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Employee Release Letter for the United States

Employee Release Letter Template for United States

An Employee Release Letter is a legal document used in the United States that formalizes the termination of employment and includes a release of claims against the employer. The document outlines the terms of separation, any severance benefits, and contains specific provisions required by federal and state laws. It must comply with various regulations including the Age Discrimination in Employment Act (ADEA) and state-specific employment laws.

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Employee Release Letter

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What is a Employee Release Letter?

The Employee Release Letter serves as a crucial document in employment separations within the United States, providing legal protection for both employers and employees. It is typically used during voluntary resignations, layoffs, or terminations where the employer offers consideration in exchange for the employee's release of potential claims. The document must comply with federal regulations such as ADEA, OWBPA, and state-specific requirements. When properly executed, it helps prevent future litigation and ensures a clear understanding of separation terms.

What sections should be included in a Employee Release Letter?

1. Opening Information: Date, company letterhead, and employee details including full name, position, and employment dates

2. Separation Terms: Effective date of separation and nature of employment termination

3. Release of Claims: Comprehensive release of all claims against the employer, including specific reference to relevant laws (ADEA, Title VII, etc.)

4. Consideration: Details of what the employee will receive in exchange for signing the release

5. Review Period: Statement of employee's right to review period (21 or 45 days) and 7-day revocation period

6. Acknowledgments: Employee's acknowledgment of understanding and voluntary acceptance of terms

7. Signature Block: Space for signatures, dates, and witness signatures if required

What sections are optional to include in a Employee Release Letter?

1. Non-Disparagement Clause: Mutual or one-way agreement not to make negative statements about the other party

2. Confidentiality Provision: Agreement to keep the terms and conditions of the release confidential

3. Reference Agreement: Terms regarding how future employment references will be handled

4. Continuing Obligations: Reference to any ongoing obligations from employment agreement that survive termination

5. Non-Admission of Liability: Statement that the agreement does not constitute admission of wrongdoing

What schedules should be included in a Employee Release Letter?

1. Schedule A - Benefits Summary: Detailed breakdown of continuing benefits or benefit termination dates

2. Schedule B - Final Payment Statement: Itemized list of final compensation including any severance payment

3. Schedule C - Property Return Checklist: List of company property to be returned by the employee

Authors

Alex Denne

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

Jurisdiction

United States

Publisher

Ƶ

Document Type

Termination Letter

Cost

Free to use
Clauses
























Industries

ADEA Compliance: Age Discrimination in Employment Act requirements must be considered, particularly for employees over 40 years old

OWBPA Requirements: Older Workers Benefit Protection Act mandates specific requirements for valid waivers, including review periods and right to revocation

Title VII Considerations: Title VII of the Civil Rights Act protections against discrimination must be addressed in the release

ADA Compliance: Americans with Disabilities Act considerations must be included in the release language

FLSA Rights: Fair Labor Standards Act claims cannot be waived and must be explicitly excluded from the release

NLRA Compliance: National Labor Relations Act rights must be considered and protected in the release

State Labor Laws: Applicable state-specific labor laws must be considered and addressed in the release

Review Period: 21 days for individual agreements, 45 days for group terminations involving employees 40 or older

Revocation Period: 7-day revocation period must be included for age-related claims

Non-Waivable Rights: Explicit exclusion of non-waivable rights including workers' compensation, unemployment benefits, and right to file EEOC charges

Consideration Requirement: Adequate consideration must be provided and clearly stated in the agreement

Clear Language Requirement: Release must use clear and unambiguous language that is easily understood by the employee

Legal Counsel Notice: Recommendation for the employee to seek independent legal counsel before signing

Confidentiality Provisions: Terms regarding ongoing confidentiality obligations and handling of sensitive information

Non-Disparagement: Clauses preventing both parties from making negative statements about each other

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

Future Claims: Specification that the release covers known and unknown claims up to the date of signing

Reference Policy: Terms regarding how future employment references will be handled

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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