Free Legal Employment & Labor Severance Agreement

This Employment & Labor Severance Agreement (hereinafter referred to as the "Agreement") is made and entered into this day of [Month Day, Year], by and between [Your Company Name] (hereinafter referred to as the "Company") and [Employee's Name] (hereinafter referred to as the "Employee"), collectively referred to as the “Parties”.

I. TERMINATION

A. Termination Date

The Employee’s employment with the Company will terminate on [Month Day, Year]. This date, referred to as the (“Termination Date”) throughout this Agreement, marks the official end of the Employee’s professional relationship with the Company.

B. Reason for Termination

The termination is a result of organizational restructuring. This is a common reason for employment termination where the Employee’s position is being eliminated due to changes in the Company’s operational structure. This decision is not a reflection of the Employee’s performance or conduct.

C. Mutual Agreement

The Employee and the Company agree to part ways amicably. Both parties acknowledge that this decision is in their mutual best interest. They agree to maintain a professional demeanor during the transition period and to refrain from any actions that could harm the reputation of either party.

II. SEVERANCE PAYMENT

A. Payment Amount

The Company agrees to provide the Employee a severance payment equivalent to six months of the Employee’s current salary, amounting to $[50,000]. This amount has been determined based on the Employee’s length of service and is intended to ease the transition to new employment.

B. Payment Schedule

1. Initial Payment: A portion of the severance payment, amounting to $[10,000], will be payable within [30] days of the Termination Date. This initial payment is intended to provide immediate financial support to the Employee following the termination of their employment.

2. Subsequent Payments: The remaining balance of $[40,000] will be paid in equal installments over the course of the next five months. These regular payments are designed to provide a steady income stream for the Employee while they seek new employment opportunities.

3. Payment Method: All payments will be made via direct deposit to the Employee’s bank account or by check, as per the Employee’s preference. The Company will ensure that all payments are made on time and in accordance with the schedule outlined in this Agreement.

C. Tax Deductions

All severance payments made under this Agreement will be subject to applicable tax withholdings and deductions as required by law. The Employee will receive a detailed breakdown of these deductions with each payment. This ensures transparency and allows the Employee to understand the exact calculations behind the net amount received.

D. Final Paycheck

In addition to the severance payment, the Employee will receive their final paycheck on their last day of employment or as otherwise required by state law. This paycheck will include payment for all work performed up to the Termination Date, as well as any accrued but unused vacation pay. The Company will provide a detailed breakdown of the final paycheck, including gross pay, deductions, and net pay, to ensure full transparency.

III. NON-DISCLOSURE AND CONFIDENTIALITY

A. Confidentiality Obligation

The Employee agrees to maintain the confidentiality of all proprietary information about the Company, its clients, and its business operations. This obligation extends beyond the termination of employment and includes, but is not limited to, the following:

1. Company Information: The Employee will not disclose any information regarding the Company’s business operations, strategies, financials, or any other information that is not publicly available. This includes, but is not limited to, internal reports, strategic plans, unpublished financial information, price lists and pricing structures, customer lists, and proprietary technology.

2. Client Information: The Employee will not disclose any information about the Company’s clients, including their identity, business dealings with the Company, or any other confidential information. This includes, but is not limited to, client lists, contracts, and client service needs.

3. Non-Disclosure: The Employee will not use any confidential information for their own benefit or the benefit of others, and will not disclose any confidential information to any person or entity outside the Company, except as required by law or with the Company’s written consent. This includes, but is not limited to, sharing information with competitors, or using the information for personal gain.

B. Return of Company Property

Upon termination of employment, the Employee agrees to return all Company property, including, but is not limited to, documents, files, equipment, and other materials that contain or pertain to confidential information. This includes:

1. Company Documents and Files: All documents and files, whether in hard copy or digital format, that contain confidential information must be returned to the Company. This includes, but is not limited to, reports, manuals, correspondence, customer lists, computer programs, and all other materials and all copies thereof relating in any way to the Company’s business, or in any way obtained by the Employee during the course of employment.

2. Company Equipment: All Company equipment, including, but is not limited to, computers, laptops, smartphones, tablets, printers, and other electronic devices, must be returned to the Company in good working condition.

C. Non-Compete

For a period of one year following the Termination Date, the Employee agrees not to engage in any employment, business, or activity that is in any way competitive with the business or proposed business of the Company. The Employee agrees not to solicit or induce any employee or independent contractor to terminate their relationship with the Company in order to join, associate, or become employed with any business or activity that competes with the Company.

IV. RELEASE OF CLAIMS

A. Release of Claims

The Employee hereby releases and forever discharges the Company, its affiliates, and its employees from any and all claims, lawsuits, or actions that the Employee may have arising out of or in connection with the Employee’s employment and the termination thereof. This includes, but is not limited to:

1. Employment Claims: Any claims related to the Employee’s employment, including but not limited to, claims for wages, benefits, or other compensation. This includes, but is not limited to, claims for salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership interests in the Company.

2. Termination Claims: Any claims related to the termination of the Employee’s employment, including but is not limited to, claims for wrongful termination, discrimination, or harassment. This includes, but is not limited to, claims that the Company discriminated against the Employee or harassed the Employee on the basis of age, race, sex, religion, national origin, marital status, disability, or any other status protected by law.

3. Legal Claims: Any claims under any federal, state, or local law or regulation relating to employment, including but not limited to, the Fair Labor Standards Act, the Civil Rights Act, the Americans with Disabilities Act, and the Family and Medical Leave Act. This includes, but is not limited to, claims for discrimination, harassment, retaliation, violation of public policy, violation of the covenant of good faith and fair dealing, defamation, or breach of contract.

B. Exceptions

This release does not apply to any claims that cannot be waived by law. This includes, but is not limited to:

1. Workers’ Compensation Benefits: The Employee’s right to file a claim for workers’ compensation benefits in the event of a work-related injury or illness is not waived by this Agreement.

2. Unemployment Insurance Benefits: The Employee’s right to seek unemployment insurance benefits is not waived by this Agreement.

3. Other Non-Waivable Rights: Any other right or claim that by law the Employee cannot waive, such as the right to file a charge with or participate in an investigation conducted by the Equal Employment Opportunity Commission or any other federal, state or local agency charged with the enforcement of employment laws.

V. GOVERNING LAW

A. Applicable Law

This Agreement shall be governed by and construed in accordance with the laws of [State Name] without regard to its conflict of laws principles. This includes, but is not limited to:

1. Employment Laws: All provisions in this Agreement comply with the employment laws of [State Name]. This includes, but is not limited to, laws related to employment termination, severance pay, non-disclosure agreements, and non-compete agreements.

2. Contract Laws: This Agreement is a contract between the Employee and the Company, and thus, is subject to the contract laws of [State Name]. This includes, but is not limited to, laws related to contract formation, performance, breach, and remedies for breach.

3. Dispute Resolution: Any disputes arising out of or in connection with this Agreement shall be resolved in accordance with the laws of [State Name]. This includes, but is not limited to, laws related to contract disputes, employment disputes, and alternative dispute resolution procedures. The Company is committed to resolving any disputes in a fair and equitable manner in accordance with these laws.

B. Jurisdiction

The courts located within the state of [State Name] will have exclusive jurisdiction over any disputes or legal proceedings arising out of or in connection with this Agreement. This includes, but is not limited to:

1. Court Proceedings: If a dispute arises that results in a court proceeding, such proceeding will take place in a court located within the state of [State Name]. Both parties consent to this jurisdiction and agree not to seek a transfer of the case to another jurisdiction.

2. Legal Remedies: In the event of a breach of this Agreement, the non-breaching party may seek legal remedies in accordance with the laws of [State Name]. This includes, but is not limited to, remedies for breach of contract, remedies for employment law violations, and remedies for violation of non-disclosure or non-compete agreements.

VI. SIGNATURES

This Agreement has been read, understood, and duly executed by the Parties as a testament to their full agreement and acceptance of the terms and conditions set forth herein.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

[Signature]

[Authorized Representative Name]

[Your Company Name]

Company

Date: [Month Day, Year]

[Signature]

[Employee's Name]

Employee

Date: [Month Day, Year]

Legal Templates @ Template.net