Employment Separation Agreement Template

Employment Separation Agreement Template: A Comprehensive Guide

An employment separation agreement is a legal document that outlines the terms and conditions of a separation between an employer and employee. It is commonly used when an employee is laid off, terminated, or resigns from their job. A separation agreement typically includes provisions related to severance pay, benefits, and confidentiality.

If you are an employer or an employee going through a separation, it is important to have a clear and comprehensive agreement that protects everyone`s interests and rights. However, creating a separation agreement from scratch can be time-consuming and complicated. That`s why many businesses and HR departments use a template to simplify the process and ensure that all necessary provisions are included.

In this article, we will provide a guide to creating an effective employment separation agreement using a template. We will cover the basics of a separation agreement, what to include in the document, and how to use a template to create a customized agreement.

Basics of an Employment Separation Agreement

An employment separation agreement is a legally binding document that serves as a mutual agreement between an employer and employee. Generally, these agreements are used to specify the terms and conditions of an employee’s departure from a company. It may also be prepared as a means of avoiding litigation in the future.

The agreement usually covers a wide range of issues related to the circumstances surrounding the separation. Generally, it includes the terms of the severance package, as well as a number of key provisions intended to protect the rights of both parties.

What to Include in an Employment Separation Agreement

A comprehensive employment separation agreement template should cover the following provisions:

1. Severance Pay: This section specifies the amount and timing of the severance pay, as well as any other compensation owed to the employee, such as unused vacation time or bonuses.

2. Benefits: This section outlines what benefits, if any, will continue for the employee after the separation. This includes health insurance, retirement plans, or stock options.

3. Non-Compete: A non-compete clause is a contract that prohibits an employee from working in the same field or for a competing company for a certain period of time. If the employee agrees to this provision, they must sign it as part of the separation agreement.

4. Confidentiality: This section outlines the employee`s obligation to keep confidential information private. This includes trade secrets, customer lists, and other sensitive information.

5. Release of Claims: This section requires the employee to waive any future legal claims they may have against the company. In return, the company agrees to waive any claims they may have against the employee.

Using a Template to Create an Employment Separation Agreement

An employment separation agreement template is a pre-drafted document that provides a framework for creating a customized agreement for your specific situation. The advantage of using a template is that you can save time and ensure that all of the necessary provisions are included.

When using a template, follow these key steps:

1. Choose a reputable template: There are many different templates available online, but be sure to choose one that is reputable and trusted by legal professionals.

2. Customize the template: Use the template to guide you in creating a customized agreement for your specific situation. Be sure to include all necessary provisions, as outlined above.

3. Have an attorney review the agreement: Even if you`re using a template, it`s always a good idea to have an attorney review the agreement to ensure that it`s legally sound and protects your interests.


Creating an employment separation agreement can be a difficult and time-consuming process, especially if you`re not familiar with the legal language and requirements. Using a template can help streamline the process and ensure that all necessary provisions are included. With a comprehensive agreement in place, both the employer and employee can move forward with confidence, knowing that their rights and interests are protected.