What This Severance Agreement Template Covers

This severance agreement template provides a comprehensive framework for employers and employees to negotiate the terms of severance following termination of employment. It includes essential clauses such as Severance Terms, Release of Claims, and Confidentiality, ensuring that both parties understand their rights and obligations.

When to Use a Severance Contract

This severance contract is ideal for situations where an employee is being laid off or terminated, and both parties wish to clarify the terms of severance pay and any additional benefits. It is particularly useful when negotiating terms to prevent future disputes over severance benefits and claims.

What's Included in This Severance Agreement Template

• Parties: Clearly identifies the Employer and Employee, ensuring both parties are recognized in the agreement.
• Severance Terms: Outlines the severance pay amount, payment schedule, and any additional benefits the employee may receive.
• Release of Claims: This section acts as a release of claims form, detailing the rights being waived by the employee in exchange for severance benefits.
• Confidentiality: Ensures that all terms of the severance agreement remain confidential, protecting sensitive information from being disclosed.
• Non-Disparagement: Prohibits both parties from making negative statements about each other, which can help maintain professional reputations.
• Governing Law: Specifies the jurisdiction under which the agreement will be governed, providing clarity on legal enforcement.

Key Severance Agreement Provisions

• Severance Pay Agreement: This provision ensures that the employee receives their entitled severance pay, which can help ease the transition after termination.
• Employee Release Agreement: This critical clause protects the employer from future claims, providing peace of mind that the employee has waived their right to pursue legal action regarding their termination.
• Termination Agreement Template: Serves as a formal record of the terms agreed upon, which can be referenced in case of disputes.

Disclaimer: This template is for informational purposes only and does not constitute legal advice.