Document background
The Severance Package Letter is a crucial document used when terminating employment relationships in the United States, whether through layoffs, restructuring, or mutual agreement. It serves as an official record of the separation terms and conditions, protecting both employer and employee interests. The letter must comply with federal regulations including the Age Discrimination in Employment Act (ADEA), Older Workers Benefit Protection Act (OWBPA), and COBRA, as well as state-specific employment laws. A well-drafted Severance Package Letter typically includes severance payment terms, benefits continuation details, release of claims, confidentiality obligations, and relevant legal notices. It's particularly important in situations involving reduction in force, organizational restructuring, or individual terminations where severance benefits are being offered.
