Separation Agreement
Private and confidential. Intended only for the people named above.
HR
Employee Layoff & Separation Letter Template
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Parties, Termination Date, Liabilities
This agreement records the terms on which your employment ends. It is signed by both you and the company, whether you are leaving by choice or the company has ended your employment.
This Separation Agreement (the "Agreement") is made on the date shown on this document between [custom.employeeName] ("Employee") and [sender.company] ("Employer"). Employer and Employee are each a "Party" and together the "Parties".
Termination Date
Employee's final day of employment with Employer is [custom.separationDate] (the "Separation Date"). From that date, Employee is no longer an employee of Employer or authorized to act on its behalf.
Employer will pay all earned wages, payable unused paid time off, and approved business expenses submitted within 30 days after the Separation Date. Required deductions will apply, and payment will be made by the date required by law.
Employer will send the required tax forms for the year of separation. Health coverage will continue for 30 days after the Separation Date. Other benefits end on the Separation Date unless a plan says otherwise, and vested benefits are preserved.
Severance: If Employee signs this Agreement within the review period, does not revoke it, and keeps to its terms, Employer will pay Employee [custom.severanceAmount], less applicable deductions, within 14 days after the revocation period ends.
Liabilities
Each Party agrees to hold the other harmless from third-party claims resulting from its own negligence or wrongdoing in connection with this Agreement.
In return for the severance payment, Employee releases Employer and its owners, directors, officers, employees, insurers and agents from claims relating to Employee's employment or its end, and agrees not to file a lawsuit on any of the following:
- Wrongful or unlawful termination of employment.
- Breach of contract, written or implied.
- Discrimination, harassment or retaliation under federal, state or local law.
- Back wages, commissions, front pay, bonuses or other compensation, except as provided in this Agreement.
- Disability, retirement or reinstatement claims, except benefits already vested.
- Personal injury or damage to reputation.
- Interest, attorney's fees and costs.
Nothing in this section limits either Party's right to enforce this Agreement. Employer confirms that it knows of no existing claim against Employee.
This section protects the company from legal claims relating to your employment once you sign. It does not take away rights that the law says cannot be waived.
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Claims Not Released
This Agreement does not release or limit:
- Any claim that arises after Employee signs this Agreement.
- Employee's right to workers' compensation or unemployment benefits.
- Employee's rights to benefits already vested under a company benefit plan.
- Any claim that the law does not allow to be released by private agreement.
- Employee's right to file a charge with or take part in a government investigation, or to receive an award for information provided. Employee gives up only the right to recover money from Employer through such a charge, except where the law does not allow this.
- Employee's right to speak with an attorney, or discuss employment terms where the law protects that right.
Reinstatement
This section says whether the company will consider hiring you again.
Employee understands that Employer is not required to re-employ Employee and may decline any future application without giving a reason.
Employee remains bound by valid confidentiality, non-disclosure, non-compete and non-solicitation agreements signed with Employer after the Separation Date.
Employee will not use or share Employer's confidential information and will return or delete any confidential materials in Employee's possession by the Separation Date.
Property
Please return everything that belongs to the company on or before your last day.
On or before the Separation Date, Employee will return all Employer property in good condition, including:
- Laptop, phone, tablet and other equipment.
- Company cards, keys, ID badges and access cards.
- Documents, files, notes and records, in paper or digital form.
- Any other items issued by Employer.
Employee keeps no rights to these items. Personal information may be removed from returned devices, and Employee may keep personal contacts and personal documents such as payslips and benefit information.
The Parties will keep the terms of this Agreement and shared confidential information private, except that Employee may share them with the following, who must also keep them private:
- Employee's spouse or partner and immediate family.
- Legal, tax and financial advisers, and government agencies.
If a court orders disclosure, Employee will give Employer written notice first where the law allows.
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Relief
If either Party breaks this Agreement, the other Party may seek available legal remedies and, where allowed by law, recover reasonable enforcement costs.
Disclosure
Questions about this Agreement, and requests for employment verification or references, should be sent to [custom.name] at [custom.email].
Non-disparagement: Each Party agrees not to make false or damaging statements about the other, in public or to customers, clients or partners. Employer will give this instruction to its senior leadership. This does not stop either Party from giving truthful testimony, making required legal disclosures, or using the rights listed in Claims Not Released.
References: Employer will confirm only Employee's job title, dates of employment and, if Employee agrees in writing, pay. Any further reference will be given according to company policy.
No admission: This Agreement is not an admission by either Party that it has done anything wrong or has broken any law, contract or duty.
Understanding
Employee confirms that Employee has received no other promises, threats or incentives to sign this Agreement apart from those written here.
Employee also confirms that Employee fully understands this Agreement and agrees that the amounts and benefits it provides are fair.
Agreement
You have time to read this agreement and talk to a lawyer before you sign. After you sign, you still have 7 days to change your mind.
Employee has at least 21 days after receiving this Agreement to review and consider it. Employee may sign sooner but is not required to. A change to this Agreement does not restart the review period unless the change is a material one.
Employee may use this time to get legal advice, and Employer advises Employee in writing to speak with an attorney of Employee's choice before signing.
After signing, Employee has 7 days to revoke this Agreement by sending written notice to [custom.name] at [custom.email]. This Agreement does not take effect, and no severance is paid, until the 7-day period has ended without revocation.
Severability
If a court finds any part of this Agreement to be illegal, invalid or unenforceable, that part will be limited or removed as far as needed. The rest of the Agreement stays in full effect.
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Jurisdiction
This Agreement is governed by the laws of the state where Employee worked for Employer, and any legal action about it will be brought in the courts of that state.
Entirety
This Agreement, and any agreements it refers to, set out the entire agreement and understanding between the Parties about the end of Employee's employment.
This Agreement replaces all earlier spoken or written agreements between the Parties on the same subject, unless this Agreement says otherwise. Any change must be in writing and signed by both Parties.
Agreement
Both parties sign this agreement electronically using the fields below. Once it is signed, you and the company can each download a copy for your records.
By signing below, the Parties confirm that they have had ample opportunity to review this Agreement with an attorney.
The Parties confirm that they have read, understood and agree to every provision of this Agreement.
Employee confirms that Employee is entering into this Agreement of their own free will, without pressure or coercion.
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