The Settlement Agreement Between Employee And Employer is utilized when parties wish to resolve employment-related disputes or facilitate a mutually agreed separation. It's commonly used in situations involving termination, discrimination claims, wage disputes, or voluntary separation packages. The document typically includes settlement amount, release of claims, confidentiality provisions, and other terms specific to U.S. employment law. It must comply with federal and state regulations, particularly when dealing with age discrimination claims or mass layoffs. This agreement provides legal protection for both parties and creates a clear record of the resolution terms.
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1. Parties: Identification of the employer and employee with full legal names and addresses
2. Background: Brief history of employment relationship and circumstances leading to settlement
3. Definitions: Key terms used throughout the agreement including effective date, parties, claims, and other relevant definitions
4. Settlement Payment: Amount, timing, method of payment, and tax implications of the settlement amount
5. Release of Claims: Comprehensive release of all known and unknown claims, including specific statutory references
6. Confidentiality: Terms regarding confidentiality of the settlement agreement and its terms
7. Non-Admission: Statement that settlement does not constitute admission of liability by either party
8. Governing Law: Specification of jurisdiction and applicable law governing the agreement
1. Non-Compete Provisions: Restrictions on future employment and competition with the employer
2. Return of Company Property: Requirements and timeline for returning company assets and confidential information
3. Reference Provision: Terms regarding future employment references and communication about employment
4. Outplacement Services: Details of career transition assistance if provided as part of settlement
5. Non-Disparagement: Mutual obligations to refrain from making negative statements about each other
6. COBRA Continuation: Terms regarding continuation of health benefits and payment obligations
1. Schedule A - Payment Terms: Detailed breakdown of settlement payment structure and timeline
2. Schedule B - Release Language: Specific statutory rights being waived and detailed release provisions
3. Schedule C - Company Property List: Itemized list of company property to be returned by the employee
4. Schedule D - Reference Letter: Agreed form of reference letter or statement to be provided to future employers
5. Schedule E - ADEA Disclosure: Required disclosure for employees over 40 under the Age Discrimination in Employment Act
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