[{"data":1,"prerenderedAt":531},["ShallowReactive",2],{"document-severance-package-D13238":3},{"document":4,"label":23,"preview":11,"thumb":24,"thumb600":25,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":26,"breadcrumb":30,"related":36,"customDescModule":174,"customdescription":6,"mdFm":175,"mdProseHtml":530},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":16,"keywords":15},"SEVERANCE PACKAGE This Severance Package is maintained by [COMPANY NAME] and certain of its subsidiaries and affiliates (the \"Company\"). The purpose of this Severance Package is to provide temporary benefits to eligible Executives whose employment is involuntarily terminated and to assist such Executives with their transition to new employment. The Severance Package is not intended to create a vested entitlement for Executives who are offered a Comparable Position of employment or to provide benefits to Executives who are terminated for a non-eligible termination reason. No Executives have any vested right to any benefits under this package prior to the date the Executives are terminated for reasons rendering the Executives eligible for benefits under the express terms of the Severance Plan. APPLICATION This Severance Package applies solely to individuals who are eligible Executives, with the exclusion of Executive Committee Executives of the Company on their Termination Date. The eligibility of the Executive shall be determined by the Severance Plan of the Company. SEVERANCE PACKAGE AND PAY SCHEDULE This Severance Package includes: The Executive's remaining regular pay An additional payment based on months of service Payment for unused vacation or sick leave A payment in lieu of a required notice period Medical, dental or life insurance (Some employers offer a continuation of insurance benefits, but without paying the bills.) Retirement benefits Stock options Unemployment benefits Except as otherwise provided, benefits under this Severance Package shall be paid as follows: Duration of Employment Term Number of Weeks Less than one year 3 One year - less than two 4 Two years - less than three 4 Three years - less than four 5 Four years - less than five 6 Five years - less than six 7 Six years or more 8 The maximum allowed severance period is eight weeks. Severance is calculated on base pay only. Executives may choose to receive it as a salary continuation benefit (continue payments on scheduled paydays) or in a lump sum. Subject to the terms of any applicable Plan documents, during the severance period, medical, dental, and prescription drug benefits coverage may be continued, and certain other welfare benefits may be continued as to the Executives and for the periods of time determined by the Company in its absolute and sole discretion. Notwithstanding any other provision in this Severance Package, expatriates eligible for Severance Benefits under this Severance Package will receive only the greater of: ",null,"Severance Package","3",513,"doc","https://templates.business-in-a-box.com/imgs/1000px/severance-package-D13238.png","https://templates.business-in-a-box.com/imgs/250px/13238.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13238.xml",{"title":15,"description":6},"severance package",[17,20],{"label":18,"url":19},"Human Resources","/templates/human-resources/",{"label":21,"url":22},"Employee Termination","/templates/employee-termination/","Severance Package Template","https://templates.business-in-a-box.com/imgs/400px/13238.png","https://templates.business-in-a-box.com/imgs/600px/13238.png",[27,17,20],{"label":28,"url":29},"Templates","/templates/",[31,32,33],{"label":28,"url":29},{"label":18,"url":19},{"label":34,"url":35},"Offboarding & References","/templates/offboarding-and-references/",[37,41,45,49,53,57,61,65,69,73,77,81,85,100,115,131,145,159],{"label":38,"url":39,"thumb":40,"extension":10},"How To Negotiate Your Severance Package","/template/how-to-negotiate-your-severance-package-D13271","https://templates.business-in-a-box.com/imgs/250px/13271.png",{"label":42,"url":43,"thumb":44,"extension":10},"Severance Plan","/template/severance-plan-D13185","https://templates.business-in-a-box.com/imgs/250px/13185.png",{"label":46,"url":47,"thumb":48,"extension":10},"Severance Agreement","/template/severance-agreement-D525","https://templates.business-in-a-box.com/imgs/250px/525.png",{"label":50,"url":51,"thumb":52,"extension":10},"Sponsorship Package","/template/sponsorship-package-D12838","https://templates.business-in-a-box.com/imgs/250px/12838.png",{"label":54,"url":55,"thumb":56,"extension":10},"Severance Letter","/template/severance-letter-D13283","https://templates.business-in-a-box.com/imgs/250px/13283.png",{"label":58,"url":59,"thumb":60,"extension":10},"California Severance Agreement","/template/california-severance-agreement-D13912","https://templates.business-in-a-box.com/imgs/250px/13912.png",{"label":62,"url":63,"thumb":64,"extension":10},"Severance Pay Agreement","/template/severance-pay-agreement-D12863","https://templates.business-in-a-box.com/imgs/250px/12863.png",{"label":66,"url":67,"thumb":68,"extension":10},"Severance Agreement (over 40)","/template/severance-agreement-over-40-D12862","https://templates.business-in-a-box.com/imgs/250px/12862.png",{"label":70,"url":71,"thumb":72,"extension":10},"Employee Termination Policy","/template/employee-termination-policy-D13489","https://templates.business-in-a-box.com/imgs/250px/13489.png",{"label":74,"url":75,"thumb":76,"extension":10},"Termination and Separation Policy","/template/termination-and-separation-policy-D13788","https://templates.business-in-a-box.com/imgs/250px/13788.png",{"label":78,"url":79,"thumb":80,"extension":10},"Cancellation Policy","/template/cancellation-policy-D12627","https://templates.business-in-a-box.com/imgs/250px/12627.png",{"label":82,"url":83,"thumb":84,"extension":10},"No Cancellation Policy","/template/no-cancellation-policy-D13451","https://templates.business-in-a-box.com/imgs/250px/13451.png",{"description":86,"descriptionCustom":6,"label":87,"pages":88,"size":9,"extension":10,"preview":89,"thumb":90,"svgFrame":91,"seoMetadata":92,"parents":94,"keywords":93,"url":99},"SEPARATION AGREEMENT This Separation Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [PARTNER A FULL NAME], (\"Partner A\") an individual with their main address located at: [YOUR COMPLETE ADDRESS] AND: [PARTNER B FULL NAME], (\"Partner B\") an individual with their main address located at: [YOUR COMPLETE ADDRESS] Collectively, Partner A and Partner B shall be referred to as the \"Parties.\" WHEREAS, the Parties are partners in a partnership for the purpose of [SPECIFY THE PURPOSE OF BUSINESS] and entered into a written agreement dated [DATE]. WHEREAS, Partner A (the \"SEPARATING PARTNER\") desires and has agreed upon a separation from the partnership and is entering into this Separation Agreement with Partner B in order to effectuate the same. WHEREAS, Partner B shall manage the affairs of the Business solely after the effective date of this Agreement. NOW, THEREFORE, the Parties hereby agree as follows: SEPARATION Partner A shall separate himself from the partnership, effective on [DATE] and thereafter promptly halt involvement in the affairs of the Business, and incur no further obligations on behalf of the Business after the effective date of this Agreement. Partner B shall manage the affairs of the Business solely after the effective date of this Agreement. The Parties shall mutually determine the extent and whereabouts of all partnership assets, inventory, liabilities, debts and tax obligations. Accounting. A statement of account shall be prepared which will include a list of all the inventories, assets, liabilities and debts, and such statement of account shall be treated as a matter of record and the Parties may access the said statement when necessary or desired. On completion of the accounting, the Separating Partner shall pay his share of liabilities, debts, taxes and other pending expenditures, if any. After the obligation of the Separating Partner to pay the liabilities is fulfilled, the remaining amount shall be distributed in the proportion of the contribution of the Separating Partner towards the capital of the Business. In such division, any amounts paid earlier or due to the Separating Partner according to the books of the partnership shall be taken into account. RELEASE AND INDEMNIFICATION Partner B releases Partner A from any and all known claims, actions and demands arising as a result of the Business. This release does not prevent a Party from bringing suit under this Separation Agreement, should this Agreement not be fulfilled according to the rules set forth. The Parties agree to indemnify the other Party from claims, damages, or obligations of any kind with regard to their duties in distribution of assets and liabilities, unless the claims or losses come as a result of a Party's breach of contract, unethical behavior, and/or grossly negligent actions. CONFIDENTIALITY The Separating Partner agrees to hold the provisions of this Agreement in strictest confidence and agrees not to publicize or disclose any confidential or proprietary information of the other Party or the Business, its subsidiaries or affiliated entities and not to solicit the Business's employees, and, to the extent permitted by applicable law, not to solicit the Business's customers. NON-DISPARAGEMENT ","Separation Agreement","4","https://templates.business-in-a-box.com/imgs/1000px/separation-agreement-D13184.png","https://templates.business-in-a-box.com/imgs/250px/13184.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13184.xml",{"title":93,"description":6},"separation agreement",[95,98],{"label":96,"url":97},"Legal Agreements","business-legal-agreements",{"label":96,"url":97},"/template/separation-agreement-D13184",{"description":101,"descriptionCustom":6,"label":102,"pages":103,"size":9,"extension":10,"preview":104,"thumb":105,"svgFrame":106,"seoMetadata":107,"parents":109,"keywords":108,"url":114},"[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","2","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":108,"description":6},"employee dismissal letter",[110,112],{"label":18,"url":111},"human-resources",{"label":21,"url":113},"employee-termination","/template/employee-dismissal-letter-D508",{"description":116,"descriptionCustom":6,"label":117,"pages":118,"size":9,"extension":10,"preview":119,"thumb":120,"svgFrame":121,"seoMetadata":122,"parents":124,"keywords":123,"url":130},"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","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":123,"description":6},"employment agreement_at will employee",[125,126,129],{"label":18,"url":111},{"label":127,"url":128},"Hire an Employee","hire-employee",{"label":96,"url":97},"/template/employment-agreement_at-will-employee-D541",{"description":132,"descriptionCustom":6,"label":133,"pages":134,"size":135,"extension":10,"preview":136,"thumb":137,"svgFrame":138,"seoMetadata":139,"parents":140,"keywords":143,"url":144},"SETTLEMENT AGREEMENT This Settlement Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [FIRST PARTY NAME] (the \"Creditor\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [SECOND PARTY NAME] (the \"Company\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] [THIRD PARTY NAME] (the \"Debtor\"), an individual with his main address located at: [COMPLETE ADDRESS] WHEREAS by Statement of Claim filed on [DATE] in the Federal Court of [COUNTRY] (Trial Division) under court file number [NUMBER], as amended by an Amended Statement of Claim filed therein on [EFFECTIVE DATE], [COMPANY NAME]. (the \"Creditor\") instituted proceedings as plaintiff against the Company and Debtor as defendants in recovery of the sum of [AMOUNT] (the \"Action\"); WHEREAS in the Action, the Creditor has claimed the amount of [AMOUNT] from Debtor pursuant to a certain guarantee executed by him in favor of the Creditor; WHEREAS [COMPANY NAME] and the Creditor amalgamated effective [DATE], such that [COMPANY NAME] became a division of the Creditor; WHEREAS the parties have agreed to settle the Action upon the terms and conditions hereinafter set forth: NOW WHEREFORE, the parties hereto agree as follows: The Action is settled upon the terms hereinafter set forth. The parties shall execute a Declaration of Settlement Out Of Court in respect of the Action, which Declaration shall be remitted to the Bank, and which the Bank shall file in the court record on the latest of the trial date fixed for the Action, being [EFFECTIVE DATE], receipt of the initial payment provided for in Section 2 hereof and the date of registration of the Security contemplated in Section 2 hereof. Debtor hereby undertakes to pay to the Creditor the sum of [AMOUNT] in lawful currency of [COUNTRY] (the \"Settlement Amount\"), payable as set out below. Debtor shall pay to the Bank at its offices noted above the principal sum of [AMOUNT] in lawful currency of [COUNTRY] (the \"Principal Amount\"), by way of [NUMBER] equal consecutive monthly installments in the amount of [AMOUNT] each, payable on the [DATE] day of each month, commencing on [EFFECTIVE DATE] until full payment on [DATE] (the \"Payments\"). Concurrently with the execution hereof, Debtor shall deliver to the Creditor [NUMBER] check in the amount of [AMOUNT] each dated the [DATE] day of each month in payment of the Payments for [EFFECTIVE DATE] to [EFFECTIVE DATE] inclusively. Thereafter, Debtor shall deliver to the Creditor by or before [DATE] of each year, commencing [EFFECTIVE DATE] to [EFFECTIVE DATE] inclusively, [NUMBER] check in the amount of [AMOUNT] each dated the [NUMBER] day of each of the following [NUMBER] months in payment of the Payments for the said [NUMBER] month period. By or before [EFFECTIVE DATE], Debtor shall deliver to the Creditor [NUMBER] check in the amount of [AMOUNT] each dated the [NUMBER] day of each of the remaining [NUMBER] months in payment of the Payments for the said [NUMBER] month period. The Principal Amount shall bear interest from the date of any unremedied default at the rate of [PERCENTAGE %] percent per annum, calculated on the balance then outstanding and payable on demand. All interest not paid when due shall bear interest at the same rate calculated as aforesaid and payable on demand. The balance of [AMOUNT] (the \"Balance\") shall be paid to the Creditor by way of compensation and set-off against the amount of any commission which may become owing to Debtor by the Creditor on any sales of its assets which Debtor may make from time to time hereafter on behalf of the Creditor, and against the amount of any salary or other compensation which may become owing to him by the Creditor in respect of any other services of any nature whatsoever which Debtor may perform from time to time hereafter on behalf of the Creditor. The amount of such commissions, salary and/or other compensation shall be determined in accordance with the terms and conditions of any agreements which the Creditor and Debtor may enter into for the provision of such services by Debtor to the Creditor. The Creditor shall provide to Debtor on a regular basis a list of assets currently offered for sale by the Creditor and undertakes to give Debtor every opportunity, on a non-exclusive basis, to sell such assets and undertakes not to act unreasonably in considering any offer to purchase which Debtor may bring to the Creditor. In the event that the Balance has not been repaid in full on the date the last payment falls due under Section 2.1 hereof, Debtor shall pay off the amount of the Balance then outstanding (the \"Unpaid Balance\") by way of consecutive monthly installments in the amount of [AMOUNT] each, payable on the [DATE] day of each month, commencing [EFFECTIVE DATE] (the \"Extended Period\"). On [EFFECTIVE DATE], Debtor shall deliver to the Creditor the requisite number of check in the amount of [AMOUNT] each dated the [DATE] day of each month in payment of the Unpaid Balance, provided always that Debtor shall still be able to pay any or all of the Unpaid Balance during the Extended Period by way of compensation and set-off pursuant to the provisions of Section 2.3.1. Debtor shall have a grace period of [NUMBER] days from the date of any written notice of default to make any Payment due hereunder to remedy said default. In the event the default is not remedied within such period, Debtor shall lose the benefit of the term provided for herein and the entire balance of the Settlement Amount then outstanding shall become immediately due and payable. The Creditor shall then be entitled to demand payment in full of the outstanding amount of the Settlement Amount, by written notice of demand, without further notice, including prior notice of such acceleration, or delay. The Creditor shall, in addition to its right to accelerate payment in the event of an unremedied default to make any payment, be entitled to accelerate payment should the Creditor advise Debtor in writing of the discovery of any material omission of any encumbrance on any of the assets listed in Schedule C or of any other limitation or alteration in Debtor's right, title and interest in and to the assets listed in Schedule C, provided that Debtor shall have [NUMBER] days from the date of such notice to remedy the default such that the omission is no longer material, but not in the event of any other default hereunder. Concurrently with his execution of the present Settlement Agreement, Debtor shall execute demand promissory notes in the amounts of [AMOUNT] respectively, in the form of the promissory notes annexed hereto as Schedules A and B respectively, to be held by the Creditor as collateral security for the performance of Debtor's obligations under this Section 2. Debtor shall grant security in favor of the Creditor against each and all of the assets identified in the affidavit executed by Debtor concurrently herewith and annexed hereto as Schedule C (the \"Secured Assets\"), subject to the encumbrances thereon as disclosed therein (the \"Encumbrances\"), which Encumbrances Debtor hereby represents and warrants are all the encumbrances existing against the Secured Assets, and which Secured Assets Debtor hereby represents and warrants have a net aggregate liquidation value, after deduction of the reasonable expenses of liquidation and after payment of the Encumbrances of not less than the Settlement Amount. ","Settlement Agreement","8",64,"https://templates.business-in-a-box.com/imgs/1000px/settlement-agreement-D916.png","https://templates.business-in-a-box.com/imgs/250px/916.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#916.xml",{"title":6,"description":6},[141,142],{"label":96,"url":97},{"label":96,"url":97},"settlement agreement","/template/settlement-agreement-D916",{"description":146,"descriptionCustom":6,"label":147,"pages":148,"size":9,"extension":10,"preview":149,"thumb":150,"svgFrame":151,"seoMetadata":152,"parents":154,"keywords":157,"url":158},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: acceptance of resignation Dear [Contact name], I have just been informed that you are quitting [COMPANY]. I must admit that it is with deep regret that we accept your resignation as [position] of the [COMPANY]. We understand the demands that this position requested, and appreciate the tremendous contributions you have made as [position].","Acceptance of Resignation","1","https://templates.business-in-a-box.com/imgs/1000px/acceptance-of-resignation-D502.png","https://templates.business-in-a-box.com/imgs/250px/502.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#502.xml",{"title":153,"description":6},"acceptance of resignation",[155,156],{"label":18,"url":111},{"label":21,"url":113},"acceptance resignation","/template/acceptance-of-resignation-D502",{"description":160,"descriptionCustom":6,"label":161,"pages":162,"size":163,"extension":10,"preview":164,"thumb":165,"svgFrame":166,"seoMetadata":167,"parents":168,"keywords":172,"url":173},"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},[169,170,171],{"label":18,"url":111},{"label":127,"url":128},{"label":96,"url":97},"employment agreement executive","/template/employment-agreement-executive-D543",false,{"seo":176,"reviewer":188,"legal_disclaimer":192,"quick_facts":193,"at_a_glance":195,"personas":199,"variants":224,"glossary":251,"clauses":288,"how_to_fill":339,"common_mistakes":380,"faqs":405,"industries":433,"comparisons":458,"diy_vs_lawyer":474,"jurisdictions":487,"related_template_ids_curated":508,"schema":517,"classification":518},{"meta_title":177,"meta_description":178,"primary_keyword":179,"secondary_keywords":180},"Severance Package Template (Free Word)","Free severance package template covering separation pay, benefits continuation, releases, and non-disparagement. Used in 190+ countries. Free Word and PDF download.","severance package template",[181,182,183,184,185,186,187],"severance agreement template","severance package template word","severance agreement template free","employee severance package template","separation agreement template","severance pay agreement template","termination severance agreement template",{"name":189,"credential":190,"reviewed_date":191},"Bruno Goulet","CEO, Business in a Box","2026-05-02",true,{"difficulty":194,"legal_review_recommended":192,"signature_required":192,"notarization_required":174},"advanced",{"what_it_is":196,"when_you_need_it":197,"whats_inside":198},"A Severance Package is a legally binding agreement between an employer and a departing employee that documents the compensation, benefits, and conditions attached to the end of employment. This free Word download covers separation pay, benefits continuation, a release of claims, non-disparagement, confidentiality, and return-of-property obligations in a single structured document you can edit online and export as PDF.\n","Use it when terminating an employee without cause, conducting a reduction in force, or negotiating a mutual separation — any situation where you are offering compensation in exchange for a clean, documented end to the employment relationship. It is also used when an employee negotiates departure terms after a constructive dismissal claim.\n","Separation date and final pay details, severance formula and payment schedule, COBRA or benefits continuation terms, a mutual release of claims, non-disparagement and confidentiality obligations, return-of-property requirements, and governing law with a 21- or 45-day review period as required under US federal law for employees 40 and older.\n",[200,204,208,212,216,220],{"title":201,"use_case":202,"icon_asset_id":203},"HR managers","Issuing standardized severance offers across a layoff or RIF event","persona-hr-manager",{"title":205,"use_case":206,"icon_asset_id":207},"Small business owners","Documenting a one-off separation without in-house legal counsel","persona-small-business-owner",{"title":209,"use_case":210,"icon_asset_id":211},"CEOs and founders","Negotiating departure terms for a senior executive or co-founder","persona-ceo",{"title":213,"use_case":214,"icon_asset_id":215},"Operations directors","Standardizing termination procedures across departments or locations","persona-operations-director",{"title":217,"use_case":218,"icon_asset_id":219},"Employment attorneys","Generating a compliant starting draft for client review and customization","persona-attorney",{"title":221,"use_case":222,"icon_asset_id":223},"Departing employees","Understanding what a severance offer should contain before signing","persona-employee",[225,229,232,236,240,244,247],{"situation":226,"recommended_template":227,"slug":228},"Laying off multiple employees simultaneously in a RIF","Group Severance Agreement (RIF)","severance-agreement-D525",{"situation":230,"recommended_template":231,"slug":228},"Separating a C-suite executive with equity and enhanced severance","Executive Severance Agreement",{"situation":233,"recommended_template":234,"slug":235},"Mutually ending employment where both parties have claims","Mutual Separation Agreement","mutual-termination-of-contract-D513",{"situation":237,"recommended_template":238,"slug":239},"Terminating an employee for cause with no severance payment","Employee Termination Letter","employee-dismissal-letter-D508",{"situation":241,"recommended_template":242,"slug":243},"Documenting a voluntary resignation with a transition agreement","Resignation Acceptance Letter","acceptance-of-resignation-D502",{"situation":245,"recommended_template":133,"slug":246},"Settling an active employment discrimination or harassment claim","settlement-agreement-D916",{"situation":248,"recommended_template":249,"slug":250},"Offering a retirement incentive package to eligible employees","Early Retirement Incentive Agreement","incentive-agreement-D13226",[252,255,258,261,264,267,270,273,276,279,282,285],{"term":253,"definition":254},"Severance Pay","Compensation paid by an employer to a departing employee beyond their final paycheck, typically calculated as a number of weeks' pay per year of service.",{"term":256,"definition":257},"Release of Claims","A contractual provision in which the employee waives the right to sue the employer for any claims arising out of or related to the employment relationship.",{"term":259,"definition":260},"ADEA Waiver","A release that specifically waives age discrimination claims under the Age Discrimination in Employment Act, requiring a 21-day consideration period and 7-day revocation window for employees aged 40 or older.",{"term":262,"definition":263},"COBRA","The Consolidated Omnibus Budget Reconciliation Act — a US federal law allowing departing employees to continue employer-sponsored health coverage for up to 18 months at their own cost.",{"term":265,"definition":266},"Non-Disparagement Clause","A mutual or one-sided provision prohibiting the parties from making negative or harmful public statements about each other after separation.",{"term":268,"definition":269},"Consideration","Something of value given in exchange for the employee's agreement — typically the severance payment itself — without which the release is unenforceable.",{"term":271,"definition":272},"Garden Leave","A notice period during which the employee is paid their regular salary but not required — or permitted — to perform work, preventing access to clients or confidential information.",{"term":274,"definition":275},"Constructive Dismissal","A situation in which an employer's unilateral and significant change to employment conditions effectively forces the employee to resign, treated legally as a termination.",{"term":277,"definition":278},"Reduction in Force (RIF)","An employer-initiated elimination of positions, typically for economic or restructuring reasons rather than individual performance, often triggering severance obligations.",{"term":280,"definition":281},"WARN Act","The US Worker Adjustment and Retraining Notification Act, requiring employers with 100 or more employees to give 60 days' advance written notice before a mass layoff or plant closing.",{"term":283,"definition":284},"Pay in Lieu of Notice","A lump-sum payment equal to the salary the employee would have earned during a required notice period, given instead of requiring the employee to work that period out.",{"term":286,"definition":287},"Clawback Provision","A clause requiring the employee to repay some or all severance if they breach a post-separation obligation such as non-disparagement or confidentiality.",[289,294,299,304,309,314,319,324,329,334],{"name":290,"plain_english":291,"sample_language":292,"common_mistake":293},"Parties, separation date, and recitals","Identifies the employer and employee as legal entities, states the effective separation date, and briefly sets out the background — why the agreement is being entered into.","This Severance Agreement and General Release ('Agreement') is entered into as of [DATE] between [EMPLOYER LEGAL NAME], a [STATE] [ENTITY TYPE] ('Company'), and [EMPLOYEE FULL NAME] ('Employee'). Employee's employment with the Company will end effective [SEPARATION DATE].","Using the employer's trade name instead of the registered legal entity name — creating enforceability ambiguity if the operating name and legal name differ.",{"name":295,"plain_english":296,"sample_language":297,"common_mistake":298},"Severance pay and payment schedule","States the total severance amount, how it is calculated, and whether it is paid as a lump sum or in regular installments on the normal payroll cycle.","In consideration of Employee's execution of this Agreement, Company agrees to pay Employee a severance of $[AMOUNT], equivalent to [X] weeks of base salary, payable in [lump sum on / installments beginning] [DATE], less applicable withholdings and deductions.","Failing to specify whether payment is a lump sum or installment — which matters significantly for income tax timing and for what triggers clawback if the employee breaches the agreement.",{"name":300,"plain_english":301,"sample_language":302,"common_mistake":303},"Benefits continuation","Addresses what happens to health insurance, life insurance, and other benefits after the separation date — including COBRA election rights and any employer subsidy of premiums.","Employee's participation in the Company's group health plan will cease on [DATE]. The Company will [subsidize Employee's COBRA premiums for [X] months / provide Employee with [X] months of continued health coverage at no cost to Employee], after which Employee is responsible for all continuation costs.","Promising a specific dollar subsidy of COBRA premiums without confirming the current plan premium — the amount changes annually and the contract may understate or overstate the actual cost.",{"name":305,"plain_english":306,"sample_language":307,"common_mistake":308},"General release of claims","The employee releases all known and unknown claims against the employer — including wrongful termination, discrimination, harassment, and wage-and-hour claims — in exchange for the severance consideration.","In exchange for the consideration described herein, Employee hereby releases and forever discharges the Company and its officers, directors, employees, and agents from any and all claims, demands, causes of action, and liabilities of any kind, known or unknown, arising out of or relating to Employee's employment or the termination thereof, including but not limited to claims under Title VII, the ADEA, the ADA, the FMLA, and applicable state law.","Including an overly broad release that purports to waive future claims or claims that cannot be waived by law — such as the right to file an EEOC charge — which can render the entire release void in some jurisdictions.",{"name":310,"plain_english":311,"sample_language":312,"common_mistake":313},"ADEA-compliant waiver and revocation rights","For employees aged 40 or older, a specific acknowledgment that the employee has 21 days to consider the agreement (45 days for group layoffs) and 7 days to revoke after signing.","Employee acknowledges that: (a) this Agreement includes a waiver of claims under the ADEA; (b) Employee has been advised to consult an attorney; (c) Employee has [21 / 45] days to consider this Agreement; and (d) Employee may revoke this Agreement within 7 days of signing by providing written notice to [HR CONTACT / EMAIL].","Using a 21-day period for a group RIF instead of the required 45-day period — invalidating the ADEA waiver for every employee in the group, even those who have already signed.",{"name":315,"plain_english":316,"sample_language":317,"common_mistake":318},"Non-disparagement","Prohibits both the employee and the employer's representatives from making public statements that harm the reputation of the other party after separation.","Employee agrees not to make any statement, written or oral, that disparages the Company, its products, services, or current or former employees. The Company agrees to instruct its officers and directors not to make disparaging statements about Employee. Neither party is prevented from providing truthful testimony in a legal proceeding.","Making the non-disparagement clause one-sided (employee only) without considering that some states — including California — require mutual non-disparagement to be enforceable as of 2022.",{"name":320,"plain_english":321,"sample_language":322,"common_mistake":323},"Confidentiality and return of property","Requires the employee to maintain confidentiality of the agreement's terms and the company's trade secrets, and to return all company property — devices, documents, access credentials — by a specified date.","Employee shall keep the terms of this Agreement strictly confidential, except as required by law or to consult with an attorney or tax advisor. Employee shall return all Company property — including laptops, access badges, and confidential documents — no later than [DATE].","Setting a property return deadline that falls after the separation date but before any severance payment — giving the employee an incentive to delay return without creating a clear breach trigger.",{"name":325,"plain_english":326,"sample_language":327,"common_mistake":328},"Post-employment restrictions","Incorporates or restates any surviving non-compete, non-solicitation, or IP assignment obligations from the original employment contract, confirming they survive separation.","Employee acknowledges that the non-solicitation and confidentiality provisions set forth in the Employment Agreement dated [DATE] survive the termination of employment and remain in full force and effect. [If applicable: Employee's non-compete obligation of [X] months commences on the Separation Date.]","Attempting to introduce new restrictive covenants in the severance agreement that were never in the original employment contract — courts in most jurisdictions will not enforce them without new independent consideration beyond the severance already being paid.",{"name":330,"plain_english":331,"sample_language":332,"common_mistake":333},"No admission of liability","States explicitly that the agreement and the payment are not an admission by either party that any wrongdoing or legal violation occurred.","This Agreement does not constitute an admission by the Company of any wrongdoing, liability, or violation of law. Employee likewise does not admit to any breach of duty or policy.","Omitting this clause entirely — without it, plaintiffs' attorneys can argue in subsequent litigation that the severance payment itself is evidence of liability.",{"name":335,"plain_english":336,"sample_language":337,"common_mistake":338},"Governing law, integration, and dispute resolution","Specifies which jurisdiction's law governs the agreement, confirms this document supersedes all prior agreements, and sets the mechanism for resolving disputes.","This Agreement is governed by the laws of [STATE / PROVINCE]. This Agreement constitutes the entire agreement between the parties regarding its subject matter and supersedes all prior representations and agreements. Any dispute shall be resolved by binding arbitration in [CITY], except claims for injunctive relief.","Choosing a governing law with no connection to where the employee actually worked — many jurisdictions, including California, apply local employment law regardless of the contract's choice-of-law clause.",[340,345,350,355,360,365,370,375],{"step":341,"title":342,"description":343,"tip":344},1,"Enter the employer's legal entity name and the employee's details","Use the full registered corporate name of the employer — not a brand or DBA — and the employee's legal name as it appears on employment records. Include the employee's job title and department for context.","Cross-check the entity name against your state or provincial corporate registry before the employee signs — a name mismatch can void the release.",{"step":346,"title":347,"description":348,"tip":349},2,"Set the separation date and confirm final pay logistics","State the exact last day of employment. Confirm that final wages, accrued vacation, and expense reimbursements will be paid by the date required under applicable state or provincial law — separately from and in addition to the severance.","In California, final wages must be paid on the last day of employment for involuntary terminations — the severance agreement cannot delay or condition this payment.",{"step":351,"title":352,"description":353,"tip":354},3,"Calculate and document the severance amount","Enter the total severance, the formula used (e.g., 2 weeks per year of service), and whether it will be paid as a lump sum or in regular installments. Specify the start date for installment payments.","Lump-sum payments are cleaner to administer and reduce clawback complexity — but installments preserve leverage if the employee breaches post-separation obligations.",{"step":356,"title":357,"description":358,"tip":359},4,"Address benefits continuation and COBRA","State the date benefits terminate, whether the employer will subsidize COBRA premiums and for how many months, and the contact for COBRA election paperwork. If offering continued coverage, specify the dollar cap or duration clearly.","Do not promise a specific monthly subsidy without confirming the current plan premium — health insurance costs change annually and an understated figure creates a breach risk.",{"step":361,"title":362,"description":363,"tip":364},5,"Tailor the release of claims to the employee's profile","If the employee is 40 or older, include the full ADEA waiver language with a 21-day consideration period (45 days for a group RIF) and a 7-day revocation window. For younger employees, the standard general release applies without the extended timeline.","For any group layoff involving two or more employees aged 40 or older, you must also attach the OWBPA disclosure listing job titles and ages of all employees in the decisional unit — failure to do so invalidates every ADEA waiver in the group.",{"step":366,"title":367,"description":368,"tip":369},6,"Review and incorporate post-employment restrictions","If the original employment contract contained a non-compete, non-solicitation, or IP assignment clause, reference it explicitly and confirm it survives. Do not attempt to introduce new restrictions at this stage without providing separate additional consideration.","If you need a new non-compete signed at separation, consider adding a modest additional payment — even $500–$1,000 — as documented fresh consideration to support enforceability.",{"step":371,"title":372,"description":373,"tip":374},7,"Set the property return deadline and revocation mechanics","Specify the exact date by which company devices, documents, and credentials must be returned. State the revocation address and method clearly so the 7-day window is unambiguous for ADEA-covered employees.","Tie the first severance installment date to a date after the revocation period expires — this prevents payment before the agreement becomes irrevocable.",{"step":376,"title":377,"description":378,"tip":379},8,"Have both parties sign before the separation date","Present the agreement early enough that the employee has meaningful time to review it within the consideration period — not on their last day. Both parties must sign for the agreement to be binding.","Use a timestamped e-signature platform to document when the agreement was presented and when it was signed, creating a clear record of the consideration period.",[381,385,389,393,397,401],{"mistake":382,"why_it_matters":383,"fix":384},"Using a 21-day period for a group RIF instead of 45 days","The Older Workers Benefit Protection Act requires a 45-day consideration period any time two or more employees aged 40 or older are terminated in the same decisional unit. Using 21 days invalidates every ADEA waiver in the group, exposing the employer to class age-discrimination claims.","Identify the decisional unit before drafting, confirm whether the OWBPA 45-day rule applies, and attach the required statistical disclosure listing job titles and ages of affected and retained employees.",{"mistake":386,"why_it_matters":387,"fix":388},"Conditioning final wages on signing the severance agreement","In most US states, Canada, and the UK, final wages — including accrued vacation — are a statutory entitlement that cannot be withheld or delayed pending execution of a release. Doing so invalidates the release and exposes the employer to wage-theft claims.","Pay all earned wages and accrued benefits on the statutory deadline, separately and unconditionally. The severance payment is the new consideration for the release — not the wages already owed.",{"mistake":390,"why_it_matters":391,"fix":392},"Omitting the no-admission-of-liability clause","Without explicit language denying liability, opposing counsel in any related litigation can argue the payment itself is evidence of wrongdoing — complicating settlement of related claims and increasing insurance exposure.","Include a standard no-admission clause in the recitals and again near the signature block so its prominence is clear in the document.",{"mistake":394,"why_it_matters":395,"fix":396},"Introducing new restrictive covenants without fresh consideration","Courts in most jurisdictions will not enforce a non-compete or expanded non-solicitation clause added at termination if the only consideration is severance the employee was already owed or entitled to expect.","If new restrictions are necessary, document a specific additional payment — separate from and on top of the base severance — as the explicit consideration for those restrictions.",{"mistake":398,"why_it_matters":399,"fix":400},"Making the non-disparagement clause employee-only","California SB 331 (effective 2022) and similar statutes in other states require non-disparagement obligations to be mutual. A one-sided clause may be unenforceable and can trigger regulatory scrutiny.","Draft non-disparagement as mutual, binding both the employee and the company's officers and directors, while preserving both parties' right to provide truthful testimony in legal proceedings.",{"mistake":402,"why_it_matters":403,"fix":404},"Failing to attach the OWBPA statistical disclosure for group layoffs","For any RIF involving employees aged 40 or older, the OWBPA requires a written disclosure listing the ages and job titles of all employees in the decisional unit selected and not selected for the layoff. Missing this document voids the ADEA waiver for every affected employee, regardless of whether they individually reviewed the disclosure.","Prepare and attach the OWBPA disclosure as an exhibit before presenting any agreements to employees aged 40 or older in a group termination. Have employment counsel review it before distribution.",[406,409,412,415,418,421,424,427,430],{"question":407,"answer":408},"What is a severance package?","A severance package is a legally binding agreement between an employer and a departing employee that sets out the compensation, benefits, and obligations attached to the end of employment. It typically includes a severance payment calculated on years of service, continued health coverage or COBRA subsidy, a release of legal claims, and post-separation obligations such as confidentiality and non-disparagement. The employer pays severance in exchange for the employee's release of claims and agreement to cooperate with transition.\n",{"question":410,"answer":411},"Is severance pay legally required?","In the United States, federal law does not require severance pay — it is a matter of contract or company policy. However, if a company policy or employment contract promises severance, that promise is generally enforceable. In Canada, provincial employment standards laws set minimum notice or termination pay requirements that function as a statutory floor on severance. In the UK and EU, statutory redundancy pay and notice entitlements are legally mandated regardless of whether a written severance agreement exists.\n",{"question":413,"answer":414},"What is typically included in a severance package?","A complete severance package covers: the separation date and final pay logistics, severance pay calculated on a defined formula (commonly 1–4 weeks per year of service), benefits continuation or a COBRA subsidy, a general release of all employment-related claims, ADEA waiver language for employees aged 40 or older, non-disparagement and confidentiality obligations, return-of-property requirements, and governing law with an integration clause. Packages for senior employees often add extended vesting acceleration, bonus proration, and outplacement services.\n",{"question":416,"answer":417},"How is severance pay typically calculated?","The most common formula in the US is one to two weeks of base salary per year of service, with a minimum of two to four weeks. Senior employees typically negotiate higher multiples — four to eight weeks per year is not unusual at the director level or above. In Canada, common-law notice obligations (which severance is meant to satisfy) can reach one month per year of service for long-tenured employees. UK statutory redundancy pay uses a tiered formula based on age and years of service, with a weekly pay cap updated annually.\n",{"question":419,"answer":420},"Can an employee negotiate a severance package?","Yes. Severance offers are negotiable, particularly for senior employees, long-tenured staff, or in situations involving potential legal claims. Common negotiating points include increasing the severance multiplier, extending the COBRA subsidy period, accelerating vesting on unvested equity, adding outplacement services, and modifying the scope of the non-disparagement clause. Employees aged 40 or older have a statutory 21-day consideration period specifically to allow time for negotiation and legal review.\n",{"question":422,"answer":423},"What is an ADEA waiver and when is it required?","An ADEA waiver is a specific release of age discrimination claims under the Age Discrimination in Employment Act. It is required — and must meet specific statutory standards — any time the severance agreement releases claims for employees aged 40 or older. The waiver must be written in plain language, must specifically reference the ADEA, must advise the employee to consult an attorney, must provide a 21-day consideration period (45 days for group layoffs), and must allow a 7-day revocation window after signing. Agreements that omit any of these elements cannot release ADEA claims.\n",{"question":425,"answer":426},"Does a severance agreement prevent an employee from filing an EEOC charge?","No. A severance agreement cannot lawfully prohibit an employee from filing a charge with the EEOC or equivalent state agency, cooperating with an EEOC investigation, or participating in EEOC proceedings. However, a valid release can waive the employee's right to receive monetary damages from any resulting lawsuit. Include explicit carve-out language preserving these rights — omitting it risks the EEOC treating the release as unlawfully coercive, potentially voiding the entire agreement.\n",{"question":428,"answer":429},"What happens if an employee revokes a severance agreement?","For employees aged 40 or older, the ADEA provides an absolute 7-day revocation right after signing. If the employee revokes within that window, the agreement is void and no severance is owed — the employer keeps its money and the employee retains all claims. To protect the employer, structure the first severance payment to fall after the revocation window closes. For employees under 40, there is no statutory revocation right, though many agreements include a shorter contractual cooling-off period as a matter of fairness.\n",{"question":431,"answer":432},"Should a severance package be reviewed by a lawyer?","For most standard terminations involving salaried employees with no active legal claims, a high-quality template reviewed by HR is sufficient. Legal review is strongly recommended for terminations involving employees aged 40 or older (ADEA compliance), group layoffs triggering OWBPA and WARN Act obligations, executives with equity and complex severance entitlements, employees in heavily regulated industries, or any situation where the employee has already filed a complaint or hinted at litigation. A focused employment attorney review typically costs $400–$900 and is a sound investment against a wrongful termination claim.\n",[434,438,442,446,450,454],{"industry":435,"icon_asset_id":436,"specifics":437},"Technology / SaaS","industry-saas","Equity vesting acceleration clauses are standard for engineering and product leaders; IP assignment survival and source-code return obligations require explicit language in the agreement.",{"industry":439,"icon_asset_id":440,"specifics":441},"Financial Services","industry-fintech","Bonus clawback provisions, FINRA and FCA registration transition obligations, and garden leave during notice periods are common features that require tailored drafting.",{"industry":443,"icon_asset_id":444,"specifics":445},"Healthcare","industry-healthtech","HIPAA confidentiality obligations survive separation and must be incorporated by reference; clinical licensing and credentialing conditions may affect the separation date logistics.",{"industry":447,"icon_asset_id":448,"specifics":449},"Manufacturing","industry-manufacturing","Plant-closing and mass-layoff scenarios trigger WARN Act notice requirements; union collective bargaining agreements often set minimum severance formulas that override individually negotiated packages.",{"industry":451,"icon_asset_id":452,"specifics":453},"Professional Services","industry-professional-services","Client non-solicitation obligations are critical given direct client relationships; billing adjustment and timesheet finalization deadlines need to be addressed alongside the separation date.",{"industry":455,"icon_asset_id":456,"specifics":457},"Retail / Hospitality","industry-retail","High-volume RIF events require group OWBPA compliance; tip and gratuity accounting for final pay, and scheduling of final paychecks across multiple locations require operational coordination.",[459,463,466,470],{"vs":460,"vs_template_id":461,"summary":462},"Separation agreement","separation-agreement-D1069","A separation agreement documents the mutual end of an employment relationship and may or may not include a severance payment. A severance package specifically exchanges compensation for a release of claims and is typically employer-initiated. When both parties have unresolved grievances, a mutual separation agreement is the more appropriate vehicle; when the employer is simply offering a clean exit with pay, a severance package is the right document.",{"vs":464,"vs_template_id":239,"summary":465},"Employee termination letter","A termination letter notifies the employee that employment is ending and states the reason and effective date — it does not create a binding release of claims or document any consideration. A severance package is the binding agreement that follows a termination decision when compensation is being offered. Both documents are typically issued together, but they serve entirely different legal functions.",{"vs":467,"vs_template_id":468,"summary":469},"Settlement agreement","settlement-agreement-D13140","A settlement agreement resolves a specific existing or threatened legal dispute — discrimination, harassment, or wage claims — and is typically negotiated adversarially with both sides represented. A severance package is issued proactively at the point of separation, before a dispute is filed, to prevent litigation. Settlement agreements typically involve higher payments and more complex mutual releases than standard severance packages.",{"vs":471,"vs_template_id":472,"summary":473},"Employment contract","employment-agreement_at-will-employee-D541","An employment contract governs the entire employment relationship from hire through termination, and may include a pre-agreed severance formula as one of its clauses. A severance package is executed at the end of the relationship and operationalizes those terms — or negotiates new ones. The severance package supersedes the employment contract's termination provisions and should explicitly state this in the integration clause.",{"use_template":475,"template_plus_review":479,"custom_drafted":483},{"best_for":476,"cost":477,"time":478},"Standard at-will terminations for employees under 40 with no active claims and no equity complications","Free","30–60 minutes",{"best_for":480,"cost":481,"time":482},"Employees aged 40 or older, group layoffs of any size, or senior roles with equity and complex benefits","$400–$900","2–5 business days",{"best_for":484,"cost":485,"time":486},"Executive separations with equity acceleration and enhanced severance, WARN Act-triggering RIFs, or situations involving an active or threatened legal claim","$2,000–$8,000+","1–3 weeks",[488,493,498,503],{"code":489,"name":490,"flag_asset_id":491,"note":492},"us","United States","flag-us","Federal law does not mandate severance pay, but the OWBPA and ADEA impose strict procedural requirements for releasing age discrimination claims for employees aged 40 or older, including 21-day (or 45-day for group layoffs) consideration periods and a 7-day revocation window. The WARN Act requires 60 days' written notice for mass layoffs involving 100 or more employees. State laws vary sharply — California requires final wages on the last day of involuntary termination and restricts non-disparagement clauses under SB 331.",{"code":494,"name":495,"flag_asset_id":496,"note":497},"ca","Canada","flag-ca","Each province's Employment Standards Act sets minimum termination notice or pay in lieu — typically one week per year of service up to a provincial cap. Common-law notice obligations for long-tenured employees can significantly exceed statutory minimums and may reach one month per year of service in Ontario. Severance agreements must not pay less than the statutory floor, and releases of human rights claims require independent legal advice to be enforceable in most provinces. Quebec contracts must be in French for provincially regulated employers.",{"code":499,"name":500,"flag_asset_id":501,"note":502},"uk","United Kingdom","flag-uk","Statutory redundancy pay applies to employees with at least two years' continuous service, calculated on a tiered formula based on age and weekly pay up to a statutory cap updated annually. Settlement agreements (the UK equivalent of a US severance agreement with a release) must be in writing and the employee must receive independent legal advice for the waiver of tribunal claims to be valid — employers typically contribute to the cost of that advice. The first £30,000 of a genuine redundancy payment is generally tax-free.",{"code":504,"name":505,"flag_asset_id":506,"note":507},"eu","European Union","flag-eu","Severance entitlements vary widely by member state — France, Spain, and Italy mandate statutory severance calculated on years of service and salary, while Germany relies on social plan negotiations for collective redundancies. Most member states require works council consultation before individual or collective dismissals. Post-employment non-compete clauses generally require ongoing compensation paid to the employee during the restricted period — typically 25–100% of prior salary — to be enforceable. GDPR applies to any personal data processed in connection with the separation.",[509,239,472,246,243,510,511,512,513,514,515,516],"separation-agreement-D13184","employment-agreement-executive-D543","non-disclosure-agreement-nda-D12692","letter-of-appreciation-to-employee-D664","independent-contractor-agreement-D160","job-offer-letter-long-D12769","general-non-compete-agreement-D882","employee-handbook-D712",{"emit_how_to":192,"emit_defined_term":192},{"primary_folder":111,"secondary_folder":519,"document_type":520,"industry":521,"business_stage":522,"tags":523,"confidence":529},"offboarding-and-references","agreement","general","all-stages",[524,525,526,527,528],"termination","offboarding","employment","severance","separation-agreement",0.95,"\u003Ch2>What is a Severance Package?\u003C/h2>\n\u003Cp>A \u003Cstrong>Severance Package\u003C/strong> is a legally binding agreement executed at the end of employment in which an employer provides compensation and benefits to a departing employee in exchange for a signed release of legal claims arising from the employment relationship. It documents the severance pay amount and payment schedule, benefits continuation terms, post-separation obligations such as confidentiality and non-disparagement, property return requirements, and the governing law that controls the agreement. Unlike a termination letter — which simply notifies the employee that employment is ending — a severance package creates enforceable contractual obligations on both sides and, when properly executed, closes out the legal relationship cleanly and completely.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Without a properly drafted severance agreement, every departure is a potential lawsuit waiting to be filed. An employee who receives a check with no corresponding release retains the right to sue for wrongful termination, discrimination, unpaid wages, harassment, or any other employment claim — for the full statutory limitations period, which runs two to five years in most US states and longer in some jurisdictions. A signed release of claims, supported by documented consideration and executed in compliance with the ADEA for employees aged 40 or older, eliminates that exposure in exchange for a payment you control. The agreement also preserves your confidentiality and non-disparagement protections, ensures company property and data access are returned on a defined schedule, and creates a clear paper trail if post-separation disputes arise. For HR teams managing multiple separations, a standard template also enforces consistency — preventing the ad hoc variation in severance terms that generates disparate-impact claims. This template gives you a compliant, complete starting point that covers every material obligation in a single Word document you can execute and store in minutes.\u003C/p>\n",1781185967544]