The Employment Release Agreement is a critical document used when ending an employment relationship in the United States. It's typically implemented during voluntary separations, layoffs, or negotiated departures to provide clarity and finality to both parties. The agreement details severance arrangements, outlines post-employment obligations, and includes comprehensive releases of claims while ensuring compliance with federal and state employment laws. It's particularly important when dealing with senior executives, mass layoffs, or situations involving potential legal claims. The document must carefully balance the interests of both parties while meeting strict legal requirements, especially regarding age discrimination (ADEA) and other protected categories.
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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. Release of Claims: Comprehensive release of known and unknown claims, including specific references to federal laws (ADEA, Title VII, ADA, FLSA, FMLA)
5. Consideration: Details of severance payment or other benefits provided in exchange for the release
6. Confidentiality: Obligations regarding confidential information and non-disclosure requirements
7. General Provisions: Standard contractual terms including governing law, severability, and entire agreement provisions
1. Non-Compete Provisions: Restrictions on future employment and competitive activities, subject to state law limitations
2. Non-Solicitation: Restrictions on soliciting employees, customers, or business relationships
3. Cooperation Clause: Agreement to assist with transition and future matters requiring employee's knowledge
4. Reference Provision: Terms regarding future employment references and agreed communication about separation
1. Schedule A - Severance Payment Details: Detailed breakdown of severance payments, timing, and tax implications
2. Schedule B - Company Property Checklist: Comprehensive list of company property to be returned by the employee
3. Schedule C - Benefit Continuation Details: Specifics of any continued benefits post-employment including health insurance and COBRA rights
4. ADEA Disclosure Appendix: Required disclosure for employees over 40, including eligibility factors and time limits for consideration and revocation
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