[{"data":1,"prerenderedAt":525},["ShallowReactive",2],{"document-severance-pay-agreement-D12863":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":524},{"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 PAY AGREEMENT This Severance Pay Agreement (the \"Agreement\") is effective [DATE] (\"Effective Date\"), BETWEEN: [YOUR COMPANY NAME] (the \"Company\"), 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 \"Employee\"), an individual resident at: [COMPLETE ADDRESS] WHEREAS the Parties have agreed that it is in mutual interest that the Employee separates from the Company as of [DATE]; WHEREAS the Employee acknowledges that the payment made to him under the Agreement is being made for the sole purpose of avoiding uncertainties and expense of litigation; WHEREAS the Parties wish to evidence their contract in writing; WHEREAS the Parties are duly authorized and have the capacity to enter into and perform this Agreement; WHEREAS both the Parties affirm to understand all the provisions contained in this Agreement, and in case either Party requires clarification as to one or more of the provisions contained herein, either Party has requested clarification or otherwise sought legal guidance; The Company and the Employee shall individually be referred to as \"Party\" and collectively as \"Parties.\" IN CONSIDERATION OF COVENANTS AND AGREEMENTS CONTAINED HEREIN, THE PARTIES HERETO AGREE TO THE FOLLOWING TERMS AND CONDITIONS: DEFINITIONS \"Employment Agreement\" refers to the Agreement executed between the Employee and the Company outlining the rights, responsibilities, duties, and employment conditions that make up the legal relationship between the Company and the Employee. \"Property\" refers to all the assets and products provided by the Company to the Employee to facilitate the Employee in furnishing its roles and responsibilities. \"Severance Compensation\" refers to the total amount paid by the Company to its Employee which exceeds the minimum payments as prescribed by the applicable laws. \"Separation Date\" is the employment termination date for the Employee for all purposes. SEVERANCE In exchange for the release and covenant not to sue set forth below, the Company will pay the Employee the Severance Compensation, subject to the terms and conditions of this Agreement. COMPENSATION UPON TERMINATION Termination Without Cause; With Good Reason: If the Employee's employment is terminated by the Company without cause or by the Employee with good reason during the employment period, the Company shall provide to the Employee the Accrued Obligations, Severance Compensation, and Other Benefits. Termination for Cause; Without Good Reason: If the Employee's employment is terminated by the Company for cause or by the Employee without good reason during the employment period, the Company shall provide to the Employee the Accrued Obligations and shall have no other severance obligations under this Agreement. Accrued Obligations: \"Accrued Obligations\" shall mean the sum of the following unpaid benefits as of the Separation Date: payment of any earned but unpaid portion of the Employee's annual base salary as in effect from time to time (\"Base Salary\") through the effective date of such termination; reimbursement for any reasonable, unreimbursed and documented business expense he/she has incurred in performing the Employee's duties hereunder; the right to elect continuation coverage of insurance benefits to the extent required by law; and payment of any accrued but unpaid benefits (including, without limitation, any bonus due by virtue of having met all applicable performance targets prior to the effective date of such termination), and any other rights, as required by the terms of any employee benefit plan or program of the Company. Payment of Accrued Obligations: All Accrued Obligations shall be paid to the Employee in a lump sum in cash within [NUMBER OF DAYS] days of the Payment Date [or Separation Date]. The Company shall pay the Employee an amount of [TOTAL AMOUNT] representing gross payment from [PAY START DATE] to [PAY END DATE]. The payments as mentioned in this section shall be subject to all applicable federal and state tax and shall be made within [NUMBER OF DAYS] days from the Separation Date. Other Benefits: \"Other Benefits\" shall mean, as of the [or Separation Date]: Equity Awards: The Employee's rights to vesting of any outstanding Stock options, restricted Stock awards and other equity incentive awards (\"Equity-Based Awards\") and rights to exercise any outstanding Equity-Based Awards, shall continue throughout the Severance Period in the same manner as if the Employee continued to serve as an Employee of the Company during such Severance Period; \"Equity Awards\" shall consist of (a) shares of the capital Stock of the Company (\"Stock\"), (b) options and other rights to purchase shares of Stock, (c) Stock units, performance units or phantom shares whose value is measured by the value of shares of Stock, and (d) Stock appreciation rights whose value is measured by increases in the value of shares of Stock. Welfare Benefit Plans: If the Employee elects to continue health insurance coverage under the Consolidated Omnibus Budget Reconciliation Act (\"COBRA\"), the Company shall pay the [Company] portion of the monthly premium under COBRA for the Employee, and, if applicable, the Employee's dependents until the earliest of: the close of the Continuation Period, the expiration of the Employee's continuation coverage under COBRA, or the date when the Employee receives substantially equivalent health insurance coverage in connection with new employment or self-employment. Severance Compensation: Immediately following the expiration of the Revocation Period, the Company shall provide the Employee with severance benefits of [TOTAL COMPENSATION] (the \"Severance Compensation\") provided however, that the Severance Compensation will not be due or made if the Employee revokes this Agreement during the Revocation Period. The payment includes all benefits, as mentioned above, which are or may be claimed to be accrued or due and owing to the Employee under the laws of the [State/Province] of [STATE/PROVINCE], and any and all other applicable countries or locations, and under any employment agreement with or severance or separation pay plan maintained by the Company. The offer of payment of Severance Compensation to the Employee by the Company is contingent on (a) the Employee's first having signed this Agreement, and (b) the Employee receiving any unpaid vacation entitlements for the calendar year [YEAR ] and any vacation entitlements for [YEAR] on a pro-rata basis. LIABILITIES The Employee hereby releases and forever releases the Company, as well as all partners, employees, directors, consultants, insurers from any claims, demands, causes of action, obligations, damages, liabilities and charges which may have arisen during the employment period. The Employee states they have not nor will they file a lawsuit for any of the following prior to or after this Agreement for: all laws in regard to the discovery or claim of wrongful termination; violation of public policy; all compensation claims, including back wages, commission, front pay, pay increases, bonuses, disability benefits, retirement compensation, or reinstatement fees; personal injury claims, including mental, physical, emotional, humiliation, or damage to name. If the Employee files a lawsuit based on legal claims that the Employee has released, the Employee will pay for all costs incurred by the Company, any related companies or the directors or employees of any of them, including reasonable attorneys' fees, in defending against the Employee's claim. Nothing in this clause shall be construed or intended to waive or limit the Employee's rights to enforce any and all terms of this Agreement. Furthermore, the Company has not violated any legal obligations and has made no acceptance of such by entering into these terms. 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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":110,"description":6},"employee dismissal letter",[112,113],{"label":18,"url":96},{"label":98,"url":99},"/template/employee-dismissal-letter-D508",{"description":116,"descriptionCustom":6,"label":117,"pages":8,"size":9,"extension":10,"preview":118,"thumb":119,"svgFrame":120,"seoMetadata":121,"parents":123,"keywords":122,"url":131},"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","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":122,"description":6},"employment agreement_at will employee",[124,125,128],{"label":18,"url":96},{"label":126,"url":127},"Hire an Employee","hire-employee",{"label":129,"url":130},"Legal Agreements","business-legal-agreements","/template/employment-agreement_at-will-employee-D541",{"description":133,"descriptionCustom":6,"label":134,"pages":135,"size":9,"extension":10,"preview":136,"thumb":137,"svgFrame":138,"seoMetadata":139,"parents":141,"keywords":140,"url":146},"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":140,"description":6},"non disclosure agreement nda",[142,143],{"label":129,"url":130},{"label":144,"url":145},"Confidentiality Agreements","confidentiality-agreement","/template/non-disclosure-agreement-nda-D12692",{"description":148,"descriptionCustom":6,"label":149,"pages":88,"size":9,"extension":10,"preview":150,"thumb":151,"svgFrame":152,"seoMetadata":153,"parents":155,"keywords":154,"url":158},"[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","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":154,"description":6},"job offer letter long",[156,157],{"label":18,"url":96},{"label":126,"url":127},"/template/job-offer-letter-long-D12769",{"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":96},{"label":126,"url":127},{"label":129,"url":130},"employment agreement executive","/template/employment-agreement-executive-D543",false,{"seo":176,"reviewer":187,"legal_disclaimer":191,"quick_facts":192,"at_a_glance":194,"personas":198,"variants":223,"glossary":251,"clauses":285,"how_to_fill":336,"common_mistakes":377,"faqs":402,"industries":430,"comparisons":455,"diy_vs_lawyer":469,"jurisdictions":482,"related_template_ids_curated":503,"schema":511,"classification":512},{"meta_title":177,"meta_description":178,"primary_keyword":179,"secondary_keywords":180},"Severance Pay Agreement Template (Free Word)","Free severance pay agreement template for employers. Covers final pay, benefits continuation, release of claims, and non-disparagement. Used in 190+ countries. Free Word and PDF download.","severance pay agreement template",[181,182,183,184,185,186],"severance pay agreement template word","severance agreement template free","employee severance agreement","severance package agreement","termination and severance agreement","severance release agreement",{"name":188,"credential":189,"reviewed_date":190},"Bruno Goulet","CEO, Business in a Box","2026-05-02",true,{"difficulty":193,"legal_review_recommended":191,"signature_required":191,"notarization_required":174},"advanced",{"what_it_is":195,"when_you_need_it":196,"whats_inside":197},"A Severance Pay Agreement is a legally binding contract between an employer and a departing employee that defines the compensation and benefits the employee will receive upon separation and, in exchange, secures a release of legal claims against the employer. This template is a free Word download you can edit online and export as PDF — covering severance amount, payment schedule, benefits continuation, confidentiality, non-disparagement, and a full release of claims in a single document.\n","Use it when terminating an employee without cause, conducting a layoff or reduction in force, or negotiating a mutual separation where both parties want a clean, documented exit. It is also appropriate when an employee resigns under disputed circumstances and the employer wants a release before paying any exit package.\n","Severance amount and payment schedule, COBRA and benefits continuation terms, a release and waiver of all employment-related claims, confidentiality and non-disparagement obligations, return of company property, references to any surviving restrictive covenants, and the governing law and review period disclosures required by the ADEA for employees over 40.\n",[199,203,207,211,215,219],{"title":200,"use_case":201,"icon_asset_id":202},"HR managers","Documenting and standardizing exit packages during layoffs or terminations","persona-hr-manager",{"title":204,"use_case":205,"icon_asset_id":206},"Small business owners","Releasing legal liability when parting ways with a long-tenured employee","persona-small-business-owner",{"title":208,"use_case":209,"icon_asset_id":210},"Operations directors","Managing a reduction in force while limiting wrongful termination exposure","persona-operations-director",{"title":212,"use_case":213,"icon_asset_id":214},"Startup founders","Structuring a clean co-founder or early-employee exit without litigation risk","persona-startup-founder",{"title":216,"use_case":217,"icon_asset_id":218},"Corporate counsel","Templating consistent severance terms across a large-scale workforce reduction","persona-corporate-counsel",{"title":220,"use_case":221,"icon_asset_id":222},"Finance executives","Ensuring severance accruals and payment timing align with financial reporting","persona-cfo",[224,228,232,236,240,244,248],{"situation":225,"recommended_template":226,"slug":227},"Terminating an employee over 40 in the United States","Severance Pay Agreement (ADEA-compliant)","severance-pay-agreement-D12863",{"situation":229,"recommended_template":230,"slug":231},"Laying off a group of employees simultaneously","WARN Act Layoff Notice + Group Severance Agreement","severance-agreement-D525",{"situation":233,"recommended_template":234,"slug":235},"Executive departure with equity, clawback, or enhanced severance","Executive Separation Agreement","separation-agreement-D13184",{"situation":237,"recommended_template":238,"slug":239},"Mutual separation where the employee resigns under disputed terms","Mutual Separation Agreement","mutual-termination-of-contract-D513",{"situation":241,"recommended_template":242,"slug":243},"Ending a fixed-term contract before the agreed end date","Contract Termination Agreement","termination-agreement-D13787",{"situation":245,"recommended_template":246,"slug":247},"Separating an independent contractor rather than an employee","Independent Contractor Termination Letter","acknowledgment-of-independent-contractor-D138",{"situation":249,"recommended_template":104,"slug":250},"Documenting a no-severance termination for cause","employee-dismissal-letter-D508",[252,255,258,261,264,267,270,273,276,279,282],{"term":253,"definition":254},"Release of Claims","A contractual waiver in which the employee gives up the right to sue the employer for any employment-related legal claims in exchange for the severance payment.",{"term":256,"definition":257},"ADEA (Age Discrimination in Employment Act)","A US federal law protecting employees 40 and older from age-based discrimination; it imposes specific disclosure, review period, and revocation rights on any severance agreement that waives ADEA claims.",{"term":259,"definition":260},"OWBPA (Older Workers Benefit Protection Act)","A US law amending the ADEA that requires severance agreements to give employees over 40 at least 21 days to consider the agreement and 7 days to revoke after signing.",{"term":262,"definition":263},"COBRA","A US federal law allowing employees to continue employer-sponsored health coverage after separation, typically at their own expense, for up to 18 months.",{"term":265,"definition":266},"Non-Disparagement Clause","A mutual or one-sided obligation preventing one or both parties from making negative public statements about the other after separation.",{"term":268,"definition":269},"Severance Formula","The method used to calculate the severance amount — commonly expressed as a number of weeks' pay per year of service, subject to a minimum and maximum.",{"term":271,"definition":272},"Garden Leave","A notice period during which the departing employee is paid their full salary but released from active duties and barred from the workplace or systems.",{"term":274,"definition":275},"Clawback Provision","A clause requiring the employee to repay some or all of the severance if they breach the agreement — for example, by violating confidentiality or non-disparagement terms.",{"term":277,"definition":278},"Consideration","The legal requirement that both parties exchange something of value for a contract to be enforceable — in severance, the employer's payment is consideration for the employee's release of claims.",{"term":280,"definition":281},"Integration Clause","A provision stating that the written agreement is the complete and final record of the parties' deal, superseding any prior verbal or written promises about the exit package.",{"term":283,"definition":284},"Statutory Minimum Severance","The minimum termination pay or notice required by law in a given jurisdiction — contractual severance cannot fall below this floor, but may exceed it.",[286,291,296,301,306,311,316,321,326,331],{"name":287,"plain_english":288,"sample_language":289,"common_mistake":290},"Parties, employment history, and separation date","Identifies the employer and employee as legal entities, records the employee's position and length of service, and states the official last day of employment.","This Severance Pay Agreement is entered into as of [DATE] between [EMPLOYER LEGAL NAME], a [STATE] [ENTITY TYPE] ('Company'), and [EMPLOYEE FULL NAME] ('Employee'). Employee was employed as [JOB TITLE] from [START DATE] through [SEPARATION DATE] ('Separation Date').","Using a trade name instead of the registered legal entity name. If the employer's name on the agreement doesn't match payroll records, enforcing the release or clawback in court becomes procedurally complicated.",{"name":292,"plain_english":293,"sample_language":294,"common_mistake":295},"Severance payment amount and schedule","States the total severance amount, how it is calculated (e.g., 2 weeks per year of service), when payments begin, how frequently they are made, and whether they are subject to standard payroll deductions.","In consideration of Employee's execution of this Agreement, Company shall pay Employee a severance amount of $[AMOUNT], equivalent to [X] weeks of base salary at Employee's final rate of $[WEEKLY RATE]/week, paid in equal installments on Company's regular payroll schedule beginning [DATE], subject to applicable withholding and deductions.","Failing to specify whether the severance amount is gross or net, and whether it is subject to standard tax withholding. Employees who expect a net figure and receive a gross payment frequently dispute the shortfall.",{"name":297,"plain_english":298,"sample_language":299,"common_mistake":300},"Benefits continuation","Addresses health, dental, and vision coverage after separation — whether the employer will continue to pay premiums for a defined period, the employee's COBRA election rights, and any other ongoing benefits such as life insurance or EAP.","Company shall continue Employee's group health coverage under its existing plan through [DATE] at Company's expense. Thereafter, Employee may elect continued coverage under COBRA. Company will notify Employee of COBRA election rights and deadlines separately.","Promising to 'maintain benefits' without specifying an end date or cost-split. Open-ended benefit continuation language creates indefinite liability and conflicts with plan documents.",{"name":302,"plain_english":303,"sample_language":304,"common_mistake":305},"Release and waiver of claims","The core exchange of the agreement: the employee releases all known and unknown employment-related legal claims — discrimination, harassment, wage and hour, breach of contract — in return for the severance payment.","In consideration of the payments described herein, Employee releases and forever discharges Company and its officers, directors, employees, and agents from any and all claims, known or unknown, arising from or related to Employee's employment or separation, including but not limited to claims under Title VII, the ADEA, the ADA, the FLSA, and applicable state law.","Using an overly broad release that attempts to waive claims that cannot legally be waived — such as future workers' compensation claims, NLRA rights, or EEOC charge-filing rights. An overbroad release can void the entire agreement in some jurisdictions.",{"name":307,"plain_english":308,"sample_language":309,"common_mistake":310},"ADEA and OWBPA disclosures (employees 40+)","For employees 40 and older in the US, discloses the specific rights and time periods required by federal law: 21 days to consider the agreement, 7 days to revoke after signing, and a statement that the employee is advised to consult an attorney.","Employee acknowledges that: (a) this Agreement includes a waiver of rights under the ADEA; (b) Employee has been advised to consult an attorney before signing; (c) Employee has [21] days to consider this Agreement; and (d) Employee may revoke this Agreement within 7 days of signing by written notice to [HR CONTACT].","Omitting ADEA disclosures for employees aged 40 and over because the HR team assumed the employee was younger. ADEA non-compliance voids the age-discrimination waiver, exposing the company to the very claims the release was meant to eliminate.",{"name":312,"plain_english":313,"sample_language":314,"common_mistake":315},"Confidentiality of agreement terms","Prohibits both parties from disclosing the existence or terms of the agreement to third parties, with standard carve-outs for attorneys, accountants, immediate family, and governmental authorities.","Employee agrees to keep the terms of this Agreement strictly confidential and not to disclose them to any third party except Employee's spouse, attorney, or financial advisor, or as required by law, provided that any such permitted recipient agrees to maintain the same confidentiality.","Drafting a one-sided confidentiality clause that binds only the employee. Employers who later publicize the terms — even internally — can face claims that they breached the agreement and triggered the employee's right to sue on the underlying claims.",{"name":317,"plain_english":318,"sample_language":319,"common_mistake":320},"Non-disparagement","Obligates the employee not to make negative, disparaging, or harmful statements about the company, its leadership, or its products — and often includes a reciprocal obligation from the employer.","Employee agrees not to make any statement, oral or written, that disparages Company, its products, services, or current or former officers, directors, or employees. Company agrees that its officers and HR personnel will not make disparaging statements about Employee.","Failing to include a reciprocal employer-side obligation. Without it, a negative reference call from a manager can undermine the settlement and give the employee grounds to argue the agreement was breached in bad faith.",{"name":322,"plain_english":323,"sample_language":324,"common_mistake":325},"Return of company property","Requires the employee to return all company property — devices, access credentials, documents, and confidential materials — by a specific date, and confirms that the employee has no outstanding personal property on company premises.","By [DATE], Employee shall return all Company property in Employee's possession, including laptop serial no. [SERIAL], access badges, client files, and any copies of confidential information in any format. Employee confirms that no Company property remains on personal devices.","Not specifying a return deadline or listing the items to be returned. Vague property return obligations are routinely ignored and leave the employer unable to enforce them without a second legal action.",{"name":327,"plain_english":328,"sample_language":329,"common_mistake":330},"Surviving covenants and post-employment restrictions","Confirms which obligations from the original employment contract survive separation and remain in force — typically confidentiality, non-solicitation, and any valid non-compete — and incorporates them by reference.","Employee acknowledges that the confidentiality, non-solicitation, and intellectual property assignment obligations in Employee's Employment Agreement dated [DATE] remain in full force and effect following the Separation Date and are incorporated herein by reference.","Neglecting to reference surviving covenants entirely, which can create ambiguity about whether the employee believes prior restrictions were released as part of the severance deal.",{"name":332,"plain_english":333,"sample_language":334,"common_mistake":335},"Governing law, dispute resolution, and integration","Specifies which jurisdiction's law governs the agreement, how disputes are resolved (arbitration or court), and includes an integration clause confirming this document supersedes all prior representations about the exit terms.","This Agreement is governed by the laws of [STATE/PROVINCE/COUNTRY]. Any dispute shall be resolved by binding arbitration in [CITY] under [AAA/JAMS] rules, except claims for injunctive relief. This Agreement constitutes the entire agreement between the parties regarding Employee's separation and supersedes all prior negotiations and representations.","Selecting a governing law with no connection to the employee's actual work location. Several jurisdictions — including California — apply local law regardless of contractual choice-of-law provisions, invalidating non-competes and limiting release scope.",[337,342,347,352,357,362,367,372],{"step":338,"title":339,"description":340,"tip":341},1,"Enter the legal entity names and employment history","Use the employer's full registered corporate name — not a brand or trade name — and the employee's legal name as it appears on payroll records. Record the job title, department, and exact start and separation dates.","Cross-check the employer's legal name against the original employment contract and payroll system to ensure all three documents are consistent.",{"step":343,"title":344,"description":345,"tip":346},2,"Calculate and document the severance amount","Apply your company's severance formula (e.g., 2 weeks per year of service) to the employee's years of service and final base salary. State the gross total, the payment schedule, and confirm that standard payroll deductions apply.","Verify the calculated amount meets or exceeds the statutory minimum for the employee's work location before documenting it — the formula does not override the legal floor.",{"step":348,"title":349,"description":350,"tip":351},3,"Specify benefits continuation terms and COBRA details","State the exact date employer-paid benefits end, which plans are covered, and reference the COBRA election notice the employee will receive separately. If you are paying COBRA premiums for a defined period, specify the number of months and the coverage plans.","Do not promise to maintain specific benefit levels — reference 'coverage under the current plan as in effect' to avoid liability if plan terms change before the continuation period ends.",{"step":353,"title":354,"description":355,"tip":356},4,"Draft the release of claims to the appropriate scope","List the specific statutes being released that are relevant to the jurisdiction and the employee's protected class characteristics. Remove any attempt to waive NLRA rights, EEOC charge-filing rights, vested pension benefits, or future workers' compensation claims — these cannot legally be released.","A release drafted too broadly is more dangerous than one drafted too narrowly. Courts can void the entire agreement — not just the overbroad clause — if they find it impermissibly restricts non-waivable rights.",{"step":358,"title":359,"description":360,"tip":361},5,"Add ADEA and OWBPA disclosures if the employee is 40 or older","Insert the mandatory 21-day review period, 7-day revocation window, and the statement advising the employee to consult an attorney. For group reductions in force, the review period extends to 45 days and requires specific information about the decisional unit.","Document the date you delivered the agreement to the employee — the 21-day clock starts on delivery, not on the date of the agreement.",{"step":363,"title":364,"description":365,"tip":366},6,"Confirm surviving post-employment obligations","Reference the employee's original employment agreement by date and list the specific covenants that survive — confidentiality, non-solicitation, IP assignment. Attach the relevant sections as an exhibit if the covenants are detailed.","Never assume the employee remembers their post-employment restrictions. A written acknowledgment in the severance agreement reduces enforcement disputes significantly.",{"step":368,"title":369,"description":370,"tip":371},7,"Set the return-of-property deadline and asset list","Specify every item to be returned — laptop serial number, mobile device, access badges, paper files, and remote-access credentials — and set a firm return date at or before the separation date.","Pair the return obligation with an IT off-boarding checklist signed on the last day. Physical acknowledgment of return is far easier to enforce than a contractual promise alone.",{"step":373,"title":374,"description":375,"tip":376},8,"Execute before or on the separation date","Both parties must sign the agreement before or on the last day of employment. The employee's review period must be respected — do not pressure signature before the 21-day window expires for employees over 40.","Use a timestamped electronic signature platform to create an auditable record of when the agreement was delivered, reviewed, and signed by each party.",[378,382,386,390,394,398],{"mistake":379,"why_it_matters":380,"fix":381},"Severance amount falls below statutory minimums","In Canada, the UK, and many EU member states, contractual severance cannot be less than the statutory floor. An agreement that pays less is void to the extent of the shortfall — and the employer may owe the higher statutory amount plus penalties.","Before drafting the payment clause, calculate the statutory minimum for the employee's jurisdiction based on tenure and weekly pay. The contractual amount must equal or exceed that floor.",{"mistake":383,"why_it_matters":384,"fix":385},"Omitting ADEA disclosures for employees aged 40 and over","Without the mandatory 21-day review period, 7-day revocation window, and attorney-consultation notice, the waiver of age discrimination claims is legally void under the OWBPA — eliminating the primary protection the agreement was designed to provide.","Apply ADEA and OWBPA disclosures to any agreement involving an employee who is 40 or older at the time of separation, regardless of whether age is a factor in the termination.",{"mistake":387,"why_it_matters":388,"fix":389},"Release attempts to waive non-waivable rights","Courts in the US and EU have voided entire severance agreements — not just the offending clause — when they find the release attempts to bar EEOC charges, NLRA rights, or vested pension claims. The employer loses all protections of the agreement.","Limit the release to known and unknown employment-related claims that are legally waivable. Expressly carve out EEOC charge-filing rights, NLRA Section 7 rights, workers' compensation claims, and vested retirement benefits.",{"mistake":391,"why_it_matters":392,"fix":393},"No clawback provision for breach of post-employment obligations","Without a clawback clause, an employee who immediately violates confidentiality or non-solicitation terms has no financial disincentive — and the employer has no contractual basis to recover the severance already paid.","Include a clawback provision requiring the employee to repay the severance, less the statutory minimum, if they materially breach any surviving covenant within a defined period after separation.",{"mistake":395,"why_it_matters":396,"fix":397},"Agreement signed after the separation date without fresh consideration","In common-law jurisdictions, a release signed after the employee has already been separated and received their final pay may lack consideration — meaning the employee gave nothing new in exchange for what they already received. Courts have refused to enforce releases on this basis.","Ensure the agreement is presented to the employee before or on the last day of employment, and that the severance payment is clearly contingent on execution. If the timeline slips, add a documented additional benefit as fresh consideration.",{"mistake":399,"why_it_matters":400,"fix":401},"Benefits continuation clause has no defined end date","Open-ended benefits continuation language — such as 'Company will maintain benefits during the transition' — can be read as a continuing obligation that outlasts the intended period, creating indefinite premium liability.","State the exact calendar date on which employer-paid benefits end, name each plan included, and confirm that COBRA election rights begin the day after that date.",[403,406,409,412,415,418,421,424,427],{"question":404,"answer":405},"What is a severance pay agreement?","A severance pay agreement is a legally binding contract between an employer and a departing employee that defines the compensation, benefits, and obligations associated with the end of the employment relationship. In exchange for the severance payment, the employee typically waives the right to bring legal claims against the employer arising from their employment or termination. It creates enforceable obligations on both parties and documents the complete terms of the exit.\n",{"question":407,"answer":408},"Is severance pay required by law?","In the US, there is no federal law requiring private employers to pay severance — it is contractual or discretionary. However, in Canada, the UK, and most EU member states, statutory minimum termination pay or notice is required by law regardless of whether a formal severance agreement exists. Even in the US, an employer who has a written severance policy or who pays severance to similarly situated employees may be contractually obligated to pay it under implied contract theory.\n",{"question":410,"answer":411},"What must a severance agreement include to be enforceable?","At minimum, an enforceable severance agreement must identify both parties, state the severance amount and payment schedule, include a valid release of claims supported by consideration, and be signed voluntarily. For US employees aged 40 and older, it must also include ADEA and OWBPA disclosures — including 21 days to review, 7 days to revoke, and a written recommendation to consult an attorney. Missing any of these elements can void the release or the entire agreement.\n",{"question":413,"answer":414},"Can an employee negotiate a severance package?","Yes. Severance amounts, payment timing, benefits continuation periods, non-disparagement terms, and reference language are all typically negotiable. Employees with strong wrongful termination claims, long tenure, or specialized knowledge generally have the most leverage. Employers are not required to negotiate, but doing so often results in a faster, cleaner separation and reduces litigation risk. Any agreed changes should be documented in a written amendment or a restated agreement.\n",{"question":416,"answer":417},"What claims does a severance agreement release?","A standard release covers all known and unknown employment-related claims — discrimination (Title VII, ADEA, ADA), harassment, retaliation, wage and hour disputes, breach of employment contract, and similar state-law claims. Certain rights cannot be released regardless of what the agreement says: EEOC charge-filing rights, NLRA Section 7 rights, vested pension or 401(k) benefits, and future workers' compensation claims. An agreement that attempts to waive non-waivable rights risks being voided in its entirety.\n",{"question":419,"answer":420},"How much time does an employee have to review a severance agreement?","Under US law, employees aged 40 and older must receive at least 21 days to consider a severance agreement that waives ADEA claims, and 7 days to revoke after signing. For group layoffs, the review period extends to 45 days and requires additional disclosures about the decisional unit. There is no federal minimum review period for employees under 40, but best practice is to provide at least 5 business days. In the UK and Canada, courts evaluate whether the employee had meaningful opportunity to take independent legal advice.\n",{"question":422,"answer":423},"Does a severance agreement need to be notarized?","Notarization is not required for a standard severance pay agreement to be enforceable in the US, Canada, the UK, or the EU. A witnessed or electronically signed agreement is generally sufficient. Some employers choose to have the agreement witnessed as an additional layer of evidence that the employee signed voluntarily, but this is a practical precaution rather than a legal requirement.\n",{"question":425,"answer":426},"What happens if an employee violates a severance agreement?","If an employee breaches a material term — such as disclosing confidential settlement terms, making disparaging statements, or violating a surviving non-solicitation clause — the employer may seek damages, injunctive relief, or repayment of the severance under a clawback provision if one exists. However, the employer generally cannot unilaterally rescind the release of claims once the revocation period has expired. Courts assess each breach individually, so material breaches are more actionable than technical ones.\n",{"question":428,"answer":429},"Can a severance agreement include a non-compete?","A severance agreement can reference or reaffirm a non-compete clause from the original employment contract, but courts will not enforce a new non-compete that was not part of the original employment agreement unless separate consideration beyond the statutory minimum severance is provided. Enforceability also depends heavily on jurisdiction — California bans most post-employment non-competes, and several EU countries require additional financial compensation for any restriction that limits future employment.\n",[431,435,439,443,447,451],{"industry":432,"icon_asset_id":433,"specifics":434},"Technology / SaaS","industry-saas","IP assignment reaffirmation and access credential revocation are critical given that departing engineers may retain copies of source code or customer data without an explicit post-separation acknowledgment.",{"industry":436,"icon_asset_id":437,"specifics":438},"Financial Services","industry-fintech","Regulatory licensing obligations, FINRA and FCA registration surrender requirements, and bonus clawback provisions tied to deferred compensation or unvested equity need explicit treatment in the agreement.",{"industry":440,"icon_asset_id":441,"specifics":442},"Healthcare","industry-healthtech","HIPAA confidentiality obligations survive separation and must be incorporated by reference; patient non-solicitation clauses are standard for clinical staff with direct patient relationships.",{"industry":444,"icon_asset_id":445,"specifics":446},"Professional Services","industry-professional-services","Client non-solicitation periods are the most contested clause in professional services separations, given that departing partners or senior advisors often have direct and portable client relationships.",{"industry":448,"icon_asset_id":449,"specifics":450},"Retail / Hospitality","industry-retail","High turnover and wage-and-hour exposure make clean releases particularly valuable; severance amounts are typically modest and the agreement must still comply with state wage-payment laws governing final paycheck timing.",{"industry":452,"icon_asset_id":453,"specifics":454},"Manufacturing","industry-manufacturing","WARN Act compliance for plant closings or mass layoffs affecting 50 or more employees must be coordinated with individual severance agreements to avoid conflicting notice and payment obligations.",[456,459,461,465],{"vs":238,"vs_template_id":457,"summary":458},"mutual-separation-agreement-D13297","A mutual separation agreement documents a consensual parting where both parties agree to end the relationship — neither party is formally 'terminating' the other. A severance pay agreement is typically employer-initiated and places greater emphasis on the release of claims in exchange for a payment. When the separation is genuinely mutual, the mutual separation agreement is appropriate; when the employer is ending the relationship unilaterally, a severance pay agreement provides clearer legal protections.",{"vs":104,"vs_template_id":250,"summary":460},"A dismissal letter communicates the termination decision and its reasons but creates no binding obligations and provides no release of claims. A severance pay agreement is a bilateral contract signed by both parties that exchanges payment for legal protections. The dismissal letter triggers the separation; the severance pay agreement documents and closes it. Terminations for cause typically use a dismissal letter alone; terminations without cause benefit from both documents.",{"vs":462,"vs_template_id":463,"summary":464},"Employment Contract","employment-agreement_at-will-employee-D541","An employment contract governs the beginning and duration of the working relationship — duties, compensation, and restrictive covenants. A severance pay agreement governs the end of that relationship — exit payments, release of claims, and post-employment obligations. The employment contract may contain a severance formula that the severance pay agreement then operationalizes. Both documents should be consistent with each other on surviving covenants and governing law.",{"vs":466,"vs_template_id":467,"summary":468},"Non-Disclosure Agreement","non-disclosure-agreement-nda-D12692","A standalone NDA creates confidentiality obligations before or during employment; it does not include a release of claims or severance payment. A severance pay agreement typically incorporates post-employment confidentiality obligations within the broader exit package. When a departing employee had access to particularly sensitive information, some employers execute both documents — the severance agreement for the release and the NDA for detailed confidentiality terms that survive the severance agreement's general provisions.",{"use_template":470,"template_plus_review":474,"custom_drafted":478},{"best_for":471,"cost":472,"time":473},"Standard domestic separations for non-executive employees in a single US state or Canadian province where the severance amount is modest and no discrimination claim is anticipated","Free","30–45 minutes",{"best_for":475,"cost":476,"time":477},"Employees over 40 requiring ADEA compliance, cross-border separations, group layoffs, or situations where the employee has raised a discrimination or wage claim","$400–$800 for a 1–2 hour employment attorney review","2–5 business days",{"best_for":479,"cost":480,"time":481},"Executive separations with equity, deferred compensation, or enhanced severance; mass layoffs with WARN Act obligations; or any separation where active litigation is threatened","$2,000–$8,000+","1–3 weeks",[483,488,493,498],{"code":484,"name":485,"flag_asset_id":486,"note":487},"us","United States","flag-us","There is no federal minimum severance requirement for private employers, but the ADEA and OWBPA impose mandatory disclosures, review periods, and revocation rights for employees aged 40 and older. WARN Act obligations apply to mass layoffs of 50 or more employees at a single site, requiring 60 days' advance notice or pay in lieu. State-level restrictions vary significantly — California limits release scope and bans most non-competes; New York requires specific wage-payment disclosures on final pay.",{"code":489,"name":490,"flag_asset_id":491,"note":492},"ca","Canada","flag-ca","Each province's Employment Standards Act sets minimum termination notice and severance pay — Ontario requires up to 8 weeks' statutory notice plus up to 26 weeks' severance pay for qualifying employees, and courts may award significantly more under common law. Contractual severance that falls below statutory minimums is void to the extent of the shortfall. Quebec contracts must be available in French for provincially regulated employers, and the province's Civil Code governs contract interpretation differently from common law provinces.",{"code":494,"name":495,"flag_asset_id":496,"note":497},"uk","United Kingdom","flag-uk","Statutory redundancy pay is calculated at 0.5 to 1.5 weeks' pay per year of service depending on age, subject to a weekly pay cap updated annually. Settlement agreements (formerly compromise agreements) must be in writing, signed by both parties, and the employee must have received independent legal advice from a named qualified advisor — without this advice, the agreement cannot validly waive statutory employment rights. ACAS Code of Practice applies to the dismissal process and can increase or decrease any tribunal award.",{"code":499,"name":500,"flag_asset_id":501,"note":502},"eu","European Union","flag-eu","Statutory severance entitlements vary significantly by member state — France and Spain mandate severance based on length of service even for consensual separations, while Germany provides strong unfair dismissal protections that make clean releases difficult to obtain without meaningful compensation. Post-employment non-competes generally require financial compensation equivalent to 25–100% of salary to be enforceable. GDPR requires that any confidentiality provisions covering personal data references comply with data subject rights, which cannot be waived by contract.",[239,250,463,467,243,504,505,506,507,508,509,510],"job-offer-letter-long-D12769","employment-agreement-executive-D543","fixed-term-contract-D13225","independent-contractor-agreement-D160","employee-handbook-D712","general-non-compete-agreement-D882","employee-termination-policy-D13489",{"emit_how_to":191,"emit_defined_term":191},{"primary_folder":96,"secondary_folder":513,"document_type":514,"industry":515,"business_stage":516,"tags":517,"confidence":523},"offboarding-and-references","agreement","general","all-stages",[518,519,520,521,522],"termination","severance","separation","legal-agreement","employee-release",0.95,"\u003Ch2>What is a Severance Pay Agreement?\u003C/h2>\n\u003Cp>A \u003Cstrong>Severance Pay Agreement\u003C/strong> is a legally binding contract between an employer and a departing employee that documents the financial compensation and benefits the employee will receive upon separation, and in exchange secures a release of all employment-related legal claims against the employer. It functions as the definitive record of the exit terms — replacing any informal promises or offer letters — and creates enforceable obligations on both sides: the employer must pay the agreed amount on schedule, and the employee is bound by the release, confidentiality, and non-disparagement terms from the moment the revocation period expires. The agreement is typically triggered by a termination without cause, a layoff or reduction in force, or a negotiated mutual departure where both parties want a clean, documented end to the relationship.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Without a signed severance pay agreement, the employer pays exit compensation with no legal protection in return — leaving every employment claim from discrimination to unpaid wages fully intact and actionable. A departing employee who receives a check and signs nothing can file an EEOC charge, a wage-and-hour lawsuit, or a wrongful termination claim weeks after cashing that payment. In jurisdictions like Canada and the UK, an undocumented separation exposes the employer to open-ended common-law notice claims that regularly reach 12 to 24 months of salary for long-tenured employees. The agreement also eliminates post-separation ambiguity about which prior restrictions survive — confidentiality, IP assignment, non-solicitation — reducing the likelihood that a former employee joins a competitor claiming the restrictions were released as part of the deal. A properly executed severance pay agreement, delivered with the required review period and signed before the last day of employment, closes all of these exposures for a fraction of the cost of a single employment dispute.\u003C/p>\n",1781185950303]