Employment Separation Agreement Without Financial Disclosure
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FAQ
Are There Differences in Severance and Separation Pay? Upon termination, severance pay and separation pay are interchangeable terms. Although some companies may distinguish between separation pay and severance pay packages, the distinction is not universally applied.
A severance package is a combination of money and benefits that an employer pays to a separated employee. A severance agreement is very similar to a separation agreement, but the amount of severance pay and benefits is usually determined by a specific employment contract, severance policy, or severance plan.
If there is potential for a released employee to file a wrongful termination lawsuit on the grounds of discrimination or retaliation (or for other less-common reasons), the employer should strongly consider drafting an employee separation agreement.
THE BASICS. A severance agreement is a legally enforceable agreement between you and your employer. You can negotiate it up front or upon exit. Once you sign the agreement, you give up any chance of suing the employer in the future.
The main difference between resignation and termination lies in who initiated the severance of employment. With a resignation, you decide to end your employment; whereas in contrast, with a termination, your employer makes the decision to end your employment.