confidentiality clauses. This helps prevent former employees from soliciting current employees or disclosing sensitive company information after their departure.

Do Not Use If:

  • – This form is not appropriate for employees who are being terminated for misconduct or violation of company policies. In such cases, the employer may not be obligated to provide severance benefits.
  • – If an employee is leaving voluntarily, such as resigning, a severance agreement may not be necessary. Instead, a resignation letter or exit interview may suffice for documentation.
  • – In situations where the employee is part of a union, a collective bargaining agreement may govern the terms of severance, making this individual agreement unnecessary.
  • – For employees who are being laid off without any severance pay or benefits, this form may not be applicable. It is essential to understand the specific circumstances surrounding the termination before using this agreement.
  • – If the employer is not willing to negotiate or provide any severance benefits, then a Severance Agreement may not serve its intended purpose and could be irrelevant.

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