Separation Agreement And Release Template for United States

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Key Requirements PROMPT example:

Separation Agreement And Release

"Need a Separation Agreement And Release for a senior software engineer leaving our tech company on March 15, 2025, including standard non-compete provisions and special clauses about ongoing technical documentation support for 3 months post-departure."

Document background

A Separation Agreement And Release is essential when terminating an employment relationship in the United States, particularly when providing severance benefits. This document serves multiple purposes: it provides clarity on separation terms, protects the employer from future claims, and gives the employee certain benefits in exchange for releasing claims. The agreement must carefully balance various federal and state requirements, particularly regarding age discrimination (ADEA), benefits (ERISA), and wage laws (FLSA). It's commonly used in corporate restructuring, voluntary departures, and negotiated exits.

Suggested Sections

1. Parties: Identification of employer and employee with full legal names and addresses

2. Background: Context of employment relationship and reason for separation

3. Definitions: Key terms used throughout the agreement

4. Separation Date: Specific date employment relationship ends

5. Consideration: Details of severance payment or other benefits provided

6. General Release: Comprehensive release of claims against employer

7. Return of Property: Requirements for returning company property

8. Confidentiality: Ongoing obligations regarding confidential information

9. Governing Law: Jurisdiction and applicable law

Optional Sections

1. Non-Compete: Restrictions on future employment in competitive industries, used when protecting legitimate business interests

2. Non-Solicitation: Restrictions on soliciting employees or customers, used when protecting customer relationships and workforce stability

3. Reference Provision: Terms of future employment references, used when parties want to establish clear parameters for future references

4. Outplacement Services: Career transition assistance provisions, typically included for senior employees

Suggested Schedules

1. Schedule A - Severance Calculation: Detailed breakdown of severance payment calculation

2. Schedule B - Company Property Checklist: List of company property to be returned

3. Schedule C - Benefit Continuation Details: Specific information about ongoing benefits and COBRA rights

4. Schedule D - Stock Options/RSUs: Details of treatment of equity compensation, included when employee has equity compensation

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Technology
Financial Services
Healthcare
Manufacturing
Professional Services

Relevant Teams

Human Resources
Legal
Finance
Information Technology
Operations

Relevant Roles

Chief Executive Officer
Senior Manager
Software Engineer
Sales Representative
Administrative Staff

Industries

Age Discrimination in Employment Act (ADEA): Federal law requiring specific provisions for workers 40 and older, including mandatory 21-day review period and 7-day revocation period

Older Workers Benefit Protection Act (OWBPA): Federal law providing additional protections for older workers and establishing requirements for valid waivers

Title VII of the Civil Rights Act: Federal law governing discrimination claims considerations and protected class waivers

Fair Labor Standards Act (FLSA): Federal law governing wage and hour considerations; certain wage claims cannot be waived

Employee Retirement Income Security Act (ERISA): Federal law governing benefits continuation rights and pension/retirement considerations

State Labor Laws: State-specific employment regulations that may affect separation terms and conditions

State Release Requirements: State-specific requirements for valid releases and waivers

Non-compete Regulations: State-specific restrictions and requirements for non-compete and non-solicitation clauses

Unemployment Compensation Rules: State-specific regulations regarding unemployment benefits and eligibility post-separation

State Notice Requirements: State-specific mandatory notice periods and documentation requirements

Severance Provisions: Legal requirements for structuring severance pay terms and conditions

Confidentiality Requirements: Legal framework for confidentiality provisions and their enforceability

Non-disparagement Regulations: Legal considerations for including and enforcing non-disparagement clauses

Company Property Return: Legal requirements regarding the return of company property and intellectual property rights

COBRA Requirements: Federal and state requirements for continuation of health benefits post-employment

Reference Provisions: Legal framework for structuring future employment reference terms

Claims Release Language: Legal requirements for valid and enforceable claims release provisions

Consideration Requirements: Legal standards for adequate consideration in separation agreements

Tax Implications: Federal and state tax considerations for separation payments and benefits

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Let's create your Separation Agreement And Release

Authors

Alex Denne

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