Find the Best Severance Agreement Template Online

Can a Severance Agreement Template Help You Create Your Contract?

Terminating a business relationship can be difficult and stressful. To safeguard the interests of both parties and prevent disputes, the employer should create a severance agreement.

Most people don’t know how to write a proper contract, so they opt for a severance agreement template. Even though they seem promising, online samples are often outdated and unreliable. We will help you make your contract and teach you how to compose any legal document stress-free within minutes!

Severance Agreement Explained

A severance agreement is a contract an employer offers to an employee once the company decides to terminate the collaboration with them. It outlines the guidelines both parties should follow when the separation takes place.

By offering this contract, the employer wants to ensure that the employee won’t file any lawsuits against them or damage their reputation in any other way. If the employee signs the document, they give up the right to take the employer to court, agreeing to settle all differences and disputes amicably.

After the company offers a severance agreement, it must give the employee some time to decide whether they want to accept it. The USA laws don’t propose a specific deadline for making a decision, but two particular acts may help in some cases:

  1. Older Workers Benefit Protection Act, stating that the employees who are over 40 must have a minimum of 21 days to decide whether they want to sign the document. They also have seven days to withdraw their decision if they change their mind
  2. Work Adjustment and Training Notification Act, stating that all companies and organizations with more than 100 employees must inform their workers about any department close-downs at least 60 days before it happens. If they fail to do it, they must provide severance pay for all the employees who lost their job

What Should a Simple Severance Agreement Template Include?

Check out the table listing the essential provisions a severance agreement should contain:

Identification of both parties
  • First names
  • Last names
  • Company
  • Signatures
  • Mailing addresses
General details
  • Date of signing
  • Employment termination date
  • Employment termination reason
Severance pay
  • Will the employer pay severance to the employee?
  • How much do they have to pay?
  • Will the employee get all the money at once or in installments?
  • Does the severance pay include any unpaid bonuses?
  • How will the payment be scheduled?
  • What will the payment method be?
  • What is the payment structure?
Other provisions
  • Tax and insurance details
  • Return of property
  • Responsibilities of both parties
  • Access to benefits
  • Indemnification clause

Are There Additional Provisions Regarding the Employee’s Rights?

A severance agreement can also contain some optional clauses regarding the other rights the employee should give up on. These include the:

  1. Non-disclosure clause stating that the employee mustn’t disclose the details of the company’s finances, strategies, and trade secrets. The employer can also insist on keeping the agreement terms and conditions private
  2. Non-compete clause preventing the employee from working for the company’s competitors for a certain period. It also prevents them from developing a new business that may become the company’s competitor
  3. Non-disparagement clause preventing the employee from disclosing specific details about the employer or the employment termination reason

DoNotPay Helps You Create Your Contracts Effortlessly

People don’t want to waste exorbitant amounts of money on attorneys, which is why they try to compose contracts themselves. These attempts are often unsuccessful due to the lack of expertise. Using free online templates is quite risky since they are usually unverified or outdated.

Your best bet is to rely on DoNotPay and let us create a perfect agreement for you! We offer a vast database with various customizable templates. All you need to do is modify them according to your needs!

Here’s how to do it:

  1. in your web browser
  2. Type in the name of the document in the search box
  3. Answer the questions about the contents of your contract

We will create the desired document in the blink of an eye! Sign it to make it legally binding or have it notarized if necessary.

What Customizable Templates Does DoNotPay Offer?

We created a bunch of useful document templates for you. and generate the best:

Make sure you check out our articles about the most sought-after documents, such as the:

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