[{"data":1,"prerenderedAt":501},["ShallowReactive",2],{"document-severance-plan-D13185":3},{"document":4,"label":23,"preview":11,"thumb":24,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":25,"breadcrumb":29,"related":35,"customDescModule":177,"customdescription":6,"mdFm":178,"mdProseHtml":500},{"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 PLAN This Severance Plan is maintained by [NAME OF THE COMPANY] and certain of its subsidiaries and affiliates (the \"Company\"). The purpose of this Severance Plan is to provide temporary benefits to eligible executives whose employment is involuntarily terminated, to assist such executives with their transition to new employment. The Severance Plan 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 executive has any vested right to any benefits under this Plan prior to the date the executive is terminated for reasons rendering the executive eligible for benefits under the express terms of the Plan. This Plan does not create any contract of employment or right to employment for any period of time. Employment with the Company is at-will and may be terminated by either the Company or the executive at any time for any reason. EFFECTIVE DATE The effective date of this Plan is [DATE] (the \"Effective Date\"). On the Effective Date, this Plan supersedes and replaces all severance policies previously maintained by the Company for the benefit of its executives. APPLICATION This Plan applies solely to individuals who are eligible executives, with the exclusion of Executive Committee executives of the Company on their Termination Date. ELIGIBILITY An Employee is eligible for a Severance Pay Benefit under this Plan if the Employee's employment is permanently terminated by an Employer as the result of: the occurrence of one of the following events (as determined by the Employer): an Employer reduction in force, or the elimination of the Employee's present job position. the Employee's prior job position not being available when the Employee attempts to return to work within six (6) months, or such longer period as may be required by law, from his or her last day of work from an approved leave of absence and no Comparable Job is offered to the Employee. Notwithstanding anything to the contrary in 3.1(a), an Employee will not be eligible for a Severance Pay Benefit under this Plan as the result of: termination of the Employee's employment if: he or she accepts any position with an Employer, or he or she receives a Comparable Job offer, or the sale or other disposition of all of the stock or all or a portion of the business of an Employer, or merger of an Employer into or with another corporation, whether by sale of stock or assets or otherwise. The mere fact of a change in control, or sale or other disposition of all or a portion of any Employer will not be deemed a Termination of Employment for purposes of qualifying for a Severance Pay Benefit under this Plan; or, the Employee's retirement, disability, death, resignation, or discharge with or without cause for any reason other than set forth in this Plan in section 2.1. Notwithstanding anything to the contrary in this Plan, payment of a Severance Pay Benefit is conditioned upon: the Employee's execution of a general release of all claims against his or her Employer and the Company in a form acceptable to the Company; and the Employee's continued and acceptable performance of services for the Employer through the date for Termination of Employment chosen by the Employer. In the event that the Employee does not execute the general release or continue to perform services through Termination of Employment, any Severance Pay Benefit which would otherwise have been payable to the Employee under this Plan shall be forfeited. SEVERANCE PAY SCHEDULE AND OTHER BENEFITS Except as otherwise provided in a Schedule to this Plan, benefits under this Plan shall be paid as follows: [DESCRIBE HOW THE SEVERANCE PAY BENEFIT PAYMENT WILL BE CALCULATED FOR THE ELIGIBLE EMPLOYEES] 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 persons and for the periods of time determined by the Company in its absolute and sole discretion. Notwithstanding any other provision in this Plan, expatriates eligible for Severance Benefits under this Plan will receive only the greater of: the Severance Benefits the expatriate would be eligible to receive under this Plan; or the severance, termination, or similar pay the expatriate would be entitled to receive under the local law of the country or jurisdiction where the expatriate performs his or her expatriate duties for the Company. Any additional benefit provided after an Employee's Termination of Employment will be governed by and made available according to an Employer's policies and procedures or, if applicable, the plan document for a particular benefit, and will not be considered to be part of or provided under this Plan. REQUIREMENT OF RELEASE Payment of Severance Benefits is conditioned upon the executive signing, in a timely manner, an agreement and release (in a form satisfactory to the Company) which will include restrictive covenants and a comprehensive release of all claims, including but not limited to, all employment-related claims. Payment of Severance Benefits will commence no sooner than eight (8) days following the Employee's execution of the agreement and release. In no event will payment commence later than 31 days after separation from service if a waiver is requested from an individual or later than 55 days after separation from service if a waiver is requested in connection with an exit incentive or other employment termination program offered to a group or class of employees. If an executive's employment is terminated for a reason covered by this Plan but the executive dies prior to executing an agreement and release, his or her estate or representative may not execute an agreement and release, and no Severance Benefits will be paid under this Plan. DEATH If an Employee terminates employment and dies before receiving a Severance Pay Benefit to which he is entitled under the Plan, such Severance Pay Benefit will be paid to the following beneficiary(ies) in the following order of priority: the Employee's surviving spouse, the Employee's surviving children in equal shares, the Employee's surviving parents, in equal shares, or the Employee's estate. If the beneficiary survives the Employee, but dies prior to distribution of the Employee's entire Severance Pay Benefit, such Severance Pay Benefit will be paid to the following beneficiary(ies) in the following order of priority: the beneficiary's surviving spouse, the beneficiary's surviving children in equal shares, the beneficiary's surviving parents, in equal shares, or the beneficiary's estate. WITHHOLDING AND OFFSETS An Employer will have the right to take such action as it deems necessary or appropriate with respect to all or a portion of any Severance Pay Benefit payment to satisfy any requirement under federal, state or other tax law, or under any law relating to attachment, wage assignment, garnishment or similar procedures. Except as prohibited by state or other law, the Employer may withhold or make deductions from any Severance Pay Benefit payment in order to satisfy any amounts owed to the Employer by the Employee, including without limitation the portion of any medical or dental insurance premium which the Employee is responsible to pay. CORRECTION OF MISTAKES In the event the Committee discovers a mistake that affects the amount of or an Employee's rights to Severance Pay Benefits and/or Extension of Coverage Benefits, it will correct the mistake as soon as practicable in the manner it deems appropriate. APPOINTMENT OF COMMITTEE The Plan shall be administered by a Committee of at least two (2) persons appointed by the Human Resource Office (\"HRO\")",null,"Severance Plan","7",513,"doc","https://templates.business-in-a-box.com/imgs/1000px/severance-plan-D13185.png","https://templates.business-in-a-box.com/imgs/250px/13185.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13185.xml",{"title":15,"description":6},"severance plan",[17,20],{"label":18,"url":19},"Human Resources","/templates/human-resources/",{"label":21,"url":22},"Employee Termination","/templates/employee-termination/","Severance Plan Template","https://templates.business-in-a-box.com/imgs/400px/13185.png",[26,17,20],{"label":27,"url":28},"Templates","/templates/",[30,31,32],{"label":27,"url":28},{"label":18,"url":19},{"label":33,"url":34},"Offboarding & References","/templates/offboarding-and-references/",[36,40,44,48,52,56,60,64,68,72,77,81,85,100,115,131,147,162],{"label":37,"url":38,"thumb":39,"extension":10},"Severance Package","/template/severance-package-D13238","https://templates.business-in-a-box.com/imgs/250px/13238.png",{"label":41,"url":42,"thumb":43,"extension":10},"Severance Agreement","/template/severance-agreement-D525","https://templates.business-in-a-box.com/imgs/250px/525.png",{"label":45,"url":46,"thumb":47,"extension":10},"Severance Letter","/template/severance-letter-D13283","https://templates.business-in-a-box.com/imgs/250px/13283.png",{"label":49,"url":50,"thumb":51,"extension":10},"California Severance Agreement","/template/california-severance-agreement-D13912","https://templates.business-in-a-box.com/imgs/250px/13912.png",{"label":53,"url":54,"thumb":55,"extension":10},"Severance Pay Agreement","/template/severance-pay-agreement-D12863","https://templates.business-in-a-box.com/imgs/250px/12863.png",{"label":57,"url":58,"thumb":59,"extension":10},"Severance Agreement (over 40)","/template/severance-agreement-over-40-D12862","https://templates.business-in-a-box.com/imgs/250px/12862.png",{"label":61,"url":62,"thumb":63,"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":65,"url":66,"thumb":67,"extension":10},"Security Response Plan Policy","/template/security-response-plan-policy-D12686","https://templates.business-in-a-box.com/imgs/250px/12686.png",{"label":69,"url":70,"thumb":71,"extension":10},"Employee Termination Policy","/template/employee-termination-policy-D13489","https://templates.business-in-a-box.com/imgs/250px/13489.png",{"label":73,"url":74,"thumb":75,"extension":76},"Project Plan","/template/project-plan-D12775","https://templates.business-in-a-box.com/imgs/250px/12775.png","xls",{"label":78,"url":79,"thumb":80,"extension":76},"It Project Plan","/template/it-project-plan-D12794","https://templates.business-in-a-box.com/imgs/250px/12794.png",{"label":82,"url":83,"thumb":84,"extension":10},"Advertising Plan","/template/advertising-plan-D12786","https://templates.business-in-a-box.com/imgs/250px/12786.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":119,"extension":10,"preview":120,"thumb":121,"svgFrame":122,"seoMetadata":123,"parents":124,"keywords":129,"url":130},"Employee Handbook Understanding employment at [YOUR COMPANY NAME] Revised on [DATE] Prepared By: [YOUR NAME] [YOUR JOB TITLE] Phone 555.555.5555 Email info@yourbusiness.com www.yourbusiness.com Table of Content Table of Content 2 Welcome to [YOUR COMPANY NAME]! 5 1. Organization Description 6 1.1 Introductory Statement 6 1.2 Customer Relations 6 1.3 Products and Services Provided 7 1.4 Facilities and Location(s) 7 1.5 The History of [YOUR COMPANY NAME] 7 1.6 Management Philosophy 7 1.7 Goals 8 2. The Employment 9 2.1 Nature of Employment 9 2.2 Employee Relations 9 2.3 Equal Employment Opportunity 10 2.4 Diversity 10 2.5 Business Ethics and Conduct 12 2.6 Personal Relationships in the Workplace 13 2.7 Conflicts of Interest 13 2.8 Outside Employment 14 2.9 Non-Disclosure 15 2.10 Disability Accommodation 16 2.11 Job Posting and Employee Referrals 17 2.12 Whistleblower Policy 18 2.13 Accident and First Aid 20 3. Employment Status and Records 21 3.1 Employment Categories 21 3.2 Access to Personnel Files 22 3.3 Personnel Data Changes 23 3.4 Probation Period 23 3.5 Employment Applications 24 3.6 Performance Evaluation 24 3.7 Job Descriptions 25 3.8 Salary Administration 25 3.9 Professional Development 26 4. Employee Benefit Programs 27 4.1 Employee Benefits 27 4.2 Vacation Benefits 27 4.3 Military Service Leave 29 4.4 Religious Observance 29 4.5 Holidays 29 4.6 Workers Insurance 30 4.7 Sick Leave Benefits 31 4.8 Bereavement Leave 32 4.9 Relocation Benefits 33 4.10 Educational Assistance 33 4.11 Health Insurance 34 4.12 Life Insurance 35 4.13 Long Term Disability 35 4.14 Marriage, Maternity and Parental Leave 36 5. Timekeeping / Payroll 40 5.1 Timekeeping 40 5.2 Paydays 40 5.3 Employment Termination 41 5.4 Administrative Pay Corrections 42 6. Work Conditions and Hours 43 6.1 Work Schedules 43 6.2 Absences 43 6.3 Jury Duty 45 6.4 Use of Phone and Mail Systems 45 6.5 Smoking 46 6.6 Meal Periods 46 6.7 Overtime 46 6.8 Use of Equipment 47 6.9 Telecommuting 47 6.10 Emergency Closing 48 6.11 Business Travel Expenses 49 6.12 Visitors in the Workplace 51 6.13 Computer and Email Usage 51 6.14 Internet Usage 52 6.15 Workplace Monitoring 54 6.16 Workplace Violence Prevention 55 7. Employee Conduct & Disciplinary Action 57 7.1 Employee Conduct and Work Rules 57 7.2 Sexual and Other Unlawful Harassment 58 7.3 Attendance and Punctuality 60 7.4 Personal Appearance 60 7.5 Return of Property 61 7.6 Resignation and Retirement 61 7.7 Security Inspections 62 7.8 Progressive Discipline 62 7.9 Problem Resolution 64 7.10 Workplace Etiquette 65 7.11 Suggestion Program 67 Acknowledgement of Receipt 68 Welcome to [YOUR COMPANY NAME]! On behalf of your colleagues, we welcome you to [YOUR COMPANY NAME] and wish you every success here. At [YOUR COMPANY NAME], we believe that each employee contributes directly to the growth and success of the company, and we hope you will take pride in being a member of our team. This handbook was developed to describe some of the expectations of our employees and to outline the policies, programs, and benefits available to eligible employees. Employees should become familiar with the contents of the employee handbook as soon as possible, for it will answer many questions about employment with [YOUR COMPANY NAME]. We believe that professional relationships are easier when all employees are aware of the culture and values of the organization. This guide will help you to better understand our vision for the future of our business and the challenges that are ahead. We hope that your experience here will be challenging, enjoyable, and rewarding. Again, welcome! [PRESIDENT NAME] President & CEO 1. Organization Description 1.1 Introductory Statement This handbook is designed to acquaint you with [YOUR COMPANY NAME] and provide you with information about working conditions, employee benefits, and some of the policies affecting your employment. You should read, understand, and comply with all provisions of the handbook. It describes many of your responsibilities as an employee and outlines the programs developed by [YOUR COMPANY NAME] to benefit employees. One of our objectives is to provide a work environment that is conducive to both personal and professional growth. No employee handbook can anticipate every circumstance or question about policy. As [YOUR COMPANY NAME] continues to grow, the need may arise and [YOUR COMPANY NAME] reserves the right to revise, supplement, or rescind any policies or portion of the handbook from time to time as it deems appropriate, in its sole and absolute discretion. Employees will be notified of such changes to the handbook as they occur. 1.2 Customer Relations Customers are among our organization's most valuable assets. Every employee represents [YOUR COMPANY NAME] to our customers and the public. The way we do our jobs presents an image of our entire organization. Customers judge all of us by how they are treated with each employee contact. Therefore, one of our first business priorities is to assist any customer or potential customer. Nothing is more important than being courteous, friendly, helpful, and prompt in the attention you give to customers. [YOUR COMPANY NAME] will provide customer relations and services training to all employees with extensive customer contact. Customers who wish to lodge specific comments or complaints should be directed to the [TITLE AND NAME OF THE PERSON RESPONSIBLE] for appropriate action. Our personal contact with the public, our manners on the telephone, and the communications we send to customers are a reflection not only of ourselves, but also of the professionalism of [YOUR COMPANY NAME]. Positive customer relations not only enhance the public's perception or image of [YOUR COMPANY NAME], but also pay off in greater customer loyalty and increased sales and profit. 1.3 Products and Services Provided You will find more information about our products and services by reading the [YOUR COMPANY NAME] Corporate Brochures. 1.4 Facilities and Location(s) Head Office: [ADDRESS] [CITY], [STATE] [ZIP/POSTAL CODE] [COUNTRY] 1.5 The History of [YOUR COMPANY NAME] [DESCRIBE THE HISTORY OF YOUR COMPANY HERE] 1.6 Management Philosophy [YOUR COMPANY NAME] management philosophy is based on responsibility and mutual respect. Our wishes are to maintain a work environment that fosters on personal and professional growth for all employees. Maintaining such an environment is the responsibility of every staff person. Because of their role, managers and supervisors have the additional responsibility to lead in a manner which fosters an environment of respect for each person. People who come to [YOUR COMPANY NAME] want to work here because we have created an environment that encourages creativity and achievement. [YOUR COMPANY NAME] aims to become a leader in [DESCRIBE YOUR COMPANY'S FIELD OF EXPERTISE]. The mainstay of our strategy will be to offer a level of client focus that is superior to that offered by our competitors. To help achieve this objective, [YOUR COMPANY NAME] seeks to attract highly motivated individuals that want to work as a team and share in the commitment, responsibility, risk taking, and discipline required to achieve our vision. Part of attracting these special individuals will be to build a culture that promotes both uniqueness and a bias for action. While we will be realistic in setting goals and expectations, [YOUR COMPANY NAME] will also be aggressive in reaching its objectives. This success will in turn enable [YOUR COMPANY NAME] to give its employees above average compensation and innovative benefits or rewards, key elements in helping us maintain our leadership position in the worldwide marketplace. 1.7 Goals [DESCRIBE YOUR COMPANY'S GOALS HERE] 2. 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Review the performance improvement plan (PIP). Set up meeting with the employee. Explain areas for improvement and plan of action. Supervisor and employee should sign the PIP form. Establish regular follow-up meetings. PIP Conclusion. Definition/Explanation: Performance improvement plan: Process used when an employee has not carried out work to satisfactory standard. 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Number is [Insert], and its Business License Number is [insert]. Independent Contractor has complied with all Federal, State, and local laws regarding business permits, sales permits, licenses, reporting requirements, tax withholding requirements, and other legal requirements of any kind that may be required to carry out said business and the Scope of Work which is to be performed as an Independent Contractor pursuant to this Agreement. Independent Contractor is or remains open to conducting similar tasks or activities for clients other than the Company and holds themselves out to the public to be a separate business entity. Company desires to engage and contract for the services of the Independent Contractor to perform certain tasks as set forth below. Independent Contractor desires to enter into this Agreement and perform as an independent contractor for the company and is willing to do so on the terms and conditions set forth below. NOW, THEREFORE, in consideration of the above recitals and the mutual promises and conditions contained in this Agreement, the Parties agree as follows: TERMS This Agreement shall be effective commencing [Date], and shall continue until terminated at the completion of the Scope of Work which shall occur no later than [Date] or by either party as otherwise provided herein. STATUS OF INDEPENDENT CONTRACTOR This Agreement does not constitute a hiring by either party. It is the parties intentions that Independent Contractor shall have an independent contractor status and not be an employee for any purposes, including, but not limited to, [laws]. Independent Contractor shall retain sole and absolute discretion in the manner and means of carrying out their activities and responsibilities under this Agreement. This Agreement shall not be considered or construed to be a partnership or joint venture, and the Company shall not be liable for any obligations incurred by Independent Contractor unless specifically authorized in writing. Independent Contractor shall not act as an agent of the Company, ostensibly or otherwise, nor bind the Company in any manner, unless specifically authorized to do so in writing. TASKS, DUTIES, AND SCOPE OF WORK Independent Contractor agrees to devote as much time, attention, and energy as necessary to complete or achieve the following: [Describe]. The above to be referred to in this Agreement as the \"Scope of Work\". It is expected that the Scope of Work will completed by [Date]. Independent Contractor shall additionally perform any and all tasks and duties associated with the Scope of Work set forth above, including but not limited to, work being performed already or related change orders. Independent Contractor shall not be entitled to engage in any activities which are not expressly set forth by this Agreement. The books and records related to the Scope of Work set forth in this Agreement shall be maintained by the Independent Contractor at the Independent Contractor's principal place of business and open to inspection by Company during regular working hours. Documents to which Company will be entitled to inspect include, but are not limited to, any and all contract documents, change orders/purchase orders and work authorized by Independent Contractor or Company on existing or potential projects related to this Agreement. Independent Contractor shall be responsible to the management and directors of Company, but Independent Contractor will not be required to follow or establish a regular or daily work schedule. Supply all necessary equipment, materials and supplies. Independent Contractor will not rely on the equipment or offices of Company for completion of tasks and duties set forth pursuant to this Agreement. Any advice given Independent Contractors regarding the scope of work shall be considered a suggestion only, not an instruction. Company retains the right to inspect, stop, or alter the work of Independent Contractor to assure its conformity with this Agreement. ASSURANCE OF SERVICES Independent Contractor will assure that the following individuals (the \"Key Employees\") will be available to perform, and will perform, the Services hereunder until they are completed (identify by title and name as applicable): [Name of Key Employee, Title] [Name of Key Employee, Title] The Key Employees may be changed only with the prior written approval of the Company, which approval shall not be unreasonably withheld. COMPENSATION Independent Contractor shall be entitled to compensation for performing those tasks and duties related to the Scope of Work as follows: [Describe] Such compensation shall become due and payable to Independent Contractor in the following time, place, and manner: [Describe] NOTICE CONCERNING WITHHOLDING OF TAXES Independent Contractor recognizes and understands that it will receive a [specify tax] statement and related tax statements, and will be required to file corporate and/or individual tax returns and to pay taxes in accordance with all provisions of applicable Federal and State law. Independent Contractor hereby promises and agrees to indemnify the Company for any damages or expenses, including attorney's fees, and legal expenses, incurred by the Company as a result of independent contractor's failure to make such required payments. AGREEMENT TO WAIVE RIGHTS TO BENEFITS Independent Contractor hereby waives and foregoes the right to receive any benefits given by Company to its regular employees, including, but not limited to, health benefits, vacation and sick leave benefits, profit sharing plans, etc. This waiver is applicable to all non-salary benefits which might otherwise be found to accrue to the Independent Contractor by virtue of their services to Company, and is effective for the entire duration of Independent Contractor's agreement with Company. This waiver is effective independently of Independent Contractor's employment status as adjudged for taxation purposes or for any other purpose. Neither this Agreement, nor any duties or obligations under this Agreement may be assigned by either party without the consent of the other. TERMINATION This Agreement may be terminated prior to the completion or achievement of the Scope of Work by either party giving [number] days written notice. Such termination shall not prejudice any other remedy to which the terminating party may be entitled, either by law, in equity, or under this Agreement. NON-DISCLOSURE OF TRADE SECRETS, CUSTOMER LISTS AND OTHER PROPRIETARY INFORMATION Independent Contractor agrees not to disclose or communicate, in any manner, either during or after Independent Contractor's agreement with Company, information about Company, its operations, clientele, or any other information, that relate to the business of Company including, but not limited to, the names of its customers, its marketing strategies, operations, or any other information of any kind which would be deemed confidential, a trade secret, a customer list, or other form of proprietary information of Company. Independent Contractor acknowledges that the above information is material and confidential and that it affects the profitability of Company. ","Independent Contractor Agreement","6",62,"https://templates.business-in-a-box.com/imgs/1000px/independent-contractor-agreement-D160.png","https://templates.business-in-a-box.com/imgs/250px/160.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#160.xml",{"title":6,"description":6},[157],{"label":158,"url":159},"Consultant & Contractors","consulting-contractor-business","independent contractor agreement","/template/independent-contractor-agreement-D160",{"description":163,"descriptionCustom":6,"label":164,"pages":8,"size":9,"extension":10,"preview":165,"thumb":166,"svgFrame":167,"seoMetadata":168,"parents":170,"keywords":169,"url":176},"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":169,"description":6},"employment agreement_at will employee",[171,172,175],{"label":18,"url":111},{"label":173,"url":174},"Hire an Employee","hire-employee",{"label":96,"url":97},"/template/employment-agreement_at-will-employee-D541",false,{"seo":179,"reviewer":190,"legal_disclaimer":177,"quick_facts":194,"at_a_glance":196,"personas":200,"variants":225,"glossary":252,"sections":283,"how_to_fill":329,"common_mistakes":370,"faqs":395,"industries":423,"comparisons":448,"diy_vs_pro":462,"educational_modules":475,"related_template_ids_curated":478,"schema":486,"classification":488},{"meta_title":180,"meta_description":181,"primary_keyword":182,"secondary_keywords":183},"Severance Plan Template | BIB","Free severance plan template covering eligibility, benefit formulas, release conditions, and payment schedules.","severance plan template",[184,185,186,187,188,189],"employee severance plan","severance policy template","severance plan word template","severance benefit plan","separation pay policy","severance plan free download",{"name":191,"credential":192,"reviewed_date":193},"Bruno Goulet","CEO, Business in a Box","2026-05-02",{"difficulty":195,"legal_review_recommended":177,"signature_required":177},"medium",{"what_it_is":197,"when_you_need_it":198,"whats_inside":199},"A Severance Plan is a formal company policy document that establishes the rules for paying separation benefits to employees whose employment is terminated involuntarily. This free Word download lets you define eligibility criteria, benefit formulas, release conditions, and payment schedules in a single structured document you can edit online and export as PDF to distribute to HR, legal, and leadership teams.\n","Use it when your organization conducts a reduction in force, closes a department, eliminates roles due to restructuring, or wants a consistent written policy to govern all future involuntary separations. A documented plan also helps defend against discrimination claims by showing every affected employee was treated under the same written rules.\n","Purpose and scope, eligibility criteria, severance benefit formula, release agreement requirements, payment schedule and method, benefits continuation provisions, treatment of equity and bonuses, and plan administration procedures.\n",[201,205,209,213,217,221],{"title":202,"use_case":203,"icon_asset_id":204},"HR directors","Standardizing separation benefits across departments and locations","persona-hr-manager",{"title":206,"use_case":207,"icon_asset_id":208},"CEOs and founders","Formalizing a written policy before the first reduction in force","persona-ceo",{"title":210,"use_case":211,"icon_asset_id":212},"CFOs and finance leaders","Budgeting separation costs and forecasting liability for restructuring events","persona-cfo",{"title":214,"use_case":215,"icon_asset_id":216},"Employment lawyers","Providing clients with a compliant baseline plan to adapt for their workforce","persona-legal-counsel",{"title":218,"use_case":219,"icon_asset_id":220},"Operations directors","Documenting procedures for handling involuntary separations consistently","persona-operations-director",{"title":222,"use_case":223,"icon_asset_id":224},"Private equity operating partners","Installing a severance policy at a portfolio company before a restructuring","persona-investor",[226,230,234,238,242,245,248],{"situation":227,"recommended_template":228,"slug":229},"Terminating a single executive with negotiated severance","Executive Severance Agreement","severance-agreement-D525",{"situation":231,"recommended_template":232,"slug":233},"Laying off a group of employees in a reduction in force","Severance Plan (RIF)","severance-plan-D13185",{"situation":235,"recommended_template":236,"slug":237},"Separating an employee and requiring a legal release","Separation Agreement and Release","separation-agreement-D13184",{"situation":239,"recommended_template":240,"slug":241},"Communicating termination to the affected employee","Employee Termination Letter","employee-dismissal-letter-D508",{"situation":243,"recommended_template":149,"slug":244},"Offering a departing employee continued consulting","independent-contractor-agreement-D160",{"situation":246,"recommended_template":117,"slug":247},"Outlining all HR policies in a single reference document","employee-handbook-D712",{"situation":249,"recommended_template":250,"slug":251},"Documenting the performance issues that led to termination","Employee Performance Improvement Plan","how-to-create-a-performance-improvement-plan-D12564",[253,256,259,262,265,268,271,274,277,280],{"term":254,"definition":255},"Severance Pay","Compensation paid to an employee upon involuntary termination, typically calculated as a fixed number of weeks of base salary per year of service.",{"term":257,"definition":258},"Reduction in Force (RIF)","A planned elimination of positions, usually driven by restructuring, budget cuts, or a business closure — distinct from termination for performance or cause.",{"term":260,"definition":261},"Release Agreement","A signed legal document in which the departing employee waives the right to bring certain claims against the employer in exchange for severance benefits.",{"term":263,"definition":264},"WARN Act","The US Worker Adjustment and Retraining Notification Act, which requires employers with 100 or more employees to give 60 days' advance notice before a mass layoff or plant closing.",{"term":266,"definition":267},"COBRA","A US federal law that allows departing employees to continue group health coverage for a defined period — typically 18 months — at their own expense after leaving employment.",{"term":269,"definition":270},"Pay in Lieu of Notice","A lump-sum or salary-continuation payment made to an employee instead of requiring them to work through a notice period.",{"term":272,"definition":273},"Clawback Provision","A clause requiring the employee to return severance payments if they violate a post-termination obligation such as a non-compete or confidentiality agreement.",{"term":275,"definition":276},"ERISA","The Employee Retirement Income Security Act, a US federal law that governs employer-sponsored benefit plans — including severance plans that meet the definition of a welfare benefit plan.",{"term":278,"definition":279},"Salary Continuation","A severance structure in which the employer continues paying the employee's regular salary on normal payroll dates for a defined post-termination period, rather than issuing a lump sum.",{"term":281,"definition":282},"Good Reason Clause","A provision, common in executive plans, that entitles an employee to severance if they resign following a significant adverse change — such as a pay cut, demotion, or forced relocation.",[284,289,294,299,304,309,314,319,324],{"name":285,"plain_english":286,"sample_language":287,"common_mistake":288},"Purpose and scope","States why the plan exists, which entity sponsors it, and which employees and locations it covers.","[COMPANY NAME] ('Company') establishes this Severance Plan ('Plan') to provide separation benefits to eligible employees whose employment is involuntarily terminated due to restructuring, position elimination, or reduction in force, effective [EFFECTIVE DATE].","Scoping the plan to 'all employees' without carving out terminations for cause — this creates an obligation to pay severance in situations the company never intended to cover.",{"name":290,"plain_english":291,"sample_language":292,"common_mistake":293},"Eligibility criteria","Defines exactly which employees qualify — by classification, tenure, and termination type — and which are explicitly excluded.","An employee is eligible if they are (a) a regular full-time or part-time employee, (b) have completed at least [X] months of continuous service, and (c) are terminated involuntarily without Cause. The following are not eligible: employees terminated for Cause, contractors, interns, employees who resign, and employees covered by a separate written severance agreement.","Omitting a minimum tenure threshold, which can result in severance obligations to employees in their first 30 days who are let go for poor fit.",{"name":295,"plain_english":296,"sample_language":297,"common_mistake":298},"Severance benefit formula","States the specific calculation for how much pay each eligible employee receives, typically based on years of service and job level.","Eligible employees shall receive [X] week(s) of Base Salary for each completed year of continuous service, with a minimum of [MINIMUM WEEKS] weeks and a maximum of [MAXIMUM WEEKS] weeks. 'Base Salary' means the employee's annual base salary rate in effect on the date of separation, excluding bonuses, commissions, and benefits.","Defining 'Base Salary' to include variable compensation without intending to — one ambiguous word can turn a $50,000 severance obligation into a $90,000 one.",{"name":300,"plain_english":301,"sample_language":302,"common_mistake":303},"Release agreement requirement","Conditions payment of severance on the employee signing and not revoking a release of claims within a defined deadline.","Payment of severance benefits is conditioned on the employee executing the Company's standard Separation Agreement and General Release within [21 / 45] days of the separation date and not revoking it within [7] days thereafter. Failure to sign or a timely revocation forfeits all severance benefits.","Not specifying the revocation period. The ADEA requires a 7-day revocation window for employees 40 and older — omitting it invalidates the age-discrimination waiver.",{"name":305,"plain_english":306,"sample_language":307,"common_mistake":308},"Payment schedule and method","Specifies whether severance is paid as a lump sum or salary continuation, the timing of the first payment, and the payroll vehicle used.","Severance shall be paid as [lump sum / salary continuation] beginning on the first regular payroll date following expiration of the revocation period. Payments are subject to standard withholding and deductions. No interest accrues on amounts held pending release execution.","Promising payment 'as soon as possible' without tying it to the release revocation period — the company may end up paying before the waiver is irrevocable.",{"name":310,"plain_english":311,"sample_language":312,"common_mistake":313},"Benefits continuation","Addresses what happens to health, dental, vision, life insurance, and retirement plan participation after the separation date.","Group health coverage ends on the last day of the month in which separation occurs. The Company will [pay / reimburse] the COBRA premium for up to [X] months following separation. Retirement plan contributions cease on the separation date; vested balances are governed by the plan document.","Promising to 'continue benefits' without specifying the duration or whether the company or employee pays the COBRA premium — both create open-ended cost exposure.",{"name":315,"plain_english":316,"sample_language":317,"common_mistake":318},"Equity and bonus treatment","States what happens to unvested equity, in-progress bonus cycles, and commissions outstanding at the date of separation.","Unvested equity awards are forfeited on the separation date unless otherwise specified in the applicable equity award agreement. Any annual bonus earned for a completed fiscal year but not yet paid will be paid at the same time and on the same terms as bonuses paid to active employees. Pro-rated bonuses for a partial year are not payable unless separately agreed in writing.","Leaving equity treatment silent in the severance plan and assuming the equity plan document covers it — employees will argue both documents create independent entitlements.",{"name":320,"plain_english":321,"sample_language":322,"common_mistake":323},"Post-separation obligations","Reminds the employee that existing confidentiality, non-compete, and non-solicit obligations survive termination and are a condition of retaining severance.","Receipt of severance benefits does not release Employee from post-separation obligations under any previously executed Confidentiality, Non-Compete, or Non-Solicitation agreement. The Company may suspend or seek recovery of severance payments upon a material breach of any such obligation.","Treating post-separation obligations as a separate matter and not cross-referencing them in the severance plan — employees who receive full severance before a breach is discovered have less financial incentive to comply.",{"name":325,"plain_english":326,"sample_language":327,"common_mistake":328},"Plan administration and amendment","Identifies who administers the plan, how disputes are resolved, and the company's right to amend or terminate the plan prospectively.","The Plan is administered by the [Chief People Officer / HR Director] ('Plan Administrator'). The Company reserves the right to amend, modify, or terminate this Plan at any time with [30] days' advance notice, except that no amendment shall reduce benefits already accrued to employees notified of their separation prior to the amendment date.","No amendment provision at all — or a provision that allows retroactive amendment — which either locks the company into outdated terms or exposes it to breach-of-contract claims.",[330,335,340,345,350,355,360,365],{"step":331,"title":332,"description":333,"tip":334},1,"Define the plan's scope and effective date","Enter the company's legal name, the effective date of the plan, and the specific employee populations covered — full-time, part-time, or both. Explicitly list any groups excluded, such as contractors, interns, or employees with individual severance agreements.","Add a version number and date to the document header so HR can track which version was in effect during any given separation event.",{"step":336,"title":337,"description":338,"tip":339},2,"Set eligibility criteria and tenure minimums","Choose a minimum continuous service threshold — 90 days or 6 months is typical — and list all disqualifying termination types: for cause, resignation, retirement, and death. Cross-check against your employment agreements to avoid conflicting terms.","If your company has multiple employee classifications, create a simple eligibility table by tier rather than lengthy prose — it reduces ambiguity and speeds up HR administration.",{"step":341,"title":342,"description":343,"tip":344},3,"Write the severance benefit formula","Choose a formula — weeks of base salary per year of service is most common — and set a floor and ceiling. Typical ranges: 1–2 weeks per year of service, minimum 2 weeks, maximum 26 weeks for non-executives.","Define 'Base Salary' explicitly and exclude variable pay, benefits, and equity value. Ambiguity in this definition is the single most common source of severance disputes.",{"step":346,"title":347,"description":348,"tip":349},4,"Specify the release requirement and timing","State that severance is conditioned on a signed release, the deadline for signing (21 days for individual separations, 45 days for group RIFs under the ADEA), and the 7-day revocation window for employees 40 and older.","Reference your standard separation agreement template by name here so HR always uses the correct release form and doesn't draft one from scratch under time pressure.",{"step":351,"title":352,"description":353,"tip":354},5,"Choose lump sum or salary continuation","Lump sums simplify administration and are preferred by most employees. Salary continuation preserves the company's ability to suspend payments if post-separation obligations are breached. Select one method and apply it consistently.","If your plan covers executives separately, note that executive agreements often use salary continuation to maintain leverage over non-compete compliance.",{"step":356,"title":357,"description":358,"tip":359},6,"Address benefits continuation and COBRA","Specify the last day of coverage for each benefit type, whether the company subsidizes COBRA premiums and for how long, and how retirement plan balances are handled. Confirm your COBRA administrator can operationalize the subsidy before including it.","A 3-month COBRA subsidy is a low-cost benefit that significantly improves employee perception of the separation process and reduces the likelihood of litigation.",{"step":361,"title":362,"description":363,"tip":364},7,"Document equity and bonus treatment","State explicitly what happens to unvested equity, any earned-but-unpaid bonus for a completed fiscal year, and pro-rated bonuses. Confirm these provisions are consistent with the language in your equity plan and offer letters.","If you have multiple equity award types — RSUs, options, performance shares — address each one separately to avoid interpretation disputes.",{"step":366,"title":367,"description":368,"tip":369},8,"Reserve amendment rights with a notice period","Include a provision that the company may amend or terminate the plan with at least 30 days' written notice, but that no amendment reduces benefits for employees already notified of their separation. Name the plan administrator.","Store the executed plan in a central HR system with an annual review reminder — benefit formulas that were generous when written can become unintended liabilities as the workforce grows.",[371,375,379,383,387,391],{"mistake":372,"why_it_matters":373,"fix":374},"No minimum tenure threshold","Without one, new hires terminated in their first month are technically eligible for severance — creating unexpected costs and undermining the plan's purpose of rewarding service.","Set a minimum of 60 to 90 days of continuous service as the eligibility floor and state it explicitly in the eligibility section.",{"mistake":376,"why_it_matters":377,"fix":378},"Ambiguous definition of 'Base Salary'","If 'Base Salary' is not defined, employees and their attorneys will argue it includes bonuses, commissions, and car allowances — potentially doubling the intended benefit.","Define 'Base Salary' as the annual base rate in effect on the separation date, and list specific exclusions: bonuses, commissions, overtime, equity, and benefits.",{"mistake":380,"why_it_matters":381,"fix":382},"Omitting the ADEA revocation period","The Age Discrimination in Employment Act requires a 7-day revocation window for employees 40 or older who sign an age-discrimination waiver. Omitting it invalidates the waiver for that population.","Add explicit 21-day consideration and 7-day revocation language to the release requirement section, and note that group RIFs require 45 days under OWBPA.",{"mistake":384,"why_it_matters":385,"fix":386},"Promising salary continuation without a breach-suspension clause","Ongoing salary payments are easy to suspend if a non-compete is violated — but only if the plan document explicitly reserves that right. Without it, courts may treat suspension as a breach by the employer.","Add a clawback or suspension clause stating that payments may be halted, and prior payments sought back, upon a material breach of any post-separation obligation.",{"mistake":388,"why_it_matters":389,"fix":390},"Leaving equity treatment silent","Employees assume silence means favorable treatment. When unvested equity is forfeited, they claim the severance plan created an independent entitlement — leading to costly disputes.","Address every equity award type explicitly: unvested awards are forfeited unless the equity plan document states otherwise, and reference the equity plan by name.",{"mistake":392,"why_it_matters":393,"fix":394},"No amendment provision","A plan with no amendment clause can be read as a permanent irrevocable commitment — locking the company into benefit formulas that may become unsustainable as headcount grows.","Include a clause reserving the right to amend with 30 days' notice, and clarify that amendments do not reduce benefits for employees already in their separation process.",[396,399,402,405,408,411,414,417,420],{"question":397,"answer":398},"What is a severance plan?","A severance plan is a formal company policy document that establishes the rules for paying separation benefits to employees who are involuntarily terminated. It defines who is eligible, how much they receive, when payment is made, and what conditions — such as signing a release — must be met. Unlike an individual severance agreement negotiated case by case, a plan applies a consistent formula across an entire workforce or employee category.\n",{"question":400,"answer":401},"Is a company legally required to offer severance?","In the United States, no federal law requires private employers to provide severance pay. However, once a company establishes a written severance plan, ERISA may treat it as a welfare benefit plan with enforceable obligations. Some states have additional rules, and individual employment contracts or offer letters may create contractual severance obligations regardless of whether a formal plan exists. Consult an employment attorney to confirm your obligations before publishing a plan.\n",{"question":403,"answer":404},"What is a typical severance formula?","The most common formula for non-executive employees is one to two weeks of base salary per completed year of service, with a minimum of two weeks and a maximum of 26 weeks. Executive plans typically run higher — often one to three months per year of service. The right formula depends on your industry, workforce tenure profile, and budget. Setting a floor and ceiling is essential to cap total liability.\n",{"question":406,"answer":407},"What is the difference between a severance plan and a severance agreement?","A severance plan is a company-wide policy document that pre-establishes the rules for all eligible employees. A severance agreement is a bilateral contract signed between the company and a specific departing employee, often as part of the release process. The plan sets the terms; the agreement documents the individual transaction and the employee's waiver of claims. Both documents are typically needed when executing a separation.\n",{"question":409,"answer":410},"Does a severance plan need to include a release of claims?","It does not need to, but conditioning severance on a signed release is standard practice. A release protects the employer from most employment claims in exchange for the severance payment. For employees 40 and older, the Age Discrimination in Employment Act requires at least 21 days to consider the release and a 7-day revocation period. For group reductions in force, the consideration period extends to 45 days under the OWBPA.\n",{"question":412,"answer":413},"How does a severance plan interact with ERISA?","A severance plan that provides benefits beyond a single pay period may be classified as an ERISA welfare benefit plan. ERISA imposes reporting, disclosure, and claims-procedure obligations on covered plans. Small employers and plans that pay out within two years of termination may qualify for the payroll practice exemption. Because ERISA classification has significant compliance implications, review your plan structure with benefits counsel before distribution.\n",{"question":415,"answer":416},"Should the severance plan address equity vesting?","Yes — and this is one of the most commonly omitted sections. If the plan is silent on equity, employees often argue that unvested awards should accelerate or that the severance plan creates a separate entitlement. Address every equity award type explicitly: state that unvested awards are forfeited on the separation date unless the applicable equity plan or award agreement provides otherwise, and reference the equity plan by name.\n",{"question":418,"answer":419},"Can a company change or cancel its severance plan?","Generally yes, provided the plan document reserves the right to amend or terminate with reasonable advance notice — typically 30 days — and the amendment does not reduce benefits for employees who have already been notified of their separation. Without an amendment provision, courts may treat the plan as an ongoing contractual commitment. Once an employee has been told they are being let go under the plan's terms, those terms are typically locked in for that individual.\n",{"question":421,"answer":422},"What happens to health benefits after separation?","In the US, group health coverage typically ends on the last day of the month in which the employee separates. The employee then has the right to continue coverage under COBRA for up to 18 months at their own expense. Many severance plans include a company-paid COBRA subsidy of one to three months as part of the benefit package. The plan should specify the last day of coverage, whether and how long the company subsidizes COBRA, and who administers the continuation notice.\n",[424,428,432,436,440,444],{"industry":425,"icon_asset_id":426,"specifics":427},"Technology / SaaS","industry-saas","Equity treatment is central — plans must address RSU and stock option vesting explicitly, and acceleration provisions are common for senior technical roles.",{"industry":429,"icon_asset_id":430,"specifics":431},"Financial services","industry-fintech","Regulatory licensing obligations and broker protocol considerations shape post-separation obligations; bonus clawback provisions are standard in plan documents.",{"industry":433,"icon_asset_id":434,"specifics":435},"Manufacturing","industry-manufacturing","Large-scale RIFs trigger WARN Act notice obligations at the federal and state level; plans must coordinate severance payments with any required WARN pay-in-lieu.",{"industry":437,"icon_asset_id":438,"specifics":439},"Healthcare","industry-healthtech","Credentialing and licensing conditions affect when separation is effective; HIPAA obligations and patient non-solicitation clauses are standard post-separation terms.",{"industry":441,"icon_asset_id":442,"specifics":443},"Retail / Hospitality","industry-retail","High turnover and large hourly workforces make eligibility thresholds and minimum tenure requirements especially important to control plan cost exposure.",{"industry":445,"icon_asset_id":446,"specifics":447},"Professional services","industry-professional-services","Client non-solicitation is critical given fee-based relationships; plans frequently condition full severance on a transition period where the departing employee hands off accounts.",[449,452,455,458],{"vs":450,"vs_template_id":237,"summary":451},"Separation agreement","A separation agreement is a bilateral contract signed between the employer and a specific departing employee to document the severance amount and obtain a release of claims. A severance plan is the upstream policy document that pre-determines the terms. The plan tells HR what to offer; the separation agreement is the document the employee signs to claim those benefits.",{"vs":453,"vs_template_id":241,"summary":454},"Employee termination letter","A termination letter notifies the employee of the separation, the effective date, and the immediate logistics. It may reference the severance plan but does not define benefit entitlements in detail. The severance plan is the governing policy; the termination letter is the individual communication that triggers its application.",{"vs":456,"vs_template_id":247,"summary":457},"Employee handbook","An employee handbook is a broad reference guide covering all HR policies. A severance plan is a standalone document that carries more legal weight precisely because it is separate — courts are more likely to find an enforceable commitment in a dedicated plan than in a handbook disclaimer. High-stakes benefit programs like severance should always live outside the handbook.",{"vs":459,"vs_template_id":460,"summary":461},"Performance improvement plan","performance-improvement-plan-D13362","A performance improvement plan is used to document deficiencies and give an employee a structured opportunity to correct them before termination. A severance plan governs what happens after a separation decision has been made, and specifically applies to involuntary terminations that are not for cause. The two documents serve opposite ends of the exit process.",{"use_template":463,"template_plus_review":467,"custom_drafted":471},{"best_for":464,"cost":465,"time":466},"Small to mid-sized employers establishing a written severance policy for the first time","Free","2–4 hours",{"best_for":468,"cost":469,"time":470},"Employers with 50 or more employees, multi-state workforces, or equity compensation plans","$500–$1,500 for an employment attorney review","3–5 business days",{"best_for":472,"cost":473,"time":474},"Large employers, union environments, ERISA-covered plans, or companies preparing for a major RIF","$2,000–$6,000+","2–4 weeks",[476,477],"warn-act-obligations-explained","erisa-severance-plan-basics",[237,241,247,251,244,479,480,481,482,483,484,485],"employment-agreement_at-will-employee-D541","employment-agreement-executive-D543","non-disclosure-agreement-nda-D12692","job-offer-letter-long-D12769","fixed-term-contract-D13225","remote-work-agreement-D13282","letter-of-appreciation-to-employee-D664",{"emit_how_to":487,"emit_defined_term":487},true,{"primary_folder":111,"secondary_folder":489,"document_type":490,"industry":491,"business_stage":492,"tags":493,"confidence":499},"offboarding-and-references","policy","general","all-stages",[494,495,496,497,498],"offboarding","termination","severance","separation-benefits","hr-policy",0.95,"\u003Ch2>What is a Severance Plan?\u003C/h2>\n\u003Cp>A \u003Cstrong>Severance Plan\u003C/strong> is a formal company policy document that establishes the rules for paying separation benefits to employees who are involuntarily terminated — whether through a reduction in force, position elimination, or organizational restructuring. It defines eligibility criteria, the benefit formula (typically a set number of weeks of base salary per year of service), the conditions that must be met to receive payment (including signing a release of claims), and the payment schedule. Unlike a one-off severance agreement negotiated case by case, a severance plan applies consistent, documented terms across all covered employees, reducing the risk of claims that similarly situated employees were treated differently.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Without a written severance plan, every termination becomes a negotiation — and ad hoc decisions made under pressure expose the company to discrimination claims, inconsistent outcomes, and budget surprises. Employees terminated without a documented policy have sued successfully by arguing that prior practice or verbal promises created an implied entitlement. A formal plan defines exactly who qualifies, how much they receive, and what they must sign — giving HR, legal, and finance a single reference point for every separation event. It also signals to employees that the company handles exits with integrity, which matters for morale among the colleagues who remain. This template gives you a structured, editable starting point that covers the provisions most frequently scrutinized in employment disputes, so you can finalize and distribute a defensible policy in hours rather than weeks.\u003C/p>\n",1778773504147]