SEVERANCE AGREEMENT
THIS SEVERANCE AGREEMENT (“Agreement”) is made and entered into on [Date], by and between:
[Employer Name], a [Type of Entity, e.g., corporation, LLC] organized under the laws of [State/Country], with its principal place of business at [Employer Address] (“Employer”);
AND
[Employee Name], residing at [Employee Address] (“Employee”).
RECITALS
WHEREAS, Employee’s employment with Employer will terminate effective [Separation Date] (“Separation Date”);
WHEREAS, Employer and Employee wish to resolve all matters between them in connection with Employee’s employment and separation;
NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, the parties agree as follows:
1. SEPARATION OF EMPLOYMENT
1.1 Employee’s employment with Employer will end effective as of the Separation Date.
1.2 Employee acknowledges receipt of all wages, salary, and accrued benefits through the Separation Date, except as expressly provided in this Agreement.
2. SEVERANCE PAYMENT
2.1 In exchange for the promises made herein, Employer agrees to pay Employee a severance payment in the amount of [Severance Amount], less all applicable taxes and withholdings (“Severance Payment”).
2.2 The Severance Payment will be paid to Employee in [lump sum/installments] on or before [Payment Date/Payment Schedule].
3. BENEFITS
3.1 [Describe any continuation of benefits, such as health insurance, COBRA information, or other benefits, including duration and terms, or state “No additional benefits will be provided beyond those required by law.”]
4. RELEASE OF CLAIMS
4.1 In exchange for the Severance Payment and other consideration, Employee hereby fully releases and discharges Employer and its affiliates, officers, directors, employees, agents, and successors from any and all claims, demands, or causes of action, known or unknown, arising out of or relating to Employee’s employment or termination up to the date of this Agreement.
4.2 This release includes, but is not limited to, claims under federal, state, and local laws relating to employment, discrimination, wages, benefits, and termination.
4.3 This release does not waive claims that cannot be waived by law, including claims for unemployment insurance or workers’ compensation.
5. CONFIDENTIALITY
5.1 Employee agrees to keep the terms and existence of this Agreement confidential, except as required by law or as necessary to obtain legal or financial advice.
6. NON-DISPARAGEMENT
6.1 Employee agrees not to make any false, negative, or disparaging statements about Employer or its employees, officers, or business.
7. RETURN OF EMPLOYER PROPERTY
7.1 Employee agrees to return all Employer property, including keys, documents, devices, and confidential information, by [Return Date].
8. NON-ADMISSION
8.1 This Agreement does not constitute an admission of liability or wrongdoing by Employer.
9. GOVERNING LAW
9.1 This Agreement shall be governed by and construed in accordance with the laws of [Governing Law State/Country], without regard to its conflict of law provisions.
10. ENTIRE AGREEMENT
10.1 This Agreement constitutes the entire agreement between the parties regarding the subject matter herein and supersedes all prior agreements or understandings, whether written or oral.
11. AMENDMENTS
11.1 No amendment or modification of this Agreement shall be valid unless made in writing and signed by both parties.
12. VOLUNTARY AGREEMENT
12.1 Employee acknowledges that Employee has read and understands this Agreement, has had the opportunity to consult with legal counsel, and signs this Agreement voluntarily.
13. SEVERABILITY
13.1 If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions will remain in full force and effect.
14. EFFECTIVE DATE
14.1 This Agreement will become effective on the date it is signed by both parties (“Effective Date”).
Disclaimer
This document is a template and may not be suitable for all situations. The parties should consult with legal counsel before signing this agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Severance Agreement as of the dates written below.
[Employer Name]
By: _______________________________
Name: [Name]
Title: [Title]
Date: _____________________________
[Employee Name]
Signature: _________________________
Date: _____________________________
