Employment Exit Contract Template

Do I sign an employment separation agreement?

If the employee agrees and understands that the benefits provided are reasonable, and the company cannot provide a decent salary and work in the near future, it's best not to fight the separation agreement. Often, those benefits to which Employee would be entitled to receive upon separation from employment, and often the company is not obligated to pay the employee any additional benefits if the employment agreement allows for one-sided cancellation of the working relationship (including a notice period). The separation agreement benefits often are favorable for the employee, and in return, they ask for compliance with, and non-revocation of any provisions of, this Agreement. 

This Separation agreement consists of the following articles:

• Parties (Employer or Company);
• Separation date ;
• Final payment of wages ;
• Benefits (Stock options, Cobra, etc);
• Return of Property;
• Separation/Severance Benefits
• General Release of Claims.;
• General Release and Waiver of Claims;
• Claims Not Released;
• Governmental Agencies;
• Collective/Class Action Waiver;
• Release of Age Discrimination in Employment Act ADEA) Claims;
• Unemployment Benefits And References;
• Continuing Obligations Under Prior Agreements;
• Non-Disparagement;
• Employee Representation;
• Employee Affirmation;
• No Admission of Liability;
• Attorney Consultation and Fees;
• Time for Signing and Revocation of Agreement;
• Agreement Not To Be Construed Against Any Party;
• Consequences of Breach;
• Governing Law/Severability.
• Employee Acknowledgment Statement;
• Signatures.

By adopting a “better safe than sorry” attitude, most legal professionals would advise drafting an employment separation agreement for the majority of workplace terminations.  However, for many entrepreneurs and managers, this simply isn’t common practice.  In case of doubt, always consult a local lawyer that is experienced with labor law. Make sure not only to consider legal conditions, but also the existing working relationship. If you choose to sour the relationship with your boss, in the end, this might give difficulties later on when you are looking for a new job and you need their reference.

More often, employees cope with workplace discrimination and harassment If a workplace agreement provides that an employee who is absent from work for a while, or when an employee cannot be terminated, demoted, or laid off because she was pregnant.

Download this Employee Separation Contract template that helps those companies that enter into an agreement based on mutual negotiation and compromise with the Employee.