Resignation and Severance Agreement between Employer and Employee
What this document covers
The Resignation and Severance Agreement is a legal document that formalizes the resignation of an employee from their employer while also stipulating the severance pay to be provided. This agreement serves as a full release of any claims the employee may have against the employer, offering a clear understanding of the terms of separation. Unlike standard resignation letters, this form outlines specific financial arrangements and legal protections, ensuring both parties are informed of their rights and obligations following the resignation.
- Identification of the parties involved (Employer and Employee).
- Effective date of resignation and acknowledgment of its irrevocability.
- Details on the severance pay, including amounts and payment schedule.
- Acknowledgment of voluntary resignation and potential impact on unemployment benefits.
- A comprehensive release of claims against the employer by the employee.
Common use cases
This form is useful in situations where an employee decides to resign from their job and negotiates severance pay as part of their exit. It is appropriate when an employer wishes to provide financial support during the transition and when both parties agree to release any legal claims against one another. This may be relevant in cases of layoffs, mutual separations, or voluntary resignations where terms of departure need to be clearly defined.
Who can use this document
- Employers wishing to formalize a severance agreement with an exiting employee.
- Employees who are resigning and seeking negotiated severance benefits.
- Companies looking to minimize future legal risks by ensuring clarity in the separation process.
How to prepare this document
- Identify and enter the names and addresses of the Employer and Employee.
- Specify the Employee's job title and the effective date of resignation.
- Detail the severance pay amount and payment schedule.
- Acknowledge and sign the release of claims clause by both parties.
- Ensure all parties sign and date the form to validate the agreement.
Notarization requirements for this form
Notarization is generally not required for this form. However, certain states or situations might demand it. You can complete notarization online through US Legal Forms, powered by Notarize, using a verified video call available anytime.
Common mistakes
- Failing to clarify the exact terms of severance pay.
- Not specifying the effective date of resignation clearly.
- Neglecting to have both parties sign the agreement.
- Overlooking state-specific legal requirements or terms.
Benefits of completing this form online
- Convenience of immediate download and access.
- Editability to tailor the agreement to specific situations.
- Reliability as the forms are drafted by licensed attorneys.
- Elimination of complex legal language, making it user-friendly.
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FAQ
A severance agreement is a legal document that goes over all of the responsibilities and rights of each party involved - the employee and the employer. The document lays out all of the benefits offered by the company - including pay, insurance, etc - while also ensuring that the employee was not wrongfully let go.
Severance agreements are offered and signed as part of a hiring process. It becomes part of an attractive benefits package. It may include monetary stipends that are earned over time, and are paid out at the time of termination.On the other hand, a separation agreement is offered and signed at the time of termination.
The name of the employer and employee. The effective date of the agreement. The employment period of the outgoing employee. The severance pay amount. Terms of continuation of benefits. Employee waiver of legal claims.
Although you don't have to sign a severance agreement, your employer may make it a condition of receiving severance pay.However, in most cases, an employer is free to condition severance on the employee signing the agreement. In other words, if the employee refuses to sign, the employee won't get any severance pay.
The main purpose of a severance agreement is to prevent your employees from filing for a wrongful termination lawsuit against your company, but there are several reasons a company could opt to provide a severance package.
An employee separation agreement is a legal document that lays out an understanding between a company and a terminated employee. After both parties sign, the terminated employee gives up their right to take legal action against the company in the future (i.e. suing for wrongful termination or severance pay).
If your employer fails to give you the required notice, then you are legally entitled to severance pay. An individual employee who's fired without notice may receive it too, but it's highly discretionary.
Compensation details. Confidentiality rules following termination. Date of employee's termination. Agreement from both parties in the form of a signature. Details about how long the employee will continue to have access to benefits.
If your severance agreement included a release, you may have given up the right to sue your former employer. Some employers offer severance to employees who lose their jobs. Often, however, employees who want a severance package have to sign a release or waiver, by which they give up their right to sue the company.
