Document background
A Standard Severance Agreement is commonly used when employment relationships are terminated to provide clarity and finality for both parties. The agreement typically outlines severance compensation, benefits continuation, and releases of claims, while ensuring compliance with U.S. federal and state employment laws. It serves to protect both employer and employee interests by clearly defining post-employment obligations and rights. The document is particularly important in situations involving layoffs, restructuring, or voluntary separation programs, and must be carefully drafted to comply with various regulations including ADEA, OWBPA, and state-specific requirements.
