The Employment Termination Agreement serves as a crucial document when ending an employment relationship in the United States. It's typically used in situations involving voluntary resignations, layoffs, or negotiated departures. The agreement provides legal protection for both parties by clearly documenting the terms of separation, including final compensation, benefit continuation, and mutual releases of claims. It must comply with various federal and state employment laws, particularly when dealing with age discrimination (ADEA), civil rights (Title VII), and state-specific requirements for separation agreements.
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1. Parties: Identification of employer and employee
2. Background: Brief employment history and reason for termination
3. Definitions: Key terms used throughout the agreement
4. Termination Date: Specific date employment ends and final day of work
5. Final Payment Terms: Details of final salary, benefits, and statutory payments
6. Release of Claims: Employee's comprehensive waiver of legal claims against employer
7. Governing Law: Specification of applicable state and federal laws
1. Severance Benefits: Additional compensation or benefits offered beyond statutory requirements
2. Non-Compete Provisions: Restrictions on future employment and competitive activities
3. Confidentiality Obligations: Ongoing duties regarding company confidential information and trade secrets
4. Return of Company Property: Process and timeline for returning company assets and materials
5. Cooperation: Requirements for post-employment assistance with transition and legal matters
6. Non-Disparagement: Mutual obligations regarding future statements about each party
1. Schedule A - Severance Calculation: Detailed breakdown of severance payment and benefits
2. Schedule B - Company Property List: Itemized list of company property to be returned
3. Schedule C - Benefit Continuation Details: Specifics of ongoing benefits and COBRA information
4. Schedule D - Release of Claims: Detailed release language as required by state and federal law
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