[{"data":1,"prerenderedAt":534},["ShallowReactive",2],{"document-severance-agreement-D525":3},{"document":4,"label":23,"preview":11,"thumb":24,"thumb600":25,"description":26,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":27,"breadcrumb":31,"related":39,"customDescModule":180,"customdescription":26,"mdFm":181,"mdProseHtml":533},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":15,"keywords":22},"SEVERANCE AGREEMENT This Severance Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [Employee NAME] (the \"Employee\"), an individual with his main address at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Employer\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] Whereas Employee is presently employed by Employer. Both parties are interested in an amicable severance of their employer/employee relationship. We therefore make the following agreement: In consideration of Employee signing of this agreement and the attached letter of resignation, [his or her] employment will voluntarily end effective [date], Employer agrees to pay [Amount] to Employee on signing this agreement and the letter of resignation and delivering those funds to Employee by [Date and time]. The payment made under to Paragraph 1 will be subject to normal withholding for applicable taxes. Employee agrees not to discuss the terms of this agreement with anyone except [his or her] legal and financial counsel. Employee violation of this part of the agreement will require the forfeiture of all monies paid to [him or her] by [YOUR COMPANY NAME]. Employee agrees to return to Employer any company property, documents or copies of company documents or other confidential information presently in [his or her] possession. Employee understands that the failure to do so could result in prosecution.",null,"Severance Agreement","2",34,"doc","https://templates.business-in-a-box.com/imgs/1000px/severance-agreement-D525.png","https://templates.business-in-a-box.com/imgs/250px/525.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#525.xml",{"title":6,"description":6},[16,19],{"label":17,"url":18},"Human Resources","/templates/human-resources/",{"label":20,"url":21},"Employee Termination","/templates/employee-termination/","severance agreement","Severance Agreement Template","https://templates.business-in-a-box.com/imgs/400px/525.png","https://templates.business-in-a-box.com/imgs/600px/525.png","\u003Ch4>Understanding a Severance Agreement\u003C/h4>\n\u003Cp>\u003Cem>\u003Ca href=\"#key-components-severance-agreement\">View the key components of a Severance Agreement\u003C/a>\u003C/em>\u003C/p>\n\u003Cp>For business owners, managing employee separation is as crucial as any other aspect of human resources.\u003C/p>\n\u003Cp>A Severance Agreement template can be an invaluable asset in this process. It not only ensures a smooth transition for both the employee and the company but also minimizes potential legal risks and maintains a positive company reputation. Utilizing a template for your Severance Agreements streamlines the process, making it more efficient and consistent.\u003C/p>\n\u003Ch5>What is a Severance Agreement?\u003C/h5>\n\u003Cp>A Severance Agreement template is a formal document that outlines the terms and conditions agreed upon between an employer and an employee at the end of their employment.\u003C/p>\n\u003Cp>This agreement typically includes details of any severance pay and benefits the employee will receive, along with various legal stipulations such as confidentiality and non-disparagement clauses. It serves as a mutual understanding for a clear and respectful end to the employment relationship, protecting the interests of both parties.\u003C/p>\n\u003Cp>\u003Ch5 id=\"key-components-severance-agreement\">Key Elements of a Severance Agreement Template\u003C/h5> A comprehensive Severance Agreement template should include:\u003C/p>\n\u003Cul>\n\u003Cli>\u003Cstrong>Severance Pay Details\u003C/strong> - Specifies the amount of severance pay and how it will be disbursed.\u003C/li>\n\u003Cli>\u003Cstrong>Benefits Information\u003C/strong> - Outlines any continuation of benefits, such as health insurance or retirement funds.\u003C/li>\n\u003Cli>\u003Cstrong>Release of Claims\u003C/strong> - A clause where the employee agrees not to pursue legal action against the employer in the future.\u003C/li>\n\u003Cli>\u003Cstrong>Confidentiality Agreement\u003C/strong> - Stipulates that the terms of the severance, as well as any proprietary information, remain confidential.\u003C/li>\n\u003Cli>\u003Cstrong>Non-Disparagement Clause\u003C/strong> - Ensures that both parties agree not to make damaging statements about each other.\u003C/li>\n\u003Cli>\u003Cstrong>Return of Company Property\u003C/strong> - Details the responsibility of the employee to return any company-owned equipment or materials.\u003C/li>\n\u003Cli>\u003Cstrong>Legal Compliance\u003C/strong> - Ensures that the agreement complies with all relevant employment laws.\u003C/li>\n\u003C/ul>\n\u003Ch5>Other Documents Related to a Severance Agreement\u003C/h5>\n\u003Cp>When drafting a Severance Agreement, it's essential to consider related documents such as:\u003C/p>\n\u003Cul>\n\u003Cli>\u003Cstrong>\u003Ca href=\"https://www.business-in-a-box.com/template/employee-handbook-D712/\">Employee Handbook\u003C/a>\u003C/strong> - To ensure consistency with \u003Ca href=\"https://www.business-in-a-box.com/templates/company-policies/\">company policies\u003C/a>.\u003C/li>\n\u003Cli>\u003Cstrong>Final Paycheck Acknowledgment\u003C/strong> - To document the final payments made to the employee.\u003C/li>\n\u003Cli>\u003Cstrong>\u003Ca href=\"https://www.business-in-a-box.com/template/non-disclosure-agreement-nda-D12692/\">Non-Disclosure Agreements (NDAs)\u003C/a>\u003C/strong> - For employees who had access to confidential information.\u003C/li>\n\u003Cli>\u003Cstrong>\u003Ca href=\"https://www.business-in-a-box.com/template/employee-dismissal-letter-D508/\">Employment Termination Letter\u003C/a>\u003C/strong> - Official documentation of the employment termination.\u003C/li>\n\u003C/ul>\n\u003Ch5>Why Use Business in a Box for Your Severance Agreement?\u003C/h5>\n\u003Cp>For over two decades, Business in a Box has been the go-to resource for business owners seeking reliable and professionally crafted legal and business templates. Over the last 20 years, we’ve served millions of entrepreneurs, business owners, CEOs, and managers, in over 190 countries and territories worldwide.\u003C/p>\n\u003Cp>Our extensive library features over 3,000 business and legal documents, and has been developed through a collaboration with industry experts and lawyers.\u003C/p>\n\u003Cp>Business in a Box offers a user-friendly solution for crafting your Severance Agreement with several advantages:\u003C/p>\n\u003Cul>\n\u003Cli>\u003Cstrong>Professionally Designed Templates\u003C/strong> - Ensure that your agreement is comprehensive and legally sound.\u003C/li>\n\u003Cli>\u003Cstrong>Customizability\u003C/strong> - Tailor the template to suit the specific needs of your business and the individual circumstances of each employee separation.\u003C/li>\n\u003Cli>\u003Cstrong>Time-Saving\u003C/strong> - Streamlines the document creation process, allowing you to focus on other aspects of your business.\u003C/li>\n\u003Cli>\u003Cstrong>Legal Compliance\u003C/strong> - Templates are designed to be in line with current employment laws, reducing the risk of legal issues.\u003C/li>\n\u003C/ul>\n\u003Cp>By using Business in a Box for your Severance Agreement needs, you ensure a professional, fair, and legally compliant approach to managing employee separations. This not only protects your business but also maintains its integrity and reputation in the eyes of both current and future employees.\u003C/p>\n\u003Cp>Updated in November 2023\u003C/p>\n",[28,16,19],{"label":29,"url":30},"Templates","/templates/",[32,33,36],{"label":29,"url":30},{"label":34,"url":35},"Legal Agreements","/templates/business-legal-agreements/",{"label":37,"url":38},"Transfers Terminations & Releases","/templates/transfers-terminations-and-releases/",[40,44,48,52,56,60,64,68,72,76,80,84,88,107,120,135,150,163],{"label":41,"url":42,"thumb":43,"extension":10},"California Severance Agreement","/template/california-severance-agreement-D13912","https://templates.business-in-a-box.com/imgs/250px/13912.png",{"label":45,"url":46,"thumb":47,"extension":10},"Severance Agreement (over 40)","/template/severance-agreement-over-40-D12862","https://templates.business-in-a-box.com/imgs/250px/12862.png",{"label":49,"url":50,"thumb":51,"extension":10},"Severance Pay Agreement","/template/severance-pay-agreement-D12863","https://templates.business-in-a-box.com/imgs/250px/12863.png",{"label":53,"url":54,"thumb":55,"extension":10},"Termination Agreement","/template/termination-agreement-D13787","https://templates.business-in-a-box.com/imgs/250px/13787.png",{"label":57,"url":58,"thumb":59,"extension":10},"Separation Agreement","/template/separation-agreement-D13184","https://templates.business-in-a-box.com/imgs/250px/13184.png",{"label":61,"url":62,"thumb":63,"extension":10},"Employee Separation Agreement","/template/employee-separation-agreement-D12842","https://templates.business-in-a-box.com/imgs/250px/12842.png",{"label":65,"url":66,"thumb":67,"extension":10},"Job Separation Agreement","/template/job-separation-agreement-D13995","https://templates.business-in-a-box.com/imgs/250px/13995.png",{"label":69,"url":70,"thumb":71,"extension":10},"Termination Of Agreement and Release","/template/termination-of-agreement-and-release-D13286","https://templates.business-in-a-box.com/imgs/250px/13286.png",{"label":73,"url":74,"thumb":75,"extension":10},"Mutual Termination of Contract","/template/mutual-termination-of-contract-D513","https://templates.business-in-a-box.com/imgs/250px/513.png",{"label":77,"url":78,"thumb":79,"extension":10},"Separation and Release Agreement","/template/separation-and-release-agreement-D524","https://templates.business-in-a-box.com/imgs/250px/524.png",{"label":81,"url":82,"thumb":83,"extension":10},"Notice of Cancellation of Contract","/template/notice-of-cancellation-of-contract-D450","https://templates.business-in-a-box.com/imgs/250px/450.png",{"label":85,"url":86,"thumb":87,"extension":10},"Termination of Distribution Agreement","/template/termination-of-distribution-agreement-D1257","https://templates.business-in-a-box.com/imgs/250px/1257.png",{"description":89,"descriptionCustom":6,"label":90,"pages":91,"size":92,"extension":10,"preview":93,"thumb":94,"svgFrame":95,"seoMetadata":96,"parents":98,"keywords":97,"url":106},"EMPLOYMENT AGREEMENT - AT WILL EMPLOYEE This Employment Agreement for \"At Will\" Employee (the \"Agreement\") is made and effective this [DATE], BETWEEN: [EMPLOYEE NAME] (the \"Employee\"), an individual with his main address at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Corporation\"), an entity organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] RECITALS In consideration of the covenants and agreements herein contained and the moneys to be paid hereunder, the Corporation hereby employs the Employee and the Employee hereby agrees to perform services as an employee of the Corporation, on an \"at will\" basis, upon the following terms and conditions: APPOINTMENT The Employee is hereby employed by the Corporation to render such services and to perform such tasks as may be assigned by the Corporation. The Corporation may, in its sole discretion, increase or reduce the duties, or modify the title and job description, of the Employee from time to time, and any such increase, reduction or modification shall not be deemed a termination of this Agreement. ACCEPTANCE OF EMPLOYMENT Employee accepts employment with the Corporation upon the terms set forth above and agrees to devote all Employee's time, energy and ability to the interests of the Corporation, and to perform Employee's duties in an efficient, trustworthy and business-like manner. DEVOTION OF TIME TO EMPLOYMENT The Employee shall devote the Employee's best efforts and substantially all of the Employee's working time to performing the duties on behalf of the Corporation. The Employee shall provide services during the hours that are scheduled by the Corporation management. The Employee shall be prompt in reporting to work at the assigned time. NO CONFLICT OF INTEREST Employee shall not engage in any other business while employed by the Corporation. Employee shall not engage in any activity that conflicts with the Employees duties to the Corporation. Employee shall not provide any service or lend any aid or assistance to any party that competes with the services offered by the Corporation. Employee shall not provide any services to clients or prospective clients of the Corporation outside of the provision of services for the Corporation, whether such services are provided with or without compensation or remuneration. CORPORATION PROPERTY Employee acknowledges and agrees that while employed by the Corporation the Employee may be provided with use of computer equipment and other property of the Corporation. The use and possession of the such items shall be subject to any policies, requirements or restrictions established by the Corporation. Such items may only be used in performance of the Employee's duties for the corporation. On request of the Corporation, the Employee shall immediately deliver any such items to the Corporation. Upon termination of employment, Employee shall have the affirmative duty to return any such item to the Corporation whether a request is made or not. The obligation to return Corporation property shall extend and include any and all work product, client property, proprietary rights, intangible property, and all other property of the corporation regardless of the form or medium. COMPENSATION The Corporation shall pay the Employee such hourly compensation as determined by the Corporation. Payment shall be at the same time as the Corporations usual payroll to other employees. BONUS & BENEFITS Payment of any bonuses shall be at the complete discretion of the Corporation. No guarantee or representation that any bonuses will be paid has been made to the Employee. Standard benefits that are provided to other non-management employees shall be offered to the Employee, subject to the Corporation's policies and the terms and conditions of such benefits. WITHHOLDING All sums payable to Employee under this Agreement will be reduced by all federal, state, local, and other withholdings and similar taxes and payments required by applicable law. QUALIFICATIONS OF EMPLOYEE The employee shall satisfy all of the qualification that are established by the Corporation. TERM OF AGREEMENT There shall be no guaranteed term of employment. Employer acknowledges and agrees that Employee shall be an \"At Will\" Employee and that Employee's employment may be terminated at any time by the Corporation, with or without cause. FEES FROM EMPLOYEE'S WORK The Corporation shall have exclusive authority to determine the fees, or a procedure for establishing the fees, to be charged to clients by the Corporation for services that are provided by the Employee. All sums paid to the Employee or the Corporation in the way of fees, in cash or in kind, or otherwise for services of the Employee, shall, except as otherwise specifically agreed by the Corporation, be and remain the property of the Corporation and shall be included in the Corporation's name in such checking account or accounts as the Corporation may from time to time designate. CLIENTS AND CLIENT RECORDS The Corporation shall have the authority to determine who will be accepted as clients of the Corporation, and the Employee recognizes that such clients accepted are clients of the Corporation and not the Employee. All client records and files of any type concerning clients of the Corporation shall belong to and remain the property of the Corporation, notwithstanding the subsequent termination of the employment. POLICIES AND PROCEDURES The Corporation shall have the authority to establish from time to time the policies and procedures to be followed by the Employee in performing services for the Corporation. This may include, but is not necessarily limited to, employment policies, computer use policies, Internet access policies, email policies, and all other policies, procedures, directives, and mandates established by the Corporation, whether or not in written form or formally adopted. Employee shall abide by the provisions of any contract entered into by the Corporation under which the Employee provides services. Employee shall comply with the terms and conditions of any and all contracts entered by the Corporation. TERMINATION Employee acknowledges and agrees that Employee is an \"at will\" employee of the Corporation. As such, no term of employment is created hereby and employee may be terminated at any time in the sole discretion of the Corporation, whether there exists any cause for termination or not. CREATIONS AND INVENTIONS Employee acknowledges and agrees that any and all work product of the Employee that is conceived or created during the Employee's employment with the Corporation is the exclusive property of the Corporation. This shall include any and all copyrights, trade secrets, confidential information, patents, trademarks, trade dress, ideas, concepts, plans, business plans, business concepts, techniques, inventions, drawings, artwork, logos, graphics, web pages, databases, software, programs, CGI's, plug ins, applications, brochures, inventions, marketing plans and concepts, and all other ideas and work product of the Employee. The Employee acknowledges and agrees that all creations shall be \"works made for hire\" as defined in the [ACT OR CODE]. Notwithstanding the fact that this material may be considered to be a work made for hire, Employee agrees, during Employee's employment and thereafter, which covenant shall survive any termination of the employment relationship, to execute any and all documents requested by the Corporation to confirm the Corporation's ownership and control of all such material, including but not limited to assignments of copyright, confirmations of work for hire status, waivers of proprietary rights, copyright application, and any other documents requested by Corporation. RESTRICTIVE COVENANTS","Employment Agreement_At Will Employee","7",513,"https://templates.business-in-a-box.com/imgs/1000px/employment-agreement_at-will-employee-D541.png","https://templates.business-in-a-box.com/imgs/250px/541.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#541.xml",{"title":97,"description":6},"employment agreement_at will employee",[99,101,104],{"label":17,"url":100},"human-resources",{"label":102,"url":103},"Hire an Employee","hire-employee",{"label":34,"url":105},"business-legal-agreements","/template/employment-agreement_at-will-employee-D541",{"description":108,"descriptionCustom":6,"label":109,"pages":8,"size":92,"extension":10,"preview":110,"thumb":111,"svgFrame":112,"seoMetadata":113,"parents":115,"keywords":114,"url":119},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: Termination of your employment Dear [Contact name], We regret to inform you that your employment with [YOUR COMPANY NAME] is terminated effective upon receipt of this letter for the following reason(s): [DETAIL REASONS] [DETAIL REASONS] [DETAIL REASONS] Please vacate the premises immediately with your personal possessions. We will forward your salary earned to date in due course together with any vacation pay to which you are entitled. Within [NUMBER] days of termination we shall issue you a statement of accrued benefits. Any insurance benefits shall continue in accordance with applicable law and/or provisions of our personnel policy. Please contact [Name], at your earliest convenience, who will explain each of these items and arrange with you for the return of any company property. Sincerely, [YOUR NAME] [YOUR TITLE] [YOUR PHONE NUMBER] [YOUREMAIL@YOURCOMPANY.COM] [IF SENT BY EMAIL YOU MAY INCLUDE THIS NOTICE]","Employee Dismissal Letter","https://templates.business-in-a-box.com/imgs/1000px/employee-dismissal-letter-D508.png","https://templates.business-in-a-box.com/imgs/250px/508.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#508.xml",{"title":114,"description":6},"employee dismissal letter",[116,117],{"label":17,"url":100},{"label":20,"url":118},"employee-termination","/template/employee-dismissal-letter-D508",{"description":121,"descriptionCustom":6,"label":122,"pages":123,"size":92,"extension":10,"preview":124,"thumb":125,"svgFrame":126,"seoMetadata":127,"parents":129,"keywords":128,"url":134},"NON-DISCLOSURE AGREEMENT (NDA) This Non-Disclosure Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Disclosing Party\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [RECEIVING PARTY NAME] (the \"Receiving Party\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS, Receiving Party has been or will be engaged in the performance of work on [DESCRIBE]; and in connection therewith will be given access to certain confidential and proprietary information; and WHEREAS, Receiving Party and Disclosing Party wish to evidence by this Agreement the manner in which said confidential and proprietary material will be treated. NOW, THEREFORE, it is agreed as follows: NON-DISCLOSURE OF CONFIDENTIAL INFORMATION Both Parties understand and agree that each Party may have access to the confidential information of the other party. For the purposes of this Agreement, \"Confidential Information\" means proprietary and confidential information about the Disclosing Party's (or it's suppliers') business or activities. Such information includes all business, financial, technical, and other information marked or designated by such Party as \"confidential\" or \"proprietary.\" Confidential Information also includes information which, by the nature of the circumstances surrounding the disclosure, ought in good faith to be treated as confidential. For the purposes of this Agreement, Confidential Information does not include: Information that is currently in the public domain or that enters the public domain after the signing of this Agreement. Information a Party lawfully receives from a third Party without restriction on disclosure and without breach of a non-disclosure obligation. Information that the Receiving Party knew prior to receiving any Confidential Information from the Disclosing Party. Information that the Receiving Party independently develops without reliance on any Confidential Information from the Disclosing Party. Each Party agrees that it will not disclose to any third Party or use any Confidential Information disclosed to it by the other Party except when expressly permitted in writing by the other Party. Each Party also agrees that it will take all reasonable measures to maintain the confidentiality of all Confidential Information of the other Party in its possession or control. TERM The term of this Agreement is [number] of [years/months] from the date of execution by both Parties. TITLE The Receiving Party agrees that all Confidential Information furnished by the Disclosing Party shall remain the sole property of the Disclosing Party. DISCLAIMER","Non Disclosure Agreement Nda","3","https://templates.business-in-a-box.com/imgs/1000px/non-disclosure-agreement-nda-D12692.png","https://templates.business-in-a-box.com/imgs/250px/12692.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12692.xml",{"title":128,"description":6},"non disclosure agreement nda",[130,131],{"label":34,"url":105},{"label":132,"url":133},"Confidentiality Agreements","confidentiality-agreement","/template/non-disclosure-agreement-nda-D12692",{"description":136,"descriptionCustom":6,"label":137,"pages":138,"size":139,"extension":10,"preview":140,"thumb":141,"svgFrame":142,"seoMetadata":143,"parents":144,"keywords":148,"url":149},"EMPLOYMENT AGREEMENT FOR AN EXECUTIVE This Employment Agreement for an Executive (the \"Agreement\") is made and effective this [Date], BETWEEN: [EXECUTIVE NAME] (the \"Executive\"), an individual with his main address at: AND: [COMPANY NAME] (the \"Company\"), an entity organized and existing under the laws of the [STATE/PROVINCE], with its head office located at: Recitals In consideration of the covenants and agreements herein contained and the moneys to be paid hereunder, the Company hereby employs the Executive and the Executive hereby agrees to perform services as an Executive of the Company, upon the following terms and conditions: TERM The Company hereby employs Executive to serve as [position] and to serve in such additional or different position or positions as the Company may determine in its sole discretion. The term of employment shall be for a period of [NUMBER] years (\"Employment Period\") to commence on [DATE], unless earlier terminated as set forth herein. The effective date of this Agreement shall be the date first set forth above, and it shall continue in effect until the earlier of: The effective date of any subsequent employment agreement between the Company and the Executive; The effective date of any termination of employment as provided elsewhere herein; or [NUMBER] year(s) from the effective date hereof, provided, that this Employment Agreement shall automatically renew for successive periods of [NUMBER] years each unless either party gives written notice to other that it does not wish to automatically renew this Agreement, which written notice must be received by the other party no less than [NUMBER] days and no more than [NUMBER] days prior to the expiration of the applicable term. Duties and Responsibilities Executive will be reporting to [IDENTIFY]. Within the limitations established by the By-laws of the Company, the Executive shall have each and all of the duties and responsibilities of that position and such other or different duties on behalf of the Company, as may be assigned from time to time by [identify what person or body may assign additional responsibilities]. Location The initial principal location at which Executive shall perform services for the Company shall be [location]. Acceptance of Employment Executive accepts employment with the Company upon the terms set forth above and agrees to devote all Executive's time, energy and ability to the interests of the Company, and to perform Executive's duties in an efficient, trustworthy and business-like manner. Devotion of Time to Employment The Executive shall devote the Executive's best efforts and substantially all of the Executive's working time to performing the duties on behalf of the Company. The Executive shall provide services during the normal business hours of the Company as determined by the Company. Reasonable amounts of time may be allotted to personal or outside business, charitable and professional activities and shall not constitute a violation of this Agreement provided such activities do not materially interfere with the services required to be rendered hereunder. QUALIFICATIONS The Executive shall, as a condition of this Agreement, satisfy all of the qualification that are reasonably and in good faith established by the Board of Directors. Compensation Base Salary Executive shall be paid a base salary (\"Base Salary\") at the annual rate of [salary], payable in bi-weekly installments consistent with Company's payroll practices. The annual Base Salary shall be reviewed on or before [DATE] of each year, unless Executive's employment hereunder shall have been terminated earlier pursuant to this Agreement, starting on [agreed upon date] by the Board of Directors of the Company to determine if such Base Salary should be increased for the following year in recognition of services to the Company. In consideration of the services under this Agreement, Executive shall be paid the aggregate of basic compensation, bonus and benefits as hereinafter set forth. Payment Payment of all compensation to Executive hereunder shall be made in accordance with the relevant Company policies in effect from time to time, including normal payroll practices. Bonus From time to time, the Company may pay to Executive a bonus out of net revenues of the Company. Payment of any bonus compensation shall be at the sole discretion of the Board of Directors or the Executive committee of the Board of Directors and the Executive shall have no entitlement to such amount absent a decision by the Company as aforesaid to make such bonus compensation. Executive shall also be entitled to a bonus determined as follows: [DESCRIBE] Benefits The Company shall provide Executive with such benefits as are provided to other senior management Of the Company. Benefits shall include at a minimum (i) paid vacation of [NUMBER] days per year, at such times as approved by the Board of Directors, (ii) health insurance coverage under the same terms as offered to other Executives of the Company, (iii) retirement and profit sharing programs as offered to other Executives of the Company, (iv) paid holidays as per the Company's policies, and (v) such other benefits and perquisites as are approved by the Board of Directors. The Company has the right to modify conditions of participation, terminate any benefit, or change insurance plans and other providers of such benefits in its sole discretion. The Executive shall be reimbursed for out of pocket expenses that are pre-approved by the Company, subject to the Company's policies and procedures therefore, and only for such items that are a necessary and integral part of the Executive's job functions. NonDeductible Compensation In the event a deduction shall be disallowed by the Internal Revenue Service or a court of competent jurisdiction for federal income tax purposes for all or any part of the payment made to Executive by the Company or any other shareholder or Executive of the Company, shall be required by the Internal Revenue Service to pay a deficiency on account of such disallowance, then Executive shall repay to the Company or such other individual required to make such payment, an amount equal to the tax imposed on the disallowed portion of such payment, plus any and all interest and penalties paid with respect thereto. The Company or other party required to make payment shall not be required to defend any proposed disallowance or other action by the Internal Revenue Service or any other state, federal, or local taxing authorities. Withholding All sums payable to Executive under this Agreement will be reduced by all federal, state, local, and other withholdings and similar taxes and payments required by applicable law. Other Employment Benefits Business Expenses Upon submission of itemized expense statements in the manner specified by the Company, Executive shall be entitled to reimbursement for reasonable travel and other reasonable business expenses duly incurred by Executive in the performance of his duties under this Agreement. Benefit Plans Executive shall be entitled to participate in the Company's medical and dental plans, life and disability insurance plans and retirement plans pursuant to their terms and conditions. Executive shall be entitled to participate in any other benefit plan offered by the Company to its Executives during the term of this Agreement (other than stock option or stock incentive plans, which are governed by Section 3(d) below). Nothing in this Agreement shall preclude the Company or any affiliate of the Company from terminating or amending any Executive benefit plan or program from time to time. Vacation Executive shall be entitled to [agreed upon number of time] weeks of vacation each year of full employment, exclusive of legal holidays, as long as the scheduling of Executive's vacation does not interfere with the Company's normal business operations.","Employment Agreement Executive","12",97,"https://templates.business-in-a-box.com/imgs/1000px/employment-agreement_executive-D543.png","https://templates.business-in-a-box.com/imgs/250px/543.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#543.xml",{"title":6,"description":6},[145,146,147],{"label":17,"url":100},{"label":102,"url":103},{"label":34,"url":105},"employment agreement executive","/template/employment-agreement-executive-D543",{"description":151,"descriptionCustom":6,"label":152,"pages":153,"size":92,"extension":10,"preview":154,"thumb":155,"svgFrame":156,"seoMetadata":157,"parents":159,"keywords":158,"url":162},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: JOB OFFER FOR [DESCRIBE] Dear [CANDIDATE NAME]: Congratulations! [Company name] is excited to offer you the position of [job title] with an expected start date of [day, month, year] at a starting salary of [dollar amount] per [hour, year, etc.]. You can expect to receive payment [weekly, biweekly, monthly, etc.], starting on [date of first pay period]. We must wrap up a few more formalities, including the successful completion of your [background check, drug screening, reference check, etc.]. As the [job title], you will report to [manager/supervisor name and title] at [workplace location] from [hours of day, days of week]","Job Offer Letter Long","1","https://templates.business-in-a-box.com/imgs/1000px/job-offer-letter-long-D12769.png","https://templates.business-in-a-box.com/imgs/250px/12769.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12769.xml",{"title":158,"description":6},"job offer letter long",[160,161],{"label":17,"url":100},{"label":102,"url":103},"/template/job-offer-letter-long-D12769",{"description":164,"descriptionCustom":6,"label":165,"pages":153,"size":92,"extension":10,"preview":166,"thumb":167,"svgFrame":168,"seoMetadata":169,"parents":171,"keywords":170,"url":179},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: WARNING NOTICE Dear [Contact name], On [Date], at [Time], we met to discuss your unsatisfactory performance. Specifically, we identified the following as being unsatisfactory: [Describe] ","Warning Notice","https://templates.business-in-a-box.com/imgs/1000px/warning-notice-D622.png","https://templates.business-in-a-box.com/imgs/250px/622.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#622.xml",{"title":170,"description":6},"warning notice",[172,173,176],{"label":17,"url":100},{"label":174,"url":175},"Motivation & Appreciation","motivation-appreciation",{"label":177,"url":178},"Behavior & Discipline","employee-behavior-discipline","/template/warning-notice-D622",true,{"seo":182,"reviewer":194,"legal_disclaimer":180,"quick_facts":198,"at_a_glance":201,"personas":205,"variants":230,"glossary":257,"clauses":291,"how_to_fill":342,"common_mistakes":383,"faqs":408,"industries":436,"comparisons":461,"diy_vs_lawyer":477,"jurisdictions":490,"related_template_ids_curated":511,"schema":520,"classification":521},{"meta_title":183,"meta_description":184,"primary_keyword":185,"secondary_keywords":186},"Severance Agreement Template (Free Word)","Free severance agreement template covering separation pay, benefits, release of claims, and confidentiality. Used in 190+ countries. Free Word and PDF download.","severance agreement template",[187,188,189,190,191,192,193],"severance agreement template word","severance agreement template free","employee severance agreement","severance package agreement","termination severance agreement","severance agreement and release of claims","severance contract template",{"name":195,"credential":196,"reviewed_date":197},"Bruno Goulet","CEO, Business in a Box","2026-05-02",{"difficulty":199,"legal_review_recommended":180,"signature_required":180,"notarization_required":200},"advanced",false,{"what_it_is":202,"when_you_need_it":203,"whats_inside":204},"A Severance Agreement is a legally binding contract between an employer and a departing employee that sets out the terms of separation — including severance pay, continuation of benefits, and any post-employment restrictions — in exchange for the employee's release of legal claims against the company. This free Word download is editable online and exportable as PDF, covering all standard provisions in a single document ready for attorney review and execution.\n","Use it when separating an employee — whether through layoff, reduction in force, or negotiated departure — where you want a clean legal release of claims in exchange for severance compensation. It is also appropriate when an employee resigns under a negotiated arrangement or when a fixed-term contract ends and the parties agree to additional departure terms.\n","Separation date and final pay details, severance amount and payment schedule, benefits continuation terms, a mutual release of all employment-related claims, confidentiality and non-disparagement obligations, return of company property, and post-employment restrictions including non-compete and non-solicitation where applicable.\n",[206,210,214,218,222,226],{"title":207,"use_case":208,"icon_asset_id":209},"HR managers and directors","Standardizing layoff and RIF documentation across a workforce reduction","persona-hr-manager",{"title":211,"use_case":212,"icon_asset_id":213},"Small business owners","Separating an employee cleanly without an in-house legal team","persona-small-business-owner",{"title":215,"use_case":216,"icon_asset_id":217},"General counsel and employment attorneys","Drafting enforceable release agreements for executive departures","persona-general-counsel",{"title":219,"use_case":220,"icon_asset_id":221},"Startup founders","Handling a co-founder or early-hire separation with IP and equity implications","persona-startup-founder",{"title":223,"use_case":224,"icon_asset_id":225},"Operations directors","Managing department restructuring that requires multiple simultaneous separations","persona-operations-director",{"title":227,"use_case":228,"icon_asset_id":229},"Departing employees","Reviewing and negotiating terms before signing a company-issued severance offer","persona-employee",[231,235,238,241,245,249,253],{"situation":232,"recommended_template":233,"slug":234},"Laying off a non-executive employee as part of a reduction in force","Severance Agreement (Standard)","severance-agreement-D525",{"situation":236,"recommended_template":237,"slug":234},"Separating a C-suite or VP-level executive with equity and enhanced benefits","Executive Severance Agreement",{"situation":239,"recommended_template":240,"slug":234},"Separating an employee who is 40 or older under ADEA requirements","Severance Agreement with OWBPA Disclosures",{"situation":242,"recommended_template":243,"slug":244},"Conducting a group layoff involving 50 or more employees","WARN Act Compliant RIF Severance Package","severance-package-D13238",{"situation":246,"recommended_template":247,"slug":248},"Ending employment by mutual agreement with no severance payment","Mutual Separation Agreement","mutual-termination-of-contract-D513",{"situation":250,"recommended_template":251,"slug":252},"Settling an existing employment dispute or EEOC charge","Employment Settlement Agreement","settlement-agreement-D916",{"situation":254,"recommended_template":255,"slug":256},"Ending an independent contractor relationship","Contract Termination Agreement","termination-agreement-D13787",[258,261,264,267,270,273,276,279,282,285,288],{"term":259,"definition":260},"Release of Claims","A contractual provision in which the employee gives up the right to sue the employer for any employment-related legal claims arising before the separation date.",{"term":262,"definition":263},"Consideration","Something of value — typically severance pay or benefits continuation — that the employer provides in exchange for the employee's release, making the agreement legally binding.",{"term":265,"definition":266},"COBRA","A US federal law allowing departing employees to continue employer-sponsored health coverage for up to 18 months by paying the full premium themselves.",{"term":268,"definition":269},"ADEA (Age Discrimination in Employment Act)","A US federal law protecting workers 40 and older from age discrimination; severance agreements covering this group must include a 21-day review period and a 7-day revocation window.",{"term":271,"definition":272},"OWBPA (Older Workers Benefit Protection Act)","A US law setting specific disclosure and timing requirements that must be met before a release of ADEA claims is enforceable against employees aged 40 or older.",{"term":274,"definition":275},"Non-Disparagement Clause","A mutual or one-sided restriction prohibiting the parties from making negative public statements about each other after the separation.",{"term":277,"definition":278},"Clawback Provision","A clause requiring the employee to repay severance if they violate a post-separation obligation such as confidentiality, non-compete, or non-solicitation.",{"term":280,"definition":281},"Garden Leave","A notice period during which the employee is paid but required to stay away from the workplace and clients, typically used to protect confidential information and customer relationships.",{"term":283,"definition":284},"Separation Date","The official last day of employment stated in the agreement, which determines final pay, benefits cutoff, and the start of any post-employment restriction periods.",{"term":286,"definition":287},"Pay in Lieu of Notice","A lump-sum payment equal to the salary the employee would have earned during a required notice period, used when the employer waives the working notice period.",{"term":289,"definition":290},"Net Operating Period","The window between the separation date and the date severance payments end, during which the employee typically cannot collect unemployment benefits in some jurisdictions.",[292,297,302,307,312,317,322,327,332,337],{"name":293,"plain_english":294,"sample_language":295,"common_mistake":296},"Parties and separation date","Identifies the employer and employee as legal entities and states the official last day of employment.","This Severance Agreement is entered into as of [DATE] by and between [EMPLOYER LEGAL NAME], a [STATE] [ENTITY TYPE] ('Company'), and [EMPLOYEE FULL NAME] ('Employee'). Employee's last day of employment is [SEPARATION DATE].","Using the employer's trade name instead of its registered legal entity name — this can complicate enforcement and create ambiguity about which entity is bound by the release.",{"name":298,"plain_english":299,"sample_language":300,"common_mistake":301},"Severance pay and payment schedule","States the total severance amount, how it will be paid (lump sum or installments), the payment dates, and that payment is contingent on the agreement becoming effective.","Provided this Agreement becomes effective and Employee has not revoked it, Company shall pay Employee severance of $[AMOUNT], less applicable withholdings, in [a lump sum on / equal installments beginning] [DATE(S)], corresponding to [X] weeks of base salary.","Failing to condition payment on the agreement becoming irrevocable — paying before the revocation window closes means the employer has provided consideration without a binding release.",{"name":303,"plain_english":304,"sample_language":305,"common_mistake":306},"Benefits continuation","Describes any continued health, dental, or vision coverage after separation, including whether the employer will subsidize COBRA premiums and for how long.","Company will pay the employer portion of Employee's health insurance premiums under COBRA for [X] months following the Separation Date, after which Employee is responsible for the full premium to maintain coverage.","Promising specific benefits continuation terms that conflict with the employer's actual plan documents — insurance carriers control COBRA eligibility, and over-promising here creates breach exposure.",{"name":308,"plain_english":309,"sample_language":310,"common_mistake":311},"General release of claims","The employee releases all known and unknown employment-related legal claims against the employer — the core provision that makes the severance payment worthwhile to the employer.","Employee unconditionally releases and forever discharges the Company, its officers, directors, employees, and successors from any and all claims, known or unknown, arising out of or related to Employee's employment or separation through the date of this Agreement, including but not limited to claims under [TITLE VII / ADEA / ADA / applicable state law].","Using a release that attempts to cover future claims or claims that cannot legally be waived — such as EEOC charges, NLRA rights, or workers' compensation claims — which can void the entire release in some jurisdictions.",{"name":313,"plain_english":314,"sample_language":315,"common_mistake":316},"ADEA and OWBPA compliance language","For employees aged 40 or older, includes the mandatory disclosures, the 21-day review period, and the 7-day revocation right required to make the ADEA waiver enforceable.","Employee acknowledges that: (a) this Agreement specifically releases claims under the ADEA; (b) Employee has 21 days to consider this Agreement; (c) Employee may revoke this Agreement within 7 days of signing by written notice to [HR CONTACT / EMAIL]; and (d) Employee is advised to consult an attorney.","Using a single generic release template for all employees regardless of age — omitting OWBPA disclosures for employees 40 and over renders the ADEA release unenforceable, exposing the company to age discrimination claims.",{"name":318,"plain_english":319,"sample_language":320,"common_mistake":321},"Confidentiality and non-disparagement","Prohibits both parties from disclosing the terms of the agreement or making negative statements about each other after separation.","Employee agrees to keep the terms of this Agreement confidential and not to disclose them to any third party except Employee's attorneys, financial advisors, or immediate family on a need-to-know basis. Neither party shall make disparaging statements about the other to third parties.","Making non-disparagement one-sided (binding only the employee) without disclosing this asymmetry clearly — in some jurisdictions this affects enforceability, and in all cases it creates negotiating friction.",{"name":323,"plain_english":324,"sample_language":325,"common_mistake":326},"Return of company property","Requires the employee to return all company property — devices, documents, access credentials, and confidential data — by a specified date.","On or before [DATE], Employee shall return to Company all property belonging to Company, including laptop, mobile devices, access cards, client files, and any copies of Confidential Information in any format, and shall certify in writing that no copies have been retained.","Not specifying a hard return date or omitting digital property (cloud files, email archives, code repositories) — departing employees with lingering system access create ongoing data security and IP exposure.",{"name":328,"plain_english":329,"sample_language":330,"common_mistake":331},"Non-compete and non-solicitation","Restricts the employee from joining competitors or soliciting the company's customers or employees for a defined period and geography after separation.","For [12] months following the Separation Date, Employee shall not (a) engage in a Competing Business within [GEOGRAPHIC AREA], or (b) solicit, divert, or hire any customer, client, or employee of the Company with whom Employee had material contact during the [24]-month period preceding separation.","Copying the non-compete language from the original employment contract without checking whether the same terms remain proportionate given the circumstances of the separation and the applicable jurisdiction's current enforcement standards.",{"name":333,"plain_english":334,"sample_language":335,"common_mistake":336},"Cooperation clause","Requires the employee to assist the company with ongoing litigation, regulatory matters, or transition activities after separation, typically with expense reimbursement.","For [12] months following the Separation Date, Employee agrees to cooperate reasonably with Company in connection with any litigation, investigation, or transition matter in which Employee's knowledge is relevant, provided Company reimburses Employee's reasonable out-of-pocket expenses and, for matters requiring more than [4] hours, compensates Employee at $[HOURLY RATE] per hour.","Including an open-ended cooperation obligation with no time limit or compensation provision — courts and employees both view unlimited unpaid cooperation as unreasonable, which can color how a court reads the rest of the agreement.",{"name":338,"plain_english":339,"sample_language":340,"common_mistake":341},"Governing law, dispute resolution, and integration","Specifies which jurisdiction's law governs the agreement, how disputes are resolved (arbitration or court), and confirms the written agreement is the entire understanding between the parties.","This Agreement is governed by the laws of [STATE / PROVINCE / COUNTRY]. Any dispute shall be resolved by binding arbitration administered by [AAA / JAMS] in [CITY]. This Agreement constitutes the entire understanding between the parties and supersedes all prior representations, offers, and agreements.","Choosing a governing law state with no meaningful connection to the employee's work location — California, for example, applies its own law regardless of a contrary governing-law clause for employees who worked in California.",[343,348,353,358,363,368,373,378],{"step":344,"title":345,"description":346,"tip":347},1,"Enter the parties' full legal names and separation date","Use the employer's registered corporate entity name and the employee's legal name as it appears on payroll records. Confirm the exact separation date — this date triggers benefits cutoff, the start of restriction periods, and the review clock.","Cross-reference the separation date with your payroll system to ensure final pay, accrued PTO, and any outstanding commissions are settled on or before that date.",{"step":349,"title":350,"description":351,"tip":352},2,"Calculate and document the severance amount","Enter the total severance payment, the calculation basis (e.g., 2 weeks per year of service), and the payment schedule. State whether payment is a lump sum or installments and on which specific dates payments will be made.","Condition payment explicitly on the agreement becoming irrevocable — for employees under 40 this is upon signing; for employees 40 and over this is 7 days after signing.",{"step":354,"title":355,"description":356,"tip":357},3,"Specify benefits continuation terms","Confirm with your insurance carrier which benefits can continue post-separation and for how long. Enter the COBRA subsidy period and end date, and note which benefits terminate on the separation date.","Do not promise coverage continuation for benefits your carrier does not allow post-separation — verify with HR or your broker before completing this section.",{"step":359,"title":360,"description":361,"tip":362},4,"Tailor the release of claims to the employee's age","For employees under 40, a standard general release is sufficient. For employees 40 or older, add the full OWBPA block — 21-day review period, 7-day revocation right, and a written advisory to consult an attorney.","If conducting a group RIF with employees 40 and over, OWBPA requires a 45-day review period and a disclosure listing the ages and job titles of all employees in the decisional unit — consult an employment attorney before issuing.",{"step":364,"title":365,"description":366,"tip":367},5,"Set non-compete and non-solicitation scope","Confirm that non-compete and non-solicitation restrictions are enforceable in the employee's work jurisdiction before including them. Set geographic scope and duration proportionate to the employee's actual access to competitive information.","Several US states — including California, Minnesota, and North Dakota — prohibit most post-employment non-competes; remove the clause entirely for employees in those jurisdictions.",{"step":369,"title":370,"description":371,"tip":372},6,"Define the property return deadline and method","Set a specific return date no later than the separation date for physical items and within 24 hours for remote access revocation. List all property categories explicitly, including digital files, credentials, and cloud-stored documents.","For remote employees, arrange a prepaid shipping label in advance — a specific logistics plan dramatically increases timely compliance.",{"step":374,"title":375,"description":376,"tip":377},7,"Have both parties sign before any severance is paid","Both the authorized employer representative and the employee must sign before any payment is issued. For employees 40 and over, do not countersign until the 7-day revocation period has expired.","Use a timestamped eSignature platform to create an audit trail of when the agreement was sent, signed, and when the revocation window closed.",{"step":379,"title":380,"description":381,"tip":382},8,"Retain the executed agreement and notify relevant departments","Store the fully signed agreement in the employee's personnel file and notify payroll, IT, and benefits administration of the separation date and any post-separation obligations the company must fulfill.","Create a calendar reminder for each payment date and benefits cutoff date so no obligation is missed — missed payments can void the agreement in some jurisdictions.",[384,388,392,396,400,404],{"mistake":385,"why_it_matters":386,"fix":387},"Paying severance before the revocation window closes","For employees 40 and over, paying within the 7-day OWBPA revocation period means the employer has provided full consideration before the release is binding — the employee can revoke, keep the money, and still sue.","Hold all severance payments until the revocation period expires and you have written confirmation no revocation was submitted. For employees under 40, payment on the effective date of signing is acceptable.",{"mistake":389,"why_it_matters":390,"fix":391},"Using a one-size-fits-all release for all departing employees","A standard release that omits OWBPA disclosures is unenforceable against employees aged 40 and over for ADEA claims — the most frequently litigated category of employment discrimination.","Maintain two template variants — standard and ADEA-compliant — and check the employee's age before issuing. If in doubt, use the ADEA-compliant version for all employees.",{"mistake":393,"why_it_matters":394,"fix":395},"Attempting to waive claims that cannot legally be released","Including a release of EEOC charge rights, NLRA protected-activity rights, or workers' compensation claims can void the entire release agreement, not just the impermissible provision.","Limit the release to claims arising from the employment relationship and separate out any claims the employee retains by law. An employment attorney can confirm which claims are non-waivable in your jurisdiction.",{"mistake":397,"why_it_matters":398,"fix":399},"Omitting a clawback provision for post-separation covenant violations","Without a clawback, an employee who immediately joins a competitor or solicits clients has already received full severance with no practical remedy beyond costly litigation.","Include a clawback clause requiring repayment of severance (net of taxes paid) if the employee materially breaches the non-compete, non-solicitation, or confidentiality obligations within the restriction period.",{"mistake":401,"why_it_matters":402,"fix":403},"Failing to address equity, commissions, and bonus entitlements","Silence on unvested equity, outstanding commissions, or a pro-rated bonus creates disputes that can escalate into litigation, even after a signed release, if the employee argues these were earned pre-separation.","Expressly state the treatment of all equity awards, commissions owed through the separation date, and any bonus eligibility — even if the answer is that none are owed — so there is no room for ambiguity.",{"mistake":405,"why_it_matters":406,"fix":407},"Including non-compete restrictions without jurisdiction-checking","Unenforceable non-compete clauses do not simply disappear — in states like California, including one can expose the employer to unfair business practices claims under state law.","Verify enforceability for the employee's specific work state or country before including any post-employment competition restriction. Remove or narrow the clause where required by applicable law.",[409,412,415,418,421,424,427,430,433],{"question":410,"answer":411},"What is a severance agreement?","A severance agreement is a legally binding contract between an employer and a departing employee that sets out the terms of separation — typically including severance pay, benefits continuation, and post-employment restrictions — in exchange for the employee's release of all employment-related legal claims. It gives the employer a clean legal break from the separation and gives the employee financial support and clarity about what they are entitled to receive.\n",{"question":413,"answer":414},"Is a severance agreement required by law?","In the United States, no federal law requires employers to offer severance pay or a severance agreement. However, if an employer's written policy, employment contract, or collective bargaining agreement promises severance, that promise is generally enforceable. In Canada, the UK, and the EU, statutory termination pay and notice requirements apply regardless of whether a severance agreement exists — an agreement typically provides additional consideration above the statutory floor.\n",{"question":416,"answer":417},"What should a severance agreement include?","At minimum: a clearly identified separation date, the severance amount and payment schedule, benefits continuation terms, a general release of claims, confidentiality and non-disparagement obligations, a return-of- property clause, post-employment restrictions (non-compete and non-solicitation where enforceable), a cooperation clause, and governing law. For employees aged 40 and over in the US, OWBPA disclosures — including the 21-day review period and 7-day revocation right — are also legally required.\n",{"question":419,"answer":420},"Do employees have to sign a severance agreement?","No. Employees are never legally required to sign a severance agreement. The agreement is voluntary — the employee exchanges their right to sue for the severance benefits offered. If an employee declines to sign, they typically receive only whatever compensation is owed by law (final wages, accrued PTO) and no additional severance. Employees have the right to take time to review the agreement and consult an attorney before deciding.\n",{"question":422,"answer":423},"How long does an employee have to review a severance agreement?","For employees under 40 in the US, there is no federal minimum review period, but giving at least 5–7 business days is standard practice. For employees aged 40 or older, the OWBPA requires a minimum 21-day review period and a 7-day revocation window after signing before the agreement becomes irrevocable. For group layoffs involving employees 40 and over, the review period extends to 45 days and additional disclosures are required.\n",{"question":425,"answer":426},"Can a severance agreement waive all employment-related claims?","A properly drafted severance agreement can release most employment-related claims, including discrimination, wrongful termination, and breach of contract claims. However, certain rights cannot be waived regardless of what the agreement says — including the right to file a charge with the EEOC, rights under the NLRA to engage in protected concerted activity, workers' compensation claims in most states, and vested pension benefits under ERISA. Attempting to waive these in a release can void the entire agreement in some jurisdictions.\n",{"question":428,"answer":429},"What is the difference between a severance agreement and a separation agreement?","The terms are often used interchangeably, but there is a subtle distinction in practice. A severance agreement typically focuses on the employer's payment obligations and the employee's release of claims. A separation agreement is sometimes used as a broader term covering all terms of the end of the employment relationship, including severance, reference arrangements, equity treatment, and transition obligations. Both documents serve the same core legal function — trading compensation for a release of claims.\n",{"question":431,"answer":432},"How much severance should I offer?","There is no universal formula in the US, but one to two weeks of base salary per year of service — with a minimum of two to four weeks total — is a widely used benchmark for non-executive employees. Executives typically receive one to three months per year of service. The appropriate amount depends on the employee's tenure, the reason for separation, the risk of litigation, and the terms of any pre-existing employment contract. In Canada and the UK, statutory minimums set a floor that the offer must meet or exceed.\n",{"question":434,"answer":435},"Do I need a lawyer to draft a severance agreement?","For straightforward separations of non-executive employees in a single US state or Canadian province, a high-quality template reviewed by HR is often sufficient. Legal review is strongly recommended when the employee is aged 40 or older (OWBPA compliance), when the separation involves equity, outstanding litigation, or an existing employment contract, when the employee works across multiple jurisdictions, or when the separation carries significant discrimination or retaliation risk. A one-hour employment attorney review typically costs $300–$600 and is worthwhile for any departure with material legal exposure.\n",[437,441,445,449,453,457],{"industry":438,"icon_asset_id":439,"specifics":440},"Technology / SaaS","industry-saas","Equity treatment at separation — accelerated vesting, exercise window extensions, and RSU proration — must be addressed alongside cash severance to avoid post-departure disputes.",{"industry":442,"icon_asset_id":443,"specifics":444},"Financial Services","industry-fintech","Regulatory licensing obligations, clawback provisions tied to deferred compensation, and garden leave arrangements are standard features for departing bankers and advisors.",{"industry":446,"icon_asset_id":447,"specifics":448},"Healthcare","industry-healthtech","Patient non-solicitation clauses, HIPAA confidentiality obligations that survive separation, and credentialing hand-off requirements distinguish healthcare severance from standard agreements.",{"industry":450,"icon_asset_id":451,"specifics":452},"Professional Services","industry-professional-services","Client non-solicitation is the central concern given fee-based relationships; restricting client contact for 12–24 months post-separation is common and more consistently enforced than broad non-competes.",{"industry":454,"icon_asset_id":455,"specifics":456},"Manufacturing","industry-manufacturing","Trade secret and process confidentiality provisions carry particular weight; departing engineers or plant managers with access to proprietary formulations or production methods require tightly scoped IP protections.",{"industry":458,"icon_asset_id":459,"specifics":460},"Retail / Hospitality","industry-retail","High turnover and hourly workforce separations favor simple, short-form agreements; the key focus is final wage compliance, PTO payout, and a clean EEOC release rather than extensive restrictive covenants.",[462,466,470,473],{"vs":463,"vs_template_id":464,"summary":465},"Employment Contract","employment-agreement_at-will-employee-D541","An employment contract governs the beginning and ongoing terms of the working relationship — compensation, duties, IP, and restrictions during employment. A severance agreement governs the end of that relationship, trading post-employment compensation for a release of claims. The severance agreement typically overrides or supplements the termination provisions in the employment contract.",{"vs":467,"vs_template_id":468,"summary":469},"Mutual Termination Agreement","mutual-termination-agreement-D13268","A mutual termination agreement documents a consensual end to an employment relationship, often without a severance payment or formal release of claims. A severance agreement is used when the employer is providing financial consideration specifically in exchange for a legally binding release. Use a severance agreement when litigation risk or claim exposure is the primary concern.",{"vs":109,"vs_template_id":471,"summary":472},"employee-dismissal-letter-D508","A dismissal letter is a non-binding notice document informing an employee of termination — it creates no contractual obligations and does not release any claims. A severance agreement is a binding bilateral contract. The dismissal letter may accompany the severance agreement as the formal notice of termination, but it cannot substitute for the agreement's legal protections.",{"vs":474,"vs_template_id":475,"summary":476},"Non-Disclosure Agreement","non-disclosure-agreement-nda-D12692","A standalone NDA is a focused confidentiality agreement covering specific information. A severance agreement typically includes confidentiality provisions as one clause among many, covering both the agreement's own terms and the company's broader confidential information. Use a standalone NDA when confidentiality obligations need to persist across multiple contexts beyond the separation itself.",{"use_template":478,"template_plus_review":482,"custom_drafted":486},{"best_for":479,"cost":480,"time":481},"Non-executive employees under 40, straightforward separations in a single domestic jurisdiction, low litigation risk","Free","30–60 minutes",{"best_for":483,"cost":484,"time":485},"Employees aged 40 or older, cross-state or cross-border separations, departures involving equity or an existing employment contract","$300–$600","1–3 days",{"best_for":487,"cost":488,"time":489},"Executive separations with equity acceleration and enhanced severance, group RIFs, active litigation or EEOC charges, regulated industries","$1,500–$5,000+","1–2 weeks",[491,496,501,506],{"code":492,"name":493,"flag_asset_id":494,"note":495},"us","United States","flag-us","Federal law (OWBPA) requires a 21-day review period, 7-day revocation window, and written attorney advisement for employees aged 40 and over; group RIFs require 45 days. Non-compete enforceability varies sharply by state — California, Minnesota, and North Dakota prohibit most post-employment restrictions. Several states also require specific wage payment timing on separation, and failure to comply can trigger waiting-time penalties.",{"code":497,"name":498,"flag_asset_id":499,"note":500},"ca","Canada","flag-ca","Common-law reasonable notice can reach one month per year of service for long-tenured employees, far exceeding Employment Standards Act minimums. Severance agreements must provide at least the statutory floor; anything less is unenforceable. Ontario requires 'fresh consideration' beyond the statutory entitlement for a release to be binding. Quebec agreements must be available in French for provincially regulated employers.",{"code":502,"name":503,"flag_asset_id":504,"note":505},"uk","United Kingdom","flag-uk","Settlement agreements (formerly compromise agreements) must be in writing, and the employee must receive independent legal advice — paid for by the employer, typically £350–£500 — for the release of statutory claims to be valid. The first £30,000 of a severance payment is generally tax-free. Post-employment restrictive covenants are enforceable only if they are reasonable in scope and supported by adequate consideration at the time of the original employment agreement.",{"code":507,"name":508,"flag_asset_id":509,"note":510},"eu","European Union","flag-eu","Member state employment law governs most severance terms, and statutory notice and redundancy pay entitlements vary significantly — France, Germany, and Spain impose lengthy notice periods and require consultation processes before mass layoffs. The EU's GDPR requires that any data processing of the employee's personal information post-separation be addressed in or alongside the agreement. Non-compete clauses in several member states require ongoing financial compensation — typically 25–50% of base salary — during the restriction period to be enforceable.",[464,471,248,475,512,513,514,515,516,517,518,519],"employment-agreement-executive-D543","job-offer-letter-long-D12769","warning-notice-D622","employee-termination-policy-D13489","independent-contractor-agreement-D160","employee-handbook-D712","general-non-compete-agreement-D882","reference-check-letter-D601",{"emit_how_to":180,"emit_defined_term":180},{"primary_folder":105,"secondary_folder":522,"document_type":523,"industry":524,"business_stage":525,"tags":526,"confidence":532},"transfers-terminations-and-releases","agreement","general","all-stages",[527,528,529,530,531],"termination","employment","legal","severance","separation",0.95,"\u003Ch2>What is a Severance Agreement?\u003C/h2>\n\u003Cp>A \u003Cstrong>Severance Agreement\u003C/strong> is a legally binding contract between an employer and a departing employee that sets out the terms of separation — severance pay, benefits continuation, and post-employment obligations — in exchange for the employee's release of all employment-related legal claims against the company. Unlike a dismissal letter, which is a one-way notice with no binding force, a severance agreement is a bilateral contract: the employer provides financial consideration, and the employee waives the right to pursue claims arising from the employment relationship. It is the legal mechanism that converts a potentially contentious separation into a clean, documented conclusion. This free Word download covers every standard provision in a single editable document you can customize, have reviewed by counsel, and execute via eSignature.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Without a signed severance agreement, a departing employee retains the full right to file a discrimination charge, wrongful termination lawsuit, or wage claim — regardless of how much the company pays them on the way out. Severance payments made without a corresponding release provide zero legal protection. Beyond litigation risk, an undocumented separation leaves critical questions unanswered: when does the employee's access to systems terminate, what happens to unvested equity, and what stops them from calling your top ten clients next Monday? A properly drafted severance agreement closes all of those gaps in a single document. For employers managing a reduction in force, standardizing on a compliant template ensures consistent treatment across affected employees — which itself reduces discrimination exposure. For individual managers handling a difficult departure, it provides a defensible, documented process that stands up to scrutiny.\u003C/p>\n",1781186023810]