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9+ Simple Employment Separation Agreement Templates

An employment separation agreement sample is a document being offered by a company to ensure the knowledge of the resigning employee with regards to the separation proceedings that he/she has done with the employer. It also serves as the document that lets people and other entities know that the employee has agreed with the terms of separation.

This document is not required by law but is only a due process that is done by a company to provide all the information and terms about separation agreement and what the employee who is to resign can still expect to get from the employer.

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Employment Separation Agreement

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There could be various situations as to why an employee gets fired from a job. They can also sue you with a lawsuit or any other legal redress if they have not signed an agreement with the company that you have all the rights to fire someone if you are not happy with their performance. So, make sure that they sign an employment separation sample agreement, that helps limit lawsuits that the employee can file against the company.

Separation and Release Agreement Template

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A separation and release agreement template helps you avoid any legal distress. It states that the employee was a former worker in the company and that he/she has signed all the agreements so that he/she cannot go through any legal proceedings against the company as distress unless it truly is one.

General Employment Agreement Template

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A general employment agreement is to show that a company has hired an employee to use his/her services in the best way that they can so that they can help in the growth of the business of the company and that the employee renders to these services concerning the company. This should be signed by both the employer and the employee to be accepted as a legal agreement.

5 Steps to Create an Employment Separation Agreement:

Many employment separation agreement sample templates are available online for you to choose the best one out if the lot, so you do not have to create one from scratch. But if you want to design one on your own, then you can take the help of the following steps that would make it easy for you to make the right agreement for your organization:

Step 1: Introduction

The first step in creating an employment separation agreement is to decide the format of how your agreement is going to be. Once you have decided that, think about why are you creating this employee separation agreement, i.e. the purpose. This can also be called as the goal of your agreement, that is, what is it that you want to convey.

Step 2: Identify the Parties

Next, you will have to identify who the parties in the agreement are. In this case, it would be your company and the employee who is getting separated from the company. You have to mention the reasons for separation- this could be a personal reason that the employee decides to leave or that you are re-organizing some employees and you relieve them of their duties. Also, give background information about the relationship your company has had with the employee and why is it ending in the first place.

Step 3: Establish Terms

The heart of the agreement is what compensation you will give the employee at the time of this separation and how will it be paid. This is also called the severance package. Mention that if the employee has taken any leaves or vacation during the time of work in the company, whether or not they will be paid for that time should be mentioned in the agreement. See work agreement templates for more. If there are any additional services he/she has provided, mention what can you do for that and also, point out insurance claims if any.

Step 4: Post-Employment Obligations

Certain obligations have to be filled by the employee who is leaving the company. This means that he/she should return any of the documents they possess from the company immediately. You can also include a noncompete clause that states that this employee who you have relieved, cannot work with your competitors till a certain time. Also, mention in the agreement that all that you know about the company is confidential and that misusing that information is a punishable offense and you can take legal action against the employee.

Step 5: Signatures

After you are done with the agreement, allow the employee to read it. Mention how you will handle references and that you will give him/her a positive reference so that they can work without a problem. Designated references help you save the confidential information of your company to leak to others in any way. If you need more advice and help on how to create agreements, check out free agreement templates on our website.

Voluntary Employment Separation Agreement Template

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Voluntary separation is when employees decide for themselves that they want to leave the company for their reasons, also called as a resignation. During this, the company accepts the resignation and gives certain terms and conditions for the employee to follow. Legal agreement templates will help you create the perfect agreement contracts that are legally bound and make sure that all the parties involved in the contract are given equal priority.

Mutual Employment Separation Agreement Template

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A mutual separation employment agreement is where both the employee and the employer mutually agree to relieve themselves, that is, the employer agrees to release the employee from work and that the employee has asked for it too. Both parties mutually agree to terminate the contract that they have signed during the joining of the employee.

Standard Employment Separation Agreement Template

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The above template is an employment separation agreement between a company and one of its employees. It shows that in interest with both parties, it is decided that the employee will leave the position he/she is working in with dignity and utmost respect. Also, mention the confidentiality clause in each agreement. Check agreement templates in Word for more. It also mentions that there should be no legal claims against each other since it was in favor of both parties.

Free Employment Separation Agreement Template

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Termination of Employment Contract

A few things that the employee doesn’t get to enjoy anymore after signing the agreement are as follows:

Once an employment separation agreement has been signed, it means that all the benefits that an employee can get written in the employment contract and the responsibilities of the company to the employee is already annulled.

Employment Separation Agreement Template

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Company Employment Separation Agreement Template

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Model Employment Separation Agreement Template

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Considerations

Since the time of separation of the employee and the company may vary depending on the effective date of resignation, there are some considerations with regards to the terms of employment even if the employment contract will already be terminated. A few of these considerations are as follows:

With the help of the templates that are mention in this article, you can make the right separation agreement you need for your company so that you do not fall into the trouble of lawsuits later on. Use separation templates for more. Download them on any electronic device you need!

General FAQs

1. What is an Employment Separation Agreement?

An employment separation agreement can be defined as a document that describes the terms of termination between the employee that has been terminated and the employer. The agreement needs to be signed to be legally bound.

2. What is an Employment Separation Agreement used for?

An employment separation agreement is used to waive the right of the employee to sue the company he/she worked in, for wrongful termination or separation pay, if any. Employers can use a separation agreement for employees who have been fired or laid off.

3. Are Employment Separation Agreements legally binding?

Employment separation agreements do not require to be bound by law. Companies use them as a confidentiality seal for company information and to protect themselves from any lawsuits from employers. When this agreement is signed, an employee cannot sue the company for being terminated.

4. What should an Employment Separation Agreement include?

An employment separation agreement must include:

  • Details of employer and employee
  • Reason for separation
  • All interest, attorney fees, and claims
  • Additional clauses to protect business
  • Amount of severance pay, if any.

It saves the company from being sued and gives the employee the chance to waive off claims that are on him/her.

5. Can a Separation Agreement be negotiated?

A separation agreement is a legally enforceable understanding between the employer and the employee. It can be negotiated before joining or upon exit. If you have legal claims that you have to clear, then a time period is given to conclude the negotiation. This might last 2-4 weeks, depending on the situation.

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