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Resignation Settlement Agreement Template for United States

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Key Requirements PROMPT example:

Resignation Settlement Agreement

"Need a Resignation Settlement Agreement for a senior software engineer leaving our tech company on March 15, 2025, with a 6-month non-compete clause and $75,000 severance package, including continuation of health benefits for 3 months."

Document background
The Resignation Settlement Agreement is utilized when an employee and employer wish to formally document the terms of a voluntary separation from employment. This contract type serves to protect both parties by clearly outlining financial arrangements, ongoing obligations, and mutual releases of claims. It is particularly important in the United States, where it must comply with federal statutes such as the Age Discrimination in Employment Act and state-specific labor laws. The agreement typically includes severance payments, benefit arrangements, confidentiality provisions, and comprehensive releases of potential legal claims.
Suggested Sections

1. Parties: Identifies the employer and employee entering into the agreement

2. Background: States the context of the resignation and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Effective Date of Resignation: Specifies the employee's last day of employment

5. Settlement Payment: Details the amount, timing, and terms of any settlement payment

6. Release of Claims: Comprehensive release of legal claims by the employee

7. Confidentiality: Obligations regarding non-disclosure of agreement terms

8. Return of Company Property: Requirements for returning company assets and documents

9. Governing Law: Specifies the jurisdiction governing the agreement

Optional Sections

1. Non-Compete Provisions: Restrictions on future employment, included when protecting company interests from competition is crucial

2. Non-Solicitation: Restrictions on soliciting employees or customers, included when protecting business relationships is important

3. Benefits Continuation: Terms for continuing health insurance or other benefits, included when offering extended benefits as part of settlement

4. Reference Provision: Terms regarding future employment references, included when agreeing on how future reference requests will be handled

5. Outplacement Services: Terms of career transition assistance, included when providing career transition support

Suggested Schedules

1. Schedule A - Settlement Payment Details: Detailed breakdown of settlement amounts and payment schedule

2. Schedule B - Company Property Checklist: List of company property to be returned

3. Schedule C - Benefits Summary: Details of any continuing benefits arrangements

4. Appendix 1 - Release of Claims: Detailed release language required by state/federal law

5. Appendix 2 - ADEA Disclosure: Required age discrimination disclosure for employees over 40

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Clauses

























Industries

ADEA Compliance: Age Discrimination in Employment Act requirements for valid release of age discrimination claims, particularly important for employees over 40

OWBPA Requirements: Older Workers Benefit Protection Act mandates specific requirements including 21-day consideration period and 7-day revocation period

Title VII Considerations: Title VII of the Civil Rights Act provisions relating to discrimination claims and their valid release

ADA Compliance: Americans with Disabilities Act considerations for releases involving disability-related claims

FLSA Requirements: Fair Labor Standards Act considerations, particularly regarding wage and hour claims and their settlement

ERISA Considerations: Employee Retirement Income Security Act implications for benefits and retirement plans affected by the settlement

NLRA Compliance: National Labor Relations Act considerations, especially regarding protected concerted activity rights

State Labor Laws: Applicable state-specific labor laws that may affect the terms and enforceability of the agreement

State Release Requirements: State-specific requirements for valid release of claims and any mandatory language or provisions

State Non-Compete Laws: State-specific regulations regarding non-compete agreements and their enforceability

Valid Consideration: Requirement for adequate consideration beyond what the employee is already entitled to receive

Review Periods: Mandatory review periods (21 days for individual agreements, 45 days for group terminations)

Revocation Rights: Mandatory 7-day revocation period after signing the agreement

Attorney Consultation: Right to consult with an attorney before signing and recommended language regarding this right

Non-Waivable Rights: Identification of rights that cannot be waived, such as workers' compensation claims or future claims

Tax Implications: Consideration of tax treatment for various types of payments and required tax-related disclaimers

Confidentiality Provisions: Requirements and limitations for confidentiality clauses in settlement agreements

Non-Disparagement: Provisions regarding mutual or one-way non-disparagement obligations and their limitations

Company Property: Requirements for return of company property and verification of compliance

Benefits Continuation: Terms regarding continuation of benefits, including health insurance and COBRA rights

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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