When it comes to terminating an employment relationship, it is important to have a clear and concise termination agreement contract in place. A termination agreement contract outlines the terms and conditions of the termination, including any severance pay, benefits, and legal obligations.
Below is a sample termination agreement contract that can be used as a starting point for drafting your own agreement:
TERMINATION AGREEMENT
This agreement is made and entered into on [date] by and between [employer name] (hereafter referred to as “Employer”) and [employee name] (hereafter referred to as “Employee”).
WHEREAS, Employee has been employed by Employer since [hire date] and Employer has decided to terminate Employee`s employment; and
WHEREAS, Employee and Employer desire to enter into a termination agreement to resolve any potential disputes that may arise as a result of the termination of Employee`s employment.
NOW, THEREFORE, in consideration of the mutual promises and agreements contained herein, Employer and Employee agree as follows:
1. Termination Date: Employee`s employment with Employer shall terminate on [termination date].
2. Severance Pay: Employer agrees to pay Employee a severance payment of [amount] within [number] days of the termination date.
3. Benefits: Employee`s health insurance, retirement plan, and other benefits shall cease on the termination date. Employer shall provide Employee with information on continuing certain benefits under COBRA.
4. Return of Property: Employee agrees to return all Employer property, including but not limited to keys, access cards, computers, and cell phones, to Employer on or before the termination date.
5. Confidentiality: Employee agrees to maintain the confidentiality of Employer`s trade secrets and confidential information, both during and after employment.
6. Non-Disparagement: Employee agrees not to make any derogatory or negative remarks concerning Employer or its employees, officers, or directors.
7. Release of Claims: Employee releases and forever discharges Employer and its officers, directors, employees, agents, and affiliates from all claims, actions, and damages arising out of or relating to Employee`s employment with Employer, including but not limited to claims under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, and the Americans with Disabilities Act.
8. Governing Law: This agreement shall be governed by and construed in accordance with the laws of the State of [state].
9. Entire Agreement: This agreement constitutes the entire agreement between the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings, and agreements between the parties, whether written or oral.
IN WITNESS WHEREOF, the parties have executed this agreement as of the date first set forth above.
[Employer Name]
By: ___________________________
Title: __________________________
[Employee Name]
By: ___________________________
Title: __________________________
While this sample termination agreement contract can serve as a starting point, it is important to tailor the agreement to the specific circumstances of the termination. In addition, it is recommended to have an employment lawyer review and provide input on the agreement before it is finalized.