The Employee Exit Agreement serves as a comprehensive document that protects both employer and employee interests during employment separation. It is typically used when an employee leaves voluntarily or through mutual agreement, and especially when severance benefits are offered. The agreement includes critical elements such as final compensation, benefits continuation, confidentiality obligations, and release of claims. In the United States, these agreements must carefully consider federal regulations like ADEA and OWBPA, particularly for employees over 40, as well as state-specific employment laws that may affect enforceability.
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1. Parties: Identification of the employer and employee
2. Background: Brief context of employment relationship and reason for separation
3. Definitions: Key terms used throughout the agreement
4. Separation Date: Clear statement of employment termination date
5. Final Compensation: Details of final salary, benefits, and accrued vacation payment
6. General Release of Claims: Employee's waiver of legal claims against employer
7. Return of Company Property: Requirements for returning company assets and materials
8. Confidentiality Obligations: Ongoing duties regarding confidential information
1. Severance Payment: Terms of any additional compensation offered as part of the exit package
2. Non-Compete Provisions: Restrictions on future employment and competitive activities
3. Outplacement Services: Details of career transition support provided by the company
4. Reference Provisions: Agreement on how future employment references will be handled
5. COBRA Notice: Healthcare continuation rights and requirements under COBRA
1. Schedule A - Company Property Checklist: Itemized list of company property to be returned by the employee
2. Schedule B - Final Compensation Breakdown: Detailed calculation of final payments including salary, benefits, and other compensation
3. Schedule C - Benefits Summary: Overview of post-employment benefits and continuation rights
4. Appendix 1 - ADEA Disclosure: Required age discrimination disclosures for employees over 40
5. Appendix 2 - State-Specific Notices: Required state law disclosures and notices
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