A Generic Separation Agreement serves as a critical tool for employers and employees to achieve a clean break in their employment relationship while protecting both parties' interests. This document is typically used when an employment relationship is ending through termination, resignation, or mutual agreement. It outlines severance benefits, establishes post-employment obligations, and includes a release of claims to prevent future litigation. Under U.S. law, specific requirements must be met for the agreement to be enforceable, particularly regarding age discrimination waivers and consideration periods. The agreement should be customized based on state jurisdiction, industry requirements, and specific circumstances of the separation.
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1. Parties: Identification of employer and employee with full legal names and addresses
2. Background: Brief description of employment relationship and reason for separation
3. Definitions: Key terms used throughout the agreement
4. Separation Date: Specific date employment ends and final day of work
5. Severance Payment: Amount, timing, and conditions of severance payment
6. General Release: Employee's waiver of claims against employer
7. Confidentiality: Requirements regarding non-disclosure of agreement terms and company information
1. Non-Compete: Restrictions on future employment with competitors - use when protecting legitimate business interests is crucial
2. Non-Solicitation: Restrictions on soliciting employees or customers - use when protecting customer relationships and workforce stability is important
3. Outplacement Services: Provision of career transition assistance - use when offering additional support services to departing employee
4. References: Agreement on how future employment references will be handled - use when specific arrangements for references are needed
1. Schedule A - Benefits Summary: Detailed list of benefits continuation and termination dates
2. Schedule B - Company Property: Itemized list of company property to be returned
3. Schedule C - Outstanding Stock Options: Summary of treatment of equity compensation - use when employee has equity-based compensation
4. Appendix 1 - ADEA Rights Notice: Required notice of rights under age discrimination laws for employees over 40
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