The Non Disparagement Severance Agreement is commonly used in the United States when employment relationships are terminated, whether through layoffs, mutual agreement, or other circumstances. This document serves dual purposes: providing financial compensation to the departing employee while protecting both parties' reputations through mutual non-disparagement provisions. It must comply with federal regulations including ADEA, OWBPA, and state-specific employment laws, particularly regarding mandatory review periods and claim releases. The agreement typically includes severance payment terms, benefit continuation details, release of claims, and specific language required for valid waivers under applicable laws.
Non Disparagement Severance Agreement for the United States
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Key Requirements PROMPT example:
Non Disparagement Severance Agreement
"I need a Non Disparagement Severance Agreement for a senior software engineer leaving our tech company on March 15, 2025, with a severance package of 6 months' salary and continued health benefits for 3 months."
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1. Parties: Identification of employer and employee with full legal names and addresses
2. Background: Context of employment termination and purpose of agreement
3. Definitions: Key terms used throughout the agreement
4. Severance Payment: Amount, timing, and method of severance payment
5. Non-Disparagement Obligations: Mutual commitments regarding non-disparaging statements
6. Release of Claims: Employee's waiver of legal claims against employer
7. Consideration Period: Statutory review period and revocation rights
1. Continued Benefits: Extension of health insurance or other benefits - include when offering continued benefits as part of severance package
2. Return of Company Property: Requirements for returning company assets - include when employee has company property in possession
3. Confidentiality: Terms regarding maintaining confidentiality of agreement - include when parties want terms to remain confidential
4. References: Agreement on handling future employment references - include when specific reference arrangements are agreed
1. Schedule A - Severance Calculation: Detailed breakdown of severance payment calculation
2. Schedule B - Benefits Continuation Details: Specifics of any continued benefits arrangements
3. Appendix 1 - Company Property List: Itemized list of company property to be returned
4. Appendix 2 - Release of Claims: Detailed release language required by state/federal law
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