21 Jul Sample Severance Agreement
A severance agreement is a legal document that outlines the terms and conditions of an employee`s departure from a company. It is typically offered to employees who are terminated without cause or who choose to resign due to a significant change in their job duties or other reasons. A sample severance agreement provides a general framework of what such an agreement contains, and can be useful for both employees and employers in understanding the key elements of a severance agreement.
The following are some of the typical provisions included in a severance agreement:
1. The reason for termination: This section outlines the reason for the employee`s departure from the company. It can include a general reference to the company`s desire to reduce workforce or specific reasons such as restructuring or downsizing.
2. Severance payment: This section defines the amount of money that the employee will receive upon termination. The amount typically varies based on the length of service, job title, salary, and other factors.
3. Benefits continuation: This section outlines which benefits the employee will continue to receive after termination, such as health insurance, retirement benefits, and other perks.
4. Non-disclosure and non-disparagement: This section outlines that the employee cannot share any confidential or proprietary information about the company and will not make any negative comments about the company, its employees, or products.
5. Release of claims: This section outlines that the employee agrees to release the company from any potential claims arising from their employment and termination. The employee also agrees not to file any lawsuits or take any legal action against the company.
6. References: This section outlines that the company will provide a reference to the employee if requested. The agreement usually includes standard language that the reference will only confirm the employee`s dates of employment and job title.
7. Return of company property: This section outlines that the employee must return all company property upon termination, including keys, laptops, phones, and other equipment.
Overall, a sample severance agreement serves as a useful starting point for both employees and employers in understanding the key elements and considerations of a severance agreement. However, it`s important to note that each agreement should be tailored to the specific circumstances of the termination and the parties involved.